You are here: Home/ News/ Ethereum and the Road Ahead: How L2 Solutions Are Shaping Crypto Future
Just recently, an X user, zjj.eth, shared some thought-provoking ideas on the crypto market, in which he highlighted the reality that the crypto market is still in its early years in spite of its fast development. To Ethereum’s switch to proof-of-stake just 2 years earlier, the Layer 2 option Arbitrum going live 3 years back, and the brand-new innovations like zkVM/zkEVM and account abstraction within the last 4 years, it’s clear that numerous fundamental aspects of crypto are still reasonably fresh.
Yes, we are still early.
— Ethereum just “combined” 2 years earlier;
— L2 @arbitrum live 3 years back, and blob just lived till this year;
— zkvm/evm is a brand-new hot subject within 4 years;
— very same with account abstraction
> Bitcoin deserves a trillion dollars and half of Wall … https://t.co/lgosBYWZ2y
— zjj.eth 曾嘉俊 (@zengjiajun_eth) September 16, 2024
Bitcoin, whose market capitalization simply struck the trillion mark, is now practically a certainty on Wall Street portfolios. The other crypto market, which is likewise worth a trillion dollars, is still discovering its location in the environment. Bitcoin stands high, with its market share of over 50% in crypto, which represents that the marketplace is still in its infancy.
The core of cryptocurrency is now moving from a basic kind of currency to something that is more associated to blockchain innovation. On the one hand, Tether’s big financial investments in U.S. Treasuries, exceeding that of Germany, show its increasing monetary power, however this is just part of the broader crypto story.
Equity capital financial investment in the crypto sector has actually certainly been significant, surpassing $20 billion over the previous 4 years. Such a figure is absolutely nothing compared to the over $200 billion that AI has actually gotten in the exact same duration. Such a distinction plainly reveals that while the financing of crypto facilities is necessary, it is still not similar to other technological developments.
Ethereum co-founder’s Insights on Layer 2 and ZK-SNARKs
Vitalik Buterin, the co-founder of Ethereum, voiced comparable beliefs, worrying that the real advancement of the innovation remains in making Layer 2 options more cost-efficient. Buterin has actually been a strong advocate of the concept that the larger adoption of cryptocurrency beyond the scope of high-value decentralized (DeFi) applications depends on the reduction of deal charges, which is a turning point that has actually just recently been accomplished.
He likewise highlighted ZK-SNARKs, an innovation near to maturity with some prospective applications such as zupass and zk-email, as one of the necessary components for the future. Through these brand-new developments and account abstraction, it is thought that numerous elements of decentralized identity and performance will be bridged, thus pressing the abilities of blockchain innovation to brand-new heights.
If I needed to choose a # 2 and # 3, it would be:
2.