From the emergence of “AI x blockchain” use-cases to an growing function of stablecoins in monetary markets, to the maturation of zero-knowledge proofs, I consider the general house stays resilient regardless of risky market situations.
Inside this text, I’ll discover among the areas which we at Pantera are maintaining a tally 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 component of Web3, in search of to make use of tokenization to remodel social habits. As shopper transactions might grow to be extra frequent on-chain, we consider stablecoins enjoying an more and more essential function as an on-ramp and off-ramp settlement resolution between DeFi and TradFi use-cases.
Furthermore, latest developments in generative AI doubtlessly promise a much more abstracted, customized, and simplified person expertise. With elevated AI-enabled abstraction, we hope that this could scale back the onboarding and academic barrier to Web3, making blockchain knowledge extra accessible to these with non-technical backgrounds.
2. ZK-Enabled Modularity and Composability
We consider zero-knowledge proofs (ZKPs) will proceed to mature, each with new theoretical developments in recursive proving and the gradual specialization of firms throughout the vertical to particular roles, equivalent to co-processing, show executions, zkDevOps, privateness layers, and so forth. With this we’re starting to make use of ZKPs as a means of building 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, knowledge 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. Which means that tasks can customise their blockchain tech stack in response to the particular calls for of a consumer-facing software. Moreover, elevated smart-contract composability utilizing general-purpose languages equivalent to Rust permits for elevated developer familiarity, decreasing the limitations to entry for Web3 builders.
3. Bitcoin Ecosystem
We consider a 3rd house to doubtlessly look out for throughout 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 consists of attainable SEC approval of ETFs from main TradFi funds, in addition to a modularized Bitcoin blockchain that enables for extra composable sensible contracts.
Rise of Ordinals Inscriptions. Supply: Dune Analytics. Retrieved Oct 6.
Maybe one of the vital attention-grabbing improvements is the rise of Bitcoin digital property powered by Ordinals-like tech. With this, we might even see a bifurcation in the usage of NFTs, the place Ethereum NFTs might grow to be centered on transaction utility, whereas Bitcoin NFTs, as a result of chain’s cultural significance, might evolve right into a type of “digital jewellery” and collectibles for artwork, style and media.