Last year was a challenge all over the world. Financial markets were in the red, affecting millions, if not billions, of people around the world. Inflation rose. It was arguably the worst year for cryptocurrencies since the birth of Bitcoin (BTC). It’s more of an ice age than a crypto winter, with bad actors and vulnerable projects dominating the headlines, including FTX, Voyager, Celsius, Terra, Hodlnaut, and this week his Nexo.
In 2023, the purge could continue with projects that neither develop new technology nor innovate, such as Tezos, Lisk, and EOS. Well said.
Suspicious actors failed to adhere to transparency and decentralization, severely undermining user trust. In the Web2 industry, Big Tech also continues to abuse user data and privacy, prompting the Federal Trade Commission to take a closer look at how his Facebook, Google, Amazon and Apple treat their customers’ personal information. I was.
Related: Encryption breaks Google, Amazon and Apple monopoly on user data
And while this silver-backed statement may sound harsh, many crypto enthusiasts hope they’ve finally learned the lesson: “It’s not your key, it’s not your cipher.” I’m here.
In the blockchain space, it boils down to the collapse of major centralized crypto companies rather than developers and builders.
In 2022, Proof of Reserve (PoR) has emerged as an important topic to regain trust in the light of fraud and fraud. PoR uses cryptographic proof, verification of ownership of public crypto wallets, and third-party audits to prove that the centralized platform holds sufficient funds to match user funds.
The slump in the cryptocurrency market has seen market capitalization surpass $2 trillion and many digital assets have lost more than 90% of their value. As of September, stock market losses have wiped out his $9 trillion worth in American households alone.
But it’s not all gloom and doom
Despite the turmoil and collapse of several crypto companies, the risk-adjusted returns of cryptocurrencies will indeed perform in line with US and global equity indices in 2022, far outperforming US Treasuries. was
Meanwhile, the blockchain market is poised to continue growing. His PwC, an accounting firm, estimates that Metaverse-related projects alone will make him worth $1.5 trillion by 2030.
There are good reasons to remain bullish on cryptocurrencies. On July 7th, the number of wallet addresses with a balance of 0.1 BTC or more increased significantly, surpassing an all-time high of 4.1 million. On November 28th, he reached his ATH of 800,000 addresses as well as the number of addresses holding 1 BTC to 10 BTC.
Decentralized finance (DeFi) is also on the rise despite the crisis that caused a significant slowdown this year. The number of DeFi users around the world is increasing day by day. At the height of the cryptocurrency market in November 2021, the total amount locked in DeFi was around $180 billion. However, it is expected to recover to about $232 billion by 2030.
GameFi was also hit, dropping to $8 billion, but credible data suggests it will return to $50 billion by 2025. However, some believe it may collapse in 2023. One of the most promising blockchain categories is the machine economy, or the decentralized Internet of Things, which could be worth $5.5 trillion to $12.6 trillion by the beginning of the next decade. I have.
Related: From Bernie Madoff to Bankman Fried, Bitcoin Maximalists Verified
As people become more and more interested in owning and monetizing their data, blockchain, or more specifically smart devices connected to smart contracts such as decentralized wireless projects, will become more important after 2023. you will see a lot of hiring.
And the coming year 2023
The cryptocurrency and blockchain space has survived four crypto winters, proving its resilience. In 2023, there will be a growing interest in increasing transparency and regulation to build greater trust among crypto and blockchain projects that continue to act maliciously.
Bad actors will continue to be weeded out by legitimate blockchain projects and entrepreneurs working together to improve the cryptocurrency space. Large cryptocurrency companies used to hold most of the power, but in 2023, innovative builders will surge and next-generation applications will carry the next wave of mass adoption.
Lauren Chai Co-founder and CEO of IoTeX. Previously, he worked for companies such as Google, Uber, and Oracle. He has his Ph.D. His research at the University of Waterloo focused on the design and analysis of lightweight cryptography and his IoT authentication protocol. At Google, he led many key security initiatives for our technical infrastructure, including SSL offloading, enabling certificate transparency for all Google services, mitigating SSL attacks, and protecting privacy. I was there. He was also the founding engineer of Google Cloud Load Balancer. Google Cloud Load Balancer currently serves thousands of cloud services with over 1 million queries per second.
This article is for general information purposes and is not intended, and should not be construed as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author and do not necessarily reflect or represent the views or opinions of Cointelegraph.