Capital A&T launches the 'Web3 Trends 2023' report and delves into the six trends that will shape the future of the Web3.0 era.
- Revolutionary change in Internet infrastructure
- ZK layer2
- Parallel computing, modular design, and application-specific blockchain
- AA wallet vs EOA wallet
- Trends in Exchanges: Transparency and Decentralization
- Growing importance of the MEV market
1. Web3.0 brings a revolutionary change in the infrastructure of the Internet.
Investment in the AUM primary market for Web3.0 has exceeded $50 billion, and the NFT market has grown to over $20 billion with over 3 million holders. We are seeing significant potential for value capture across all application, middleware, and infrastructure layers.
2. ZK Layer2 will scale Ethereum in the long term while ZKP has infinite possibilities
ZK Layer 2 solutions such as Scroll, StarkNet and zkSync will enable Ethereum scalability in the long term.
ZKP technology has endless possibilities beyond simple scalability, including connecting multiple blockchains and lowering barriers 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 offers the optimal performance to maximize the computing capabilities of the blockchain. Furthermore, modular design has become the leading approach to unlocking the full potential of blockchain technology.
In addition to finance and money, many applications in various industries, such as gaming and social media, are looking to use blockchain technology, putting pressure on the underlying infrastructure.
An application-specific blockchain is a good choice for high performance, customization, and value capture.
4. AA vs EOA Wallet
As the gateway to Web3, wallets today face challenges in terms of security and user experience. AA and EOA wallets are gaining popularity as they aim to achieve a Web 2.0 level user experience and security while making different compromises.
5. The growing importance of the MEV market
Access to the MEV market can significantly increase the revenue of the validator. As of December 31, 2022, the average value of MEV Boost blocks is more than three times that of vanilla blocks.
The block builder has paid out 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. Stock Market Trends: Transparency and Decentralization.
Exchanges are becoming more transparent by publishing Proof of Reserves and this trend is likely to continue to grow in 2023. Furthermore, hybrid exchanges separating custody and clearing functions are expected to become more prevalent in the market.
Lessons from FTX failure and market crash:
The fall of FTX highlights the importance of proper risk management, transparency and regulatory compliance. Furthermore, it also shows the risks of using client funds for internal purposes and the dangers of excessive leverage.
As the crypto market continues to evolve, it is important that industry players learn from the mistakes of the past and strive for best practices in the future.
Conclution
A&T Capital envisions Web 3.0 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 in, build, and power the Web3.0 ecosystem.
For the full report, see: https://capitalant.com/pdf/web3-trends-2023.pdf
About A&T Capital
Capital A&T is an early-growth stage venture 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, it raised 100 million funds. Wallets include Bitcoin Suisse, Celestia, Cobo, Consensys, Gnosis Safe, Infstones, Mysten Labs, and Scroll.
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