Popular crypto analyst believes layer-2 projects that are built on Ethereum (ETH) will dominate crypto payments in 2023.
Guy from the Coin Bureau tells about how crypto will grow in popularity this year.
“My fifth prediction is that crypto payments will be more common in 2023,” This will happen again due to a combination of better frontends and regulatory clarity. This will increase liquidity and, most importantly, an increase in the scalability that finally allows crypto payments to be possible.
Guy claims layer-2s will play an important role in increasing the adoption of cryptocurrency payments. Layer-2s, crypto projects, are designed to increase the number of transactions per second that a smart-contract platform can process.
“This prediction was based on a series of headlines I saw last summer about Vitalik Buterin, Ethereum founder. He said that layer-2s in Ethereum would power crypto payments. This makes sense, given that Ethereum is the most secure payment system base layer other than Bitcoin.
He believes that the rise of layer-2 dominance in crypto payments will be more likely as a result of an upcoming upgrade to the smart contract platform Ethereum. The Ethereum Improvement Plan 4844 (EIP 4844), is a proposal to improve the blockchain’s scalability via “Shardblob transactions”.
In addition, developers will implement the Ethereum improvement plan, or EIP-4844, sometime next year. EIP 4844 is an EIP that will increase the scalability and performance of Layer-2s on Ethereum. It can be used to increase their scalability by as much as 10x or 100x. Because most Layer-2s process thousands of TPS already, this increase will bring them up to par with Visa.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
