For cryptocurrency newbies, we know that watching cryptocurrency prices plummet to low levels is not easy. Even for veterans who have gone through their second cycle, watching the money that could change their life become less and less is no mean feat.
But we’re here for this technology, right?
Bear markets are generally considered to be periods of opportunity to make a fortune. Why do you say that?
This is because the opportunity to buy a project at a disproportionately low price relative to the project’s activity, development, and utility pervades the entire crypto world. Picking the right project isn’t easy, but the opportunity is clear.
This article is not a guide to getting rich, but if you take the time to learn and observe during a bear market, you may be putting yourself at an advantage.
This article will outline what the bubble is on the surface of the cryptocurrency market and what will lead the way in the next big bull run.
1. Application L 2
In the blockchain world, the call to support scalability and increase transaction throughput is very clear. During the last bull run, we saw a lot of attention and speculation surrounding Solana and other “alternative L1” blockchains. This is largely because Ethereum has not scaled properly to handle the bull market demand for its block space.
However, while many of these blockchains are touting their incredible speed and throughput, many users resent their continued downtime or poor functionality when demand is high. Ultimately, many of these blockchains fail because they are monolithic, not modular, which attempts to provide all security, decentralization, and throughput in a single product.
It is obvious (perhaps biased, but well-recognized) that such blockchains simply cannot support mass adoption. So, what are the solutions that can provide high throughput, high security, and high decentralization?
Walk into L2 …
L2 solutions can increase throughput, allowing the blockchain to scale while inheriting security from the main chain. Solutions like StarkNet and zkSync support “batching”, bundling