Mon 01/30

Good Morning. Today, we'll delve into A&T Capital's Web3 Trends Report. This report presents a comprehensive view of what Web3 could look like in 2023 and is considered a crucial reference for Web3 this year. By studying it, you'll gain insights into where you should concentrate your focus on blockchain, cryptocurrencies, NFTs, etc. this year.

A&T Capital releases the "Web3 Trends 2023" report and explores the 6 trends that will influence the Web3 era's future.

  1. Revolutionary Shift In Internet Infrastructure: The Web 3.0 primary market investment assets under management have exceeded $50 billion, while the NFT market has expanded to over $20 billion, with more than 3 million holders. There's considerable value potential across all levels of applications, middleware, and infrastructure.

  1. Zk Layer2: ZK Layer 2 solutions like Scroll, StarkNet, and zkSync will provide Ethereum with scalability in the long run. The ZKP technology has numerous applications beyond scaling, including connecting different blockchains and lowering barriers for developers. These solutions will be prevalent by 2023 and will coexist to address various requirements.

  1. Parallel Computing, Modular Design, And Application-specific Blockchain: The use of parallel computing technology offers the best performance to maximize the computation capabilities of blockchain. Additionally, modular design has become the prominent method to unleash the full capabilities of blockchain technology. Apart from finance and money, many industries such as gaming and social media are looking to adopt blockchain technology, which puts pressure on the infrastructure. An application-specific blockchain is ideal for high performance, customization, and value creation.

  1. AA Wallet Vs EOA Wallet: Wallets, as the entry point to Web3, currently face issues in security and user experience. AA and EOA wallets are becoming popular as they strive to offer Web 2.0-level security and user experience while making varying compromises.

  1. Growing Importance Of The Mev Market: Gaining access to the MEV market can significantly boost validator revenues. As of December 31, 2022, the average value of MEV Boost blocks is over three times that of regular blocks. Block builder has paid out over 70,000 ETH to validators within three months of the Ethereum Merge, and the MEV is expected to keep increasing.

  1. Trends In Exchanges: Transparency And Decentralization: Exchanges are becoming more transparent by releasing Proof of Reserves, and this trend is expected to grow in 2023. Furthermore, hybrid exchanges that separate custody and clearing functions are anticipated to become more common in the market.

What Are Exchanges (DEX And CEX)?: An exchange is an application that allows the exchange of cryptocurrencies into other currencies. These take two main forms: Centralized Exchanges (CEX) where the tokens go from one user to another through one main body (Coinbase, Binance), or decentralized Exchanges (DEX) where the transactions are peer-to-peer through the pooling of tokens into an AMM (Uniswap, Curve).