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A&T Capital Announcing the “Web3 Trends 2023” report, Six trends shaping the future of the Web3 era.
- A Revolutionary Change in Internet Infrastructure
- ZK Layer 2
- Parallel computing, modular design, application-specific blockchain
- AA wallet and EOA wallet
- Exchange Trends: Transparency and Decentralization
- Growing Importance of MEV Market
1- Web 3.0 will revolutionize Internet infrastructure.
Web3.0’s major market investment AUM exceeds $50 billion, NFT market exceeds $20 billion, with over 3 million holders. We believe there is great potential to capture value at all layers: application, middleware, and infrastructure.
2- ZK Layer2 scales Ethereum for the long term, but ZKP has endless possibilities
ZK Layer 2 solutions such as Scroll, StarkNet, and zkSync enable Ethereum scalability in the long term.
ZKP technology has endless possibilities, not only for scaling, but also for connecting different blockchains and reducing 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
Utilizing parallel computing technology provides optimal performance to maximize the computing power of the blockchain. Moreover, modular design has emerged as the primary 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 take advantage of blockchain technology, putting pressure on the underlying infrastructure.
Application-specific blockchains are good for high performance, customizability, and value capture.
4-AA vs EOA Wallet
As a gateway to Web3, wallets today face challenges in terms of security and user experience. AA and EOA wallets are growing in popularity as they aim to achieve Web 2.0 level security and user experience while making various trade-offs.
5- Growing Importance of MEV Market
Access to the MEV market can significantly increase a validator’s revenue. As of December 31, 2022, the MEV Boost block’s average value is more than three times his vanilla block’s.
Block builders have paid out over 70,000 ETH to validators within three months of the Ethereum merge, and in total the MEV is projected to continue rising.
6- Exchange trends: transparency and decentralization.
Exchanges are increasing transparency by issuing Proof of Reserves, and this trend could grow even further in 2023. Additionally, we expect hybrid exchanges decoupled from custody and clearing functions to become more prevalent in the market.
Lessons learned from FTX failure and market decline
FTX’s decline highlights the importance of proper risk management, transparency and regulatory compliance. It also shows the risks of using client funds for internal purposes and the danger of excessive leverage.
As the crypto market continues to evolve, it is important that industry players learn from past mistakes and strive for better practices in the future.
Conclusion
A&T Capital envisions Web3.0 as a revolutionary technology. This technology opens up new opportunities for creativity and influence, while improving the efficiency, security and convenience of the digital landscape.
In 2023, A&T Capital plans to invest, build and enhance the Web3.0 ecosystem.
For the full report, please check: https://capitalant.com/pdf/web3-trends-2023.pdf
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AhA&T Capital Battle: A&T Capital An early stage growth venture fund for emerging disruptive technologies. Led by his three founding partners based in Berlin, Singapore and Shanghai, it is supported by a dynamic global team of researchers and analysts. In 2021, we have raised a $100 million funding pool. Portfolio includes Bitcoin Suisse, Celestia, Cobo, Consensys, Gnosis Safe, Infstones, Mysten Labs, and Scroll.
