The crypto scene has largely been dominated by Bitcoin and Ethereum, with many new coins failing to catch on. The industry is growing at a rapid pace however, as more businesses are looking into adopting it.
The “future of cryptocurrency 2021” is the question that many people are wondering about. In Part 3, experts answer what they think will happen in the future for cryptocurrency and blockchain.
Alex is a writer, speaker, investor, and advisor who is interested in the implications of new technologies like blockchain and cryptocurrencies. He is the general manager of Ninepoint Digital Assets Group, a company that provides investment management services in the realm of blockchain and cryptocurrencies.
“I believe 2022 will be the year of the multichain.” New layer-one protocols like as Solana and Avalanche emerged in 2021, promising to enhance Ethereum with quicker throughputs and reduced fees. However, these advantages may be fleeting. They may meet the same fate as Ethereum as their popularity grows. Remember how low Ethereum costs were before the emergence of liquidity mining and other DeFi applications led to the network finding a product-market fit.
It became a victim of its own popularity as a flood of new users flooded into the ecosystem. Fees soared, transforming Ethereum into a ‘whalechain,’ with only the rich able to pay them. It’s possible that the same thing will happen to other layer ones. That’s OK. Block space, I think, will be the most valuable resource in the world for the next several years. All of these layer ones will almost certainly fill up, implying that improved techniques to link diverse protocols are required.
Most novice crypto users will only engage at the application layer, oblivious to or unconcerned with the underlying chain on which they operate. This entails bringing interoperability to fruition. Cosmos, which supports hundreds of crypto assets worth tens of billions of dollars, is one of the parties working on multichain. Cosmos is leading the road towards the year 2022, which is the year of Multichain Maximalism.”
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