3 Greenshoot Sectors in the Blockchain Space
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 imagine the general area stays resilient regardless of risky market circumstances.
Inside this text, I’ll discover a number of 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, lately there was extra consideration on the social component of Web3, searching for to make use of tokenization to rework social conduct. As shopper transactions might develop into extra frequent on-chain, we imagine stablecoins taking part in an more and more vital function 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, 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 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, corresponding 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 keeping with the particular calls for of a consumer-facing software. Moreover, elevated smart-contract composability utilizing general-purpose languages corresponding to Rust permits for elevated developer familiarity, lowering the obstacles 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 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 probably the most attention-grabbing improvements is the rise of Bitcoin digital belongings powered by Ordinals-like tech. With this, we might even see a bifurcation in the usage of NFTs, the place Ethereum NFTs might develop into 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, vogue and media.
