The Chinese cryptocurrency VC, A&T Capital, released a detailed document with thorough research on the crypto space in 2022 and the ‘new paradigm’ web3 technology that will transform the internet in 2023.
Anticipated web3 technology set to improve blockchain scaling
The document had the following predictions regarding web3 this year;
- zero-knowledge proof layer2
Zero-knowledge proof is a L2 that executes transactions offline using mathematics and cryptography. It proves that a computation was performed correctly without revealing further information. A&T claims it is more efficient since it can handle 100x more capacity than optimistic rollups. ZK L2 also costs much lower to operate.
Even with the high operating speed, ZK rollups inherit the security of the Ethereum network as per A&T. Although they are harder to program and less production-ready, A&T concludes that ZK L2 is the long-term solution for blockchain scaling and to support mass adoption.
- Parallel computing
According to A&T, parallel computing is a solid solution to traditional high-performance computing scenarios. This technology does parallel computations on transactions that touch non-overlapping contracts. Therefore, A&T claims it performs best when maximizing blockchain computations and will prove crucial for blockchain scaling.
- Modular design
The modular design thesis specifies that maximum efficiency will be achieved in computing transactions if each unit can perform simple operations. With this, A&T has termed it the most popular dissertation that can be used for releasing the visioned potential of blockchain in web3.
- Application-specific blockchain
A&T has described the application-specific blockchain as a “good fit” for solving the infrastructural problem brought about by increasing demand for blockchain technology across various industries. They are high-performance, high-value capture potential, and highly customizable.
Other web3 improvements to be observed this year
Simplifying blockchain interactions
The increasing need for more secure and efficient bridges across blockchains can be solved by zero knowledge. This need is due to inefficiency in current interoperability between blockchains.
A&T adds that blockchain interactions can be simplified through node player and decentralization with distribution validator technology (DVT).
Transparency and decentralization
Many exchanges are continually publishing proof of reserves to ensure transparency and inspire user confidence. The company stated that this trend is expected to continue in 2023.