Crypto Summer 2024: A Different Wave of Cryptocurrency Revolution

• A Retrospective Look at Blockchain and Crypto Predictions
• Building the Future with Ethereum
• Predictions for the Future of Crypto
• A Sustainable Summer for Blockchain
• Convergence of Stablecoins and Central Bank Digital Currencies
• Progress in Industrial Applications

A Retrospective Look at Blockchain and Crypto Predictions

While assessing past visions of the future, one recognizes that these hypothesis were often fueled by wishful thinking. There's truth in the words of Oscar Wilde: resisting anything, except temptation, is possible. Making predictions, as long as they're not about future events, is a similar paradox. Despite some inaccuracies in yearly forecasts, certain key predictions have proven to be generally accurate. This is no passive observation, but an endeavor to actively shape the future through blockchain business and technology.

Building the Future with Ethereum

This vision of the future is constructed upon the public Ethereum$2,315 -2.42% ecosystem, complete with robust, regulatory-compliant business transactions and significant privacy protections. In this open, censorship-resistant model free from monopolies, a universal business infrastructure can be designed that simplifies and ensures consistency in business interactions. In this future scenario, financial services seamlessly integrate to serve their ultimate purpose: directing capital towards useful projects ranging from startups to green energy initiatives.

While the progress may seem slower than optimal, it is tangible. In a decade-long tenure in the sector, seeing eight years at EY in a dedicated role, enterprises have been observed to adopt tokenization and Ethereum has established itself as the global standard. Although permissioned chains are not completely obsolete, they're slowly phasing out. Enterprises have begun accepting fiat currencies in conjunction with crypto, and the scalability issues have been largely tackled through L2s. Further progress on the privacy front has been observed with the development of zero-knowledge tools and applications.

Predictions for the Future of Crypto

The journey towards a more stable, secure, and sustainable future for blockchain and crypto is not over. However, the upcoming implementation of the Markets in Crypto Assets (MiCA) in Europe from June 2024 signifies an important milestone on the path towards the next blockchain uprising. Three predictions are provided about the impending transformation - or summer - in the crypto world.

A Sustainable Summer for Blockchain

One expectation is that the upcoming wave will be more enduring and sustainable. Prior blockchain expansions have been influenced by macroeconomic changes, but Ethereum ecosystem's capacity limits, high fees, fraud, and limits of institutional capital pools have had a bigger impact. The current situation could be different. L2s have extended Ethereum's capacity, regulators globally unlock institutional capital flows like pension funds, and investors gain increased protection from scams and fraudulent activities.

Convergence of Stablecoins and Central Bank Digital Currencies

The second prediction envisions a convergence of regulated stablecoins and Central Bank Digital Currencies (CBDCs) adopted by the world's central banks. This would not express a sudden embracement of decentralization and individual control, rather it would be a pragmatic choice. Nearly all the CBDC plans currently are coupled with centralized, tokenized systems which have very limited real programmability. Central Banks find CBDC prototypes and pilots technically functional, but their added value over existing real-time gross settlement systems is minimal.

Progress in Industrial Applications

The final hope is for industrial applications to continue their progression. Despite being the slowest and least glamorous, progress is indeed occurring. Even though corporations may initially be unnerved by scandals, it is hoped that as these memories fade and solutions improve, there will be a steady increase in adoption.

While it is not certain that summer will arrive in 2024, there are definite signs of spring in the air.

Edited by Jonathan Stoker