From the emergence of “AI x blockchain” use-cases to an growing position of stablecoins in monetary markets, to the maturation of zero-knowledge proofs, I imagine the general area stays resilient regardless of unstable market circumstances.
Inside this text, I’ll discover among the areas which we at Pantera are keeping track of.
Whereas Web2 has progressed from social to finance, Web3 is shifting from finance to social. From Buddy.tech to on-chain loyalty, just lately there was extra consideration on the social aspect of Web3, in search of to make use of tokenization to rework social habits. As client transactions could develop into extra frequent on-chain, we imagine stablecoins enjoying an more and more necessary position as an on-ramp and off-ramp settlement answer between DeFi and TradFi use-cases.
Furthermore, current developments in generative AI doubtlessly promise a much more abstracted, personalised, and simplified consumer expertise. With elevated AI-enabled abstraction, we hope that this could cut back the onboarding and academic barrier to Web3, making blockchain information extra accessible to these with non-technical backgrounds.
2. ZK-Enabled Modularity and Composability
We imagine zero-knowledge proofs (ZKPs) will proceed to mature, each with new theoretical developments in recursive proving and the gradual specialization of firms inside the vertical to particular roles, similar to co-processing, show executions, zkDevOps, privateness layers, and so forth. With this we’re starting to make use of ZKPs as a method of creating a standard interface between completely different layers of a modular tech stack.
Modularity is the place completely different layers of the blockchain stack (consensus, execution, information availability and so forth.) are operated by completely different suppliers. This concept permits for elevated composability within the type of lego-like “plug-and-play” blockchain architectures. Because of this initiatives can customise their blockchain tech stack in line with the particular calls for of a consumer-facing utility. Moreover, elevated smart-contract composability utilizing general-purpose languages similar to Rust permits for elevated developer familiarity, lowering the boundaries to entry for Web3 builders.
3. Bitcoin Ecosystem
We imagine a 3rd area to doubtlessly look out for inside the subsequent yr or so is the general Bitcoin ecosystem, which has seen a flurry of renewed curiosity forward of the anticipated 2024 halving. This contains potential SEC approval of ETFs from main TradFi funds, in addition to a modularized Bitcoin blockchain that permits for extra composable good contracts.
Rise of Ordinals Inscriptions. Supply: Dune Analytics. Retrieved Oct 6.
Maybe some of the attention-grabbing improvements is the rise of Bitcoin digital belongings powered by Ordinals-like tech. With this, we might even see a bifurcation in using NFTs, the place Ethereum NFTs could develop into targeted on transaction utility, whereas Bitcoin NFTs, as a result of chain’s cultural significance, could evolve right into a type of “digital jewellery” and collectibles for artwork, vogue and media.
