The creators say that in Web3, your Yat will not only be a universal digital identifier, but it can be used as a URL, wallet address and can be minted on the Ethereum blockchain as a NFT.
Alchemy joins Web3 decacorns club following $200M funding
The Web3 development platform’s valuation saw a massive jump of $6.7 billion in just three months since Oct. 2021.
Polygon raises $450M in Sequoia-led funding round
Blockchain venture funds are shifting their focus to Web3 development and are placing greater emphasis on scalability.
RSS3 aims to be the decentralized information processor of Web3
The developers behind the project noted that the deployment of RSS3 could take up to 6-8 months.
A “unifying Web3 platform” will onboard 1 billion users by 2026, says Harmony COO
COO at Harmony, Li Jiang, is convinced that a bridge connecting all major blockchains is the key to building the foundation of a decentralized internet.
Rise of Web3: Metaverse tokens surge as Meta’s share price plunges
Decentralized Metaverse tokens have made steady gains this week, despite a dump in the stock price of Meta Platforms.
Web3 developer growth hits an all-time high as ecosystem matures
Web3 developer growth hit an all-time high in 2021, yet challenges lie ahead for new developers flooding the space.
Alphabet exploring blockchain technology for flagship services
Google’s parent company is reportedly exploring applying emerging tech to its main products and services.
Decentralized technology will end the Web3 privacy conundrum
The technical and log-jam issues preventing the advantages of Web3 privacy can be put to bed if the right solutions are adopted.
Comments On Pantera Capital’s Predictions For The Crypto Market In 2022
One of Pantera Capital’s investors, Paul Veradittakit, was brave enough to make predictions for this year in the tumultuous world of crypto. Even though we applaud the courage, we’re going to poke holes in them. Because this is the Internet and that’s what we do here. To be clear, the author went through 2021 biggest trends and extrapolated them into the future. Which is a safe enough technique.
Related Reading | Sports NFT Marketplace Lympo Suffers An $18.7 Million Hack
Considering Pantera defines itself as the “first U.S. institutional asset manager focused exclusively on blockchain,” you know Veradittakit barely mentioned Bitcoin. The following is a purely crypto affair. It’s also worth noticing that the biggest criticism that Web3 gets is that it’s funded by venture capital and they’re the ones who will ultimately benefit from it. And, well, that’s just what Pantera is and does.
In any case, let’s explore Veradittakit’s ideas and predictions.
Pantera On L2s and Rollups
Surprisingly, the article starts by throwing Ethereum under the bus. According to Veradittakit, all the action will be on L2s. Those grew tremendously in 2021, and the Pantera investor considers them essential to Ethereum’s scalability.
“As mainstream adoption of crypto continues to grow, Ethereum’s network congestion will only become worse, exacerbating its problems with latency and fees. Rollups are critical to sustaining the growth of Ethereum by ensuring that compute infrastructure is highly scalable, allowing users to interact with dApps with similar or even better expectations around usability as with traditional web apps.”
Reading between the lines, this prediction also says that Ethereum is not going to release any of its network upgrades this year. Which sounds about right.
Pantera On Non-Ethereum/Bitcoin Chains
This prediction refers to the battle of the L1s, or the supposed Ethereum killers. The Pantera investor is obviously partial to one in particular:
“Recent activity in the Solana community, including the launches of massive funds for decentralized social media and gaming, suggests that the ecosystem will continue to grow immensely in the coming year.”
First of all, you can’t have “decentralized social media and gaming” in a centralized platform like Solana. Second, Veradittakit forgets to mention Solana’s constant technical problems and outages. Make of that what you will.
Another tendency the author mentions are bridges, “which enable interoperability between vastly different networks.” He considers those will “accelerate the growth of non-Ethereum ecosystems.” Or, to put it more bluntly:
“Overall, these advancements in cross-chain infrastructure will accelerate the speed at which alternative layer one chains gain traction, fostering the development of a truly robust, diverse multi-chain crypto ecosystem.”
What the Pantera investor really means is that all other L1s will keep leaching on Ethereum. Which sounds about right.
