Coinbase executives said that major Ethereum expansion improvements will be launched soon

Surojit Chatterjee, Coinbase’s chief product officer, recently released his predictions for the crypto industry in 2022, and he foresaw significant progress in the expansion of Ethereum.

Industry leaders, analysts, and investors are sharing their predictions for the crypto ecosystem in 2022, and Coinbase’s Surojit Chatterjee believes that Ethereum will be at the forefront of Web3 and the scale of the crypto economy.

The Chief Procurement Officer shared his predictions on the company blog postal On January 4, he stated that the scalability of Ethereum will increase, but the alternative layer 1 network will also receive attention.

“With the emergence of Eth2 and many L2 rollups, I am optimistic about the scalability improvements of Eth.”

He added that there will also be newer layer 1 networks focused on games and social media. Chatterjee predicts that advances in layer 1 to layer 2 bridges will greatly increase scalability, adding that the industry will “desperately seek speed and usability improvements across L1 and L1-L2 bridges.”

These bridges enable tokens to move from layer 1 networks such as Ethereum to layer 2 networks such as Arbitrum, and vice versa.

When talking about scaling technology, CPO specifically mentioned ZK-rollups, saying that they will “attract the attention of investors and users.” Zero-knowledge extension “aggregates” transaction data in batches for more effective processing on the first layer of Ethereum.

Companies like Matter Labs have Advance by leaps and bounds in 2021 With their development and deployment based on the aggregated zkSync layer 2 platform.

The tier 2 ecosystem has undergone a massive expansion in 2021, and the adoption rate of all major platforms has surged.according to L2beatTracking the L2 ecosystem, the total value locked has soared by nearly 11,000% in the past year, from approximately US$50 million in January 2021 to US$5.5 billion at the end of the year.

related: Even if Ethereum 2.0 is underway, L2 expansion is still the key to the future of DeFi

Chatterjee predicts that there will be more privacy-focused applications, but this may cause more regulatory attention because Implement more KYC/AML (Know Your Customer/Anti-Money Laundering) restrictions.

“We will see the emergence of new privacy-centric use cases, including privacy security applications and game models that have privacy built into the core.”

Other predictions he made include more industry regulation, more institutions participating in DeFi, the emergence of more DeFi insurance, greater brand participation in Metaverse and NFT, and Web2 companies scrambling to enter Web3.

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