In recent weeks, chatter and concern erupted, which is easy to get caught up in around the crash of TerraUSD stablecoin and the ongoing losses that have affected several jobs and market situations throughout the wider ecosystems of cryptocurrency and DeFi (decentralized finance).
However, the story may be different for those heavily focused on building tools, protocols, and services to expand and shape Web3 for the future. There is a tendency that their focus will quickly readjust. For builders, it’s crucial to keep building.
At current events such as Permissionless and ETHAmsterdam, a more poignant and deeper conversation started to emerge. It’s part of our expectations that it will proceed in dominating discourse as we journey via the current bear market and move right into infrastructure scaling, which is more stable and productive.
How can enough infrastructure be built to onboard the fast-moving cryptocurrency newbies and use cases? Today, several individuals are investing in virtual currencies though bearish sentiments are being experienced. It should be noted that the crypto industry is about more than the prices in the market.
A global return to normal will generate more interest in DeFi and crypto
Factually, the rising demand for network capacity is being fueled by some factors. As the restrictions due to the COVID-19 pandemic ease, people have started to find it easy to travel around the globe. What can generate more interest in DeFi and crypto
Dor numerous people in the industry, this year stands as the first opportunity in 3 years to journey to different parts of the world, attending conferences such as EthAmsterdam, EthDenver, and DevCon, which is slated to hold in October in Bogota. In the second month of 2021, EthDenver recorded a significant number of people, which is remarkable in the ecosystem.
Not quite long, the sponsors of the hackathon at ETHAmsterdam won the EP London in 2019, which happened to be the last significant conference before the surge of the coronavirus.
That implies that those that are upstart builders just three years ago can now sponsor the builders of both now and the future– A symbol of significant progress.
Tremendous growth can be observed in the number of individuals that are deeply interested in exploring these conferences, networking, and then applying to occupy numerous vacant jobs. Some less secure activities in the industry will be chased away by the bear market, but actual builders can make efforts in times like these, and use talented people with the proper attitudes and skills.
As normalcy is being restored after the COVID-19 pandemic, it is expected that more people, more fortuitous meetings, and more hiring to be united. This is great for development and growth.
New chains, new opportunities, new challenges
New chains are being launched daily, which are characterized by different and more complex design options. These include roll-ups vs. zero-knowledge technology. The emergence of these varied and new chains and how they have grasped attention offer thrilling blank canvases for builders to use.
A time to live in a layer-2 (L2) world will come, and preparation should be made ahead to scale. This implies that we will be experiencing more asset bridges, more oracles, more currencies, more incentive mechanisms, and more of everything.
Part of this growth is also a new emerging challenge: this is how to make teams build from scratch, having multi-chain support in mind
The design of the current systems was not for a multi-chain universe, so there is a quest to get ways to change to this new paradigm. The new builders with the advantage of designing multi-chains first experience the challenge of building infrastructure and tools that supersede the capacity of what is currently on the ground.
Ethereum is moving closer to its much-anticipated and well-documented Merge. And as this occurs, we are gradually moving towards increased capacity; nonetheless, the Merge and the development of the L2-centric ecosystem moving towards us stand as the next wave of applications– also, some capacity questions must be answered.
Let’s face the most pressing points
More demand and more building form a logjam, and a crucial factor is a composability. How can systems that offer different systems the chance to be composable and interoperable between one another in a multi-chain world be built?
It’s definitely just starting. Below are some pertinent points that must be tackled as a community of builders and an industry:
- How teams that focus on building can work towards having enough runway to face a lengthy bear market.
- How to deal with the fact that there is a need to exist and function on multi-chains.
- How to engage that in a scalable way.
- How liquidity will fragment effectively across chains.
- How secure and safe bridges (for asset movements and message control) should be built.
The ways to tackle these points mentioned above are at the cutting edge of our work and industry. At the moment, work is going on to bring about solutions. The most important thing is to keep scalability at the apex of the priority list.
The ability and passion for building will be more intense than ever as the world opens up. Regardless of if the market is bearish or not, it’s important to get prepared to meet the demand with scalable solutions.