In a report presented by researchers from JPMorgan, reference is made to the importance of interoperability, the future of Ethereum compared to other networks, as well as the evolution of sectors such as DeFi and the NFT.
The international bank based in the USA, JPMorgan, indicated in a new report that 2022 could be the year in which many more bridges between networks are established Blockchain, which would be especially beneficial for certain financial ecosystems such as DeFi and the NFT.
The value of interoperability between networks Blockchain
These new statements were outlined in a report published today by JPMorgan, which was led by analysts Kenneth Worthington and Reginald Smith, who presented a very optimistic perspective on the crypto market for this 2022, provided that greater integration, capacity and speed in transactions are achieved through updates to the network of Ethereum, emergence of second layer solutions and integration of bridges with other networks.
In this sense, the researchers highlighted that currently Ethereum brings together the bulk of use cases that can take advantage of the benefits of technology Blockchain, being a canvas for all those interested in developing solutions, products and services. However, they also recognized that the problems of congestion and high cost of operations greatly compromise the potential of the network to serve this purpose, although this does not mean that it is a versatile network when communicating with others.
Here the researchers agreed with the statements presented in a report previously published by JPMorgan, in which they ensured that the domain of Ethereum over space DeFi could be weakened by the proposals of other networks with greater scalability and better operating costs:
“Solana is much faster than Ethereum. Cardano is more scalable. Polkadot is more interoperable. These advantages could allow these other chains to undermine Ethereum’s dominance and market value, as they facilitate the development of new projects that take advantage of Ethereum’s limitations. “
Ethereum will improve, but what about Bitcoin?
However, according to Worthingon and Smith, Ethereum You can still keep the balance on your side if all goes according to plan on your roadmap, as one of the most anticipated updates on the road is expected in mid-2022. Ethereum 2.0, which would allow the official migration of the Proof-of-Work (PoW) to Proof-of-Stake (PoS), solving concerns associated with the cost of transactions and their speed.
At this point, the researchers went on to address the case of Bitcoin, the main digital currency in this market, which according to them is “quite one-dimensional” in terms of the use cases it can offer, precisely because it does not have as much freedom as other networks that incorporate smart contracts.
While the greatest utility of Bitcoin At this time it could well be to be listed as an asset to store value, the thesis of the currency as the new digital gold is gaining strength since it is a durable, portable, fungible, scarce, verifiable and free of controls asset, although its market it is still well below the precious metal.
In this sense, researchers are inclined towards gold because of its history and adoption in the main markets, so its value is much more stable than that of Bitcoin, at least right now.
DeFi and the NFT
The last point to highlight has to do with the ecosystems of DeFi and the NFT in 2022, which throughout the past year grew exponentially and present very good prospects for the future.
However, they highlighted that these markets are still in their early stages and that we should still wait to see a greater potential in the sector of tokenization of shares and basic products:
“In our future, we see the tokenization (and fractionation) of credit, stocks, parts of real estate (commercial to residential to hotel rooms) and non-marketable investments, including private equity.”
Regarding decentralized finance, Worthingon and Smith predict a good future for them although they expected more from the sector in 2021, defending the absence of intermediaries as the main goodness in contrast to the traditional financial sector. In that sense, they also highlighted that this is attracting entities with a track record, precisely to make changes in their business models:
“Here, we see traditional financial services on the front-end, but DeFi driving the back-end. However, we see that the current regulatory environment (really the lack of Federal Rules and Regulations on Cryptocurrencies) limits the presence that traditional finance can have in cryptocurrencies. ”
Version by Angel Di Matteo / Daily bitcoin
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