Alex Coin In a report presented by researchers from JPMorgan, reference is made to the importance of interoperability, the future of Ethereum a decentralized open-source blockchain with smart contracts functionality. compared with other networks, as well as the evolution of sectors such as DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. and the NFT.
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The U.S.-based international bank, JPMorgan, said in a new report that 2022 could be the year when many more bridges a blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects. between networks are established. Blockchain, which would be particularly beneficial for certain financial ecosystems such as DeFi and the NFT.
The value of interoperability blockchain interoperability, or cross-chain interoperability, is the ability to see and share information across multiple blockchains. between networks Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies.
These new declarations were outlined in a report published today by JPMorgan, which was led by analysts Kenneth Worthington and Reginald Smith, who presented a very optimistic outlook on the cryptomarket for this 2022, provided that greater integration, capacity and speed in transactions are achieved through upgrades to the network a network refers to all nodes in the operation of a blockchain at any given moment in time. of Ethereum, emergence of second layer solutions and integration of bridges with other networks.
In this sense, the researchers emphasized 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 acknowledged that congestion issues and high cost of operations greatly compromise the network’s potential to serve this purpose, although this does not detract from its versatility in communicating with others.
Here the researchers concurred with the statements presented in a report previously published by JPMorgan, in which they claimed that the dominance of Ethereum about space DeFi could weaken in the face of proposals from 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 a measure of Bitcoin's value in the context of the larger cryptocurrency market. and market an area or arena, online or offline, in which commercial dealings are conducted. value by facilitating the development of new projects that take advantage of Ethereum’s limitations.”
Ethereum will get better, but what about Bitcoin?
Sin embargo, según Worthingon y Smith, Ethereum can still keep the scales on its side if everything goes according to plan on its roadmap, as mid-2022 is expected to bring one of the most anticipated updates on the road to Ethereum 2.0, which would allow to officially migrate the protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. of the Proof-of-Work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. (PoW) a Proof-of-Stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. (PoS), resolving concerns associated with transaction cost and speed of transactions.
At this point, the researchers went on to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the case of Bitcoin, the main digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. 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 the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. at this time could well be to figure as an asset to store value, the thesis of the currency as the new digital gold gains gains refer to an increase in value or profit. strength as it is a durable asset, portable, fungible, scarce, verifiable and free of controls, although its market is still far below the precious metal.
In this regard, researchers lean toward gold because of its history and adoption in major markets, making it much more stable in value than gold. Bitcoin, at least at the moment.
DeFi and the NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility.
The last point to be highlighted has to do with the ecosystems of DeFi and the NFT in 2022, which over the past year have grown exponentially and present very good prospects for the future.
However, they stressed that these markets are still in their early stages and that we should still wait to see more potential in the equity equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation. and commodity tokenization sector:
“In our future, we see tokenization (and fractionation) of credit, equities, pieces of real estate (commercial to residential to hotel rooms) and non-tradable investments, including private equity.”
Regarding decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance, Worthingon and Smith predict a good future for it, although they expected more from the sector in 2021, defending the absence of intermediaries as opposed to the traditional financial sector as the main advantage. In this 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 Cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. Rules and Regulations) limits the presence that traditional finance can have in cryptocurrencies.”
- “Optimistic view on Ethereum’s dominance in DeFi is at risk,” says JPMorgan bank
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Source: Blockworks
Version by Angel Di Matteo / DiarioBitcoin
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