A&T Capital launches “Web3 Trends 2023” report and looks at the six trends that will shape the future of the Web3.0 era.
- Revolutionary Change in Internet Infrastructure
- ZK2 layer
- Parallel computing, modular design and application-specific blockchain
- AA portfolio vs EOA portfolio
- Trade trends: transparency and decentralization
- Growing Importance of the SPD Market
1. Web3.0 brings a revolutionary change in Internet infrastructure.
The main market investment AUM for Web3.0 exceeded $50 billion, and the NFT market reached over $20 billion with more than 3 million holders. We see significant potential for capturing value across all application, middleware and infrastructure layers.
2. ZK Layer2 will scale Ethereum in the long term while ZKP has endless possibilities
ZK Layer 2 solutions, such as Scroll, StarkNet, and zkSync, will enable Ethereum’s scalability in the long term.
ZKP technology offers endless possibilities beyond simple scaling, including connecting various blockchains and reducing hurdles for developers.
These solutions will be widely available by 2023 and will coexist to meet diverse needs.
3. Parallel computing, modular design and application-specific blockchain
The use of parallel computing technology provides optimal performance to maximize the computational capabilities of the blockchain. Moreover, modular design has become the main approach to unleashing the full potential of blockchain technology.
In addition to finance and money, many applications in various industries such as gaming and social media seek to use blockchain technology, which puts pressure on the underlying infrastructure.
An application-specific blockchain is ideal for high performance, customization, and value capture.
4. AA vs. EOA portfolio
As a gateway to Web3, wallets today face security and user experience challenges. Both AA and EOA wallets are gaining popularity as they aim to achieve Web2.0 level security and user experience while making different compromises.
5. The Growing Importance of the VPD Market
Access to the MEV marketplace 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.
The block builder paid over 70,000 ETH to validators within three months of the Ethereum merger, and the MEV in total is expected to continue to rise.
6. Trade trends: transparency and decentralization.
Exchanges are becoming more transparent by publishing proof of reserves and this trend is expected to continue to grow in 2023. Additionally, hybrid exchanges that separate custody and clearing functions are expected to become more prevalent in the market.
Lessons from FTX’s failure and market decline:
The fall of FTX highlights the importance of good risk management, transparency and regulatory compliance. Furthermore, it also shows the risks of using client funds for internal purposes and the dangers of over-indebtedness.
As the crypto market continues to evolve, it is important that industry players learn from past mistakes and strive to adopt better practices in the future.
Conclusion
A&T Capital envisions Web3.0 as a transformative technology that will bring greater efficiency, security and convenience to the digital landscape, while opening up new opportunities for creativity and impact.
In 2023, A&T Capital plans to invest, build and strengthen the Web3.0 ecosystem.
For the full report, please see: https://capitalant.com/pdf/web3-trends-2023.pdf
About A&T Capital
A&T Capital is an early-stage venture capital fund for emerging disruptive technologies. Led by three founding partners based in Berlin, Singapore and Shanghai, it is supported by a dynamic global team of researchers and analysts. In 2021, he raised 100 million funds. Wallets include Bitcoin Suisse, Celestia, Cobo, Consensys, Gnosis Safe, Infstones, Mysten Labs, and Scroll.
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