SOL price chart on FTX | Source: SOL/USD on TradingView.com
Veradittakit On Composability and Web3
This theme ties with the previous one. The Pantera investor gets into a very interesting topic, though:
“Decentralized identity projects, which allow users to maintain full, more precise control over personal data and reputation, enabling use cases around un-collateralized loans, know your customer (KYC) rules, and more. In 2022, we’ll see more projects expand the scope of on-chain ownership, allowing users to have full, functional control over their identity and holdings in the digital world.”
One thing’s for sure, the world needs “a single login across all services”. No one can handle the number of passwords we’re supposed to remember. This is a real problem. In the article, however, the author focuses on Ethereum-based solutions. We would like to mention that there’s an alternative that uses the Lightning Network. And, you know, that runs over a network that’s actually decentralized.
Pantera On Expansion of NFTs
This is his least controversial take. Veradittakit thinks “NFTs will continue to grow immensely in popularity through the coming year”. He elaborates:
“NFT projects in 2022 will show substantially more diversity in use cases and will reconfigure how we interact with and think about ownership of digital media more broadly.”
However, paraphrasing Vitalik, NFTs have to live through a bear market before they can be considered a success. Is there going to be a bear market in 2022? Probably not. So, Pantera’s prediction stands.
Veradittakit On Decentralized Autonomous Organizations
This prediction is also fairly uncontroversial:
“Given their heightened prominence, I expect to see DAOs become a mainstream vehicle for online organizing and collective action, helping individuals across the globe get actionably involved with causes they care about.”
And the Pantera investor follows it up with this one:
“As DAO operations grow in complexity, I expect to see even more projects building out DAO tooling and infrastructure in 2022.”
More DAOs and tools to manage them? That sounds about right.
Related Reading | Solana: A Quick Review And Look Ahead
Pantera On DeFi Security
This prediction starts with chilling stats:
“More than $610 million were stolen through DeFi exploits in 2021 (a staggering eightfold increase from $77 million in 2020), and an additional $704 million in funds were stolen and then later returned by white hat hackers, like those behind the $600 million PolyNetwork exploit.”
Considering 2021 was the year of DeFi, this should come as no surprise. Criminals follow success and attention. In any case, look at those numbers and extrapolate them to what they would be if DeFi achieves mainstream status.
“In 2022, I expect to see security become a tremendous focus for DeFi projects, and anticipate several more projects launch around better smart contract auditing, precise runtime monitoring, and consumer protections.”
The question here is, is that enough? Or are smart contracts a security risk by definition? Will anyone be able to build an unhackable DeFi protocol? Who will win this race?
Featured Image by JohannaIris in Pixabay | Charts by TradingView
Ethereum failing to target core Web3 issues, says NEAR co-founder
Co-founder of NEAR Protocol, Illia Polosukhin, lays out his vision for Web3 and explains why Ethereum may not play a prominent role in its foundation.
YouTube CEO hints that NFTs could be added to creator platform
Susan Wojcicki stated YouTube’s intent to “help creators capitalize on emerging technologies.”
$75M Blockchain Founders Fund II backs portfolio of P2E and Web3 projects
Even as crypto markets succumb to bearish pressure, venture capital funds are deploying millions of dollars into blockchain startups.
Andreessen Horowitz aims to raise $4.5 billion to invest in crypto funds
Last week, A16z reportedly said it would raise $3.5 billion for its VC fund, as well as another $1 billion for web3 seed investments.
Web 3.0 needs more users, not more investors
Projects need to focus on making products that attract non-crypto users in order to drive innovation and maturity in Web 3.0.
Opera announces beta of its new Web3 focused ‘Crypto Browser’
Beta browser offers a built-in non-custodial wallet, available now to Windows, Mac and Android users.
NEAR Protocol raises $150M to promote Web3 adoption
Ethereum competitor NEAR Protocol raised funds for Web3 adoption, with Three Arrows Capital and Andreessen Horowitz supporting the proof-of-stake blockchain.
Binance Labs backs $200M Oasis Ecosystem Fund
The VC firm has thrown its weight behind several blockchain projects with a focus on Web3, decentralized finance and cross-chain capabilities.
Cointelegraph Consulting: Crypto events of 2021 in retrospect
With 2021 coming to a close, it might go down as the year that brought the most mainstream attention to cryptocurrencies.
On heritage and NFT: Challenging the meaning of legacy itself
Shaking up the basic concepts of heritage, legacy and history to enter the new era of Web 3.0 with Garry Kasparov through the use of NFTs.