A & T Capital Launch the Web3 Trends 2023 report, it delves into the six trends that will shape the future of the Web3.0 era.
- A revolutionary shift in the infrastructure of the Internet
- ZK2 layer
- Parallel Computing, Modular Design, and Blockchain for Applications
- AA Portfolio vs. EOA Portfolio
- Trends in exchanges: transparency and decentralization
- The growing importance of the MEV market
1. Web3.0 brings a revolutionary shift in the infrastructure of the Internet.
The primary market investment AUM for Web3.0 has exceeded $50 billion, and the NFT market has grown to over $20 billion with over 3 million owners. We see great potential for value capture across all layers of applications, middleware and infrastructure.
2. ZK Layer2 will scale Ethereum in the long run while ZKP has endless potential
ZK Layer 2 solutions such as Scroll, StarkNet, and zkSync will enable the long-term scalability of Ethereum.
ZKP technology has endless possibilities beyond mere scalability, including connecting multiple blockchains and reducing barriers for developers.
These solutions will be widely available by 2023 and will coexist to meet diverse needs.
3. Parallel Computing, Modular Design and Blockchain for Applications
The use of parallel computing technology provides optimal performance to maximize the computing capabilities of the blockchain. Additionally, modular design has emerged as a pioneering approach to unleash the full potential of blockchain technology.
In addition to finance and money, many applications in various industries such as gaming and social media are seeking to take advantage of blockchain technology, putting pressure on the underlying infrastructure.
Application-specific blockchains are well-suited for high performance, customization, and value capture.
4. AA vs. EOA Portfolio
As a Web3 portal, wallets today face challenges in terms of security and user experience. AA and EOA wallets are gaining in popularity because they aim to achieve Web2.0 level security and user experience while making various trade-offs.
5. The growing importance of the MEV market
Access to the MEV market can significantly increase validator revenue. As of December 31, 2022, the average value of MEV Boost blocks is more than three times that of vanilla blocks.
Block Builders have paid over 70,000 ETH to validators within three months of the Ethereum Merge, and MEV is expected to continue rising.
6. Trends in exchanges: transparency and decentralization.
Exchanges are becoming more transparent by publishing Proof of Reserves and this trend is likely to continue to grow in 2023. In addition, hybrid exchanges that separate themselves from custody and clearing functions are expected to become more prevalent in the market.
Lessons from the FTX failure and market decline:
The fall of FTX highlights the importance of sound risk management, transparency and regulatory compliance. In addition, it also shows the dangers of using clients’ funds for internal purposes and the dangers of being over-indebted.
As the cryptocurrency market continues to evolve, it is important for industry players to learn from past mistakes and strive for better practices in the future.
A&T Capital envisions Web3.0 as a transformative technology that will bring greater efficiency, security, and convenience to the digital landscape, while opening new opportunities for creativity and impact.
In 2023, A&T Capital plans to invest, build and enable the Web3.0 ecosystem.
For the full report, please check: https://capitalant.com/pdf/web3-trends-2023.pdf
About A&T Capital
A & T Capital It is an early stage growth venture fund for emerging disruptive technologies. Led by three founding partners from Berlin, Singapore and Shanghai, it is supported by a dynamic, global team of researchers and analysts. In 2021, it raised $100 million in funds. Wallets include Bitcoin Suisse, Celestia, Cobo, Consensys, Gnosis Safe, Infstones, Mysten Labs, and Scroll.
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