Web3 social will take shape this year, while DeFi and NFTs remain relevant: crypto experts

Just as 2022 fizzled out, we asked several of our crypto contacts for their views on that year and the path ahead. Here then are some more reflections and predictions from three industry experts.

Silver linings from 2022?

We’re seeing some positive price action in the crypto market to begin the year, which is encouraging. But was there any positivity you were able to glean from 2022 in crypto?

Ahmed Al-Balaghi, Co-Founder of the Biconomy Web3-stack toolkit: “2022 saw NFTs continuing to remain relevant despite dipping prices, while The Merge dominated headlines and even gained mainstream attention, bringing Ethereum further into the spotlight as a result.

“These things show how the community is bigger than the negative events and there are those persevering despite the downturns.”

Khori Whittaker, Executive Director of Ethereum Name Service (ENS): “The year highlighted the importance of education and understanding when it comes to Web3 practices.

“The fallout from reliance and trust in centralised exchanges proved, again, that to make Web3 viable, DeFi needs to be more appealing and safer for new users than the go-to centralised option.

“Also, an area that held out in 2022 was NFTs. Despite the market downturn interest in NFTs from individuals and brands continued at a rate higher than expected.

“But to keep interest and participation in these latest additions to the space we need to look at meeting them halfway. And that’s by providing simplified solutions to currently over complicated problems – starting with human-readable names.”

James Kouzinas, Business Development and Sales at Crowdz: “The greed and hubris that was prevalent in 2022 caught up with many players in the industry. Despite this, there are some silver linings – we saw the importance of DeFi, and a number of interesting projects received strong funding.

“And despite that year’s mess, we’re still seeing strong technology adoption from both consumers and institutions.”

Predictions for 2023?

James Kouzinas, Crowdz: “CBDCs (Central Bank Digital Currencies) will likely receive global adoption from 2024 and beyond. We’re starting to see central banks discover operating efficiencies, particularly with respect to delivering monetary policy.

“And expect to see Web3 social take shape in 2023 and beyond. Keep an eye on Lens Protocol.

“Meanwhile, institutional adoption will occur when regulators provide clear operating frameworks.

“And furthermore, there needs to be a greater focus on technology development rather than price. The media tends to fixate on the price fluctuations of major coins like Bitcoin and Ethereum.

[Ed: Nah, we’d never do that.]

“Still, if we shift our focus to how the technology is being utilised and the issues it addresses, I think we will see a positive change.”

[Fair.]

Khori Whittaker, ENS:

“In 2023, there will be a big push for greater decentralisation and transparency across the Web3 space after the centralised exchange fallout of 2022.

“This will need to happen alongside preparation for the next bull cycle, as long as the bear market continues.

“User-friendly decentralised protocols made for a wider audience will be necessary if we want to overcome the crypto slump and onboard new users.”

Ahmed Al-Balaghi, Biconomy: “I think the bear market could well go on for a bit longer.

“But like all bear markets, the focus will be on building products with better utility and making improvements in onboarding and user retention, as well as ensuring a better understanding of the space ahead into the next bull cycle.”

These responses have been edited lightly for clarity. None of the information contained in this article represents financial advice.

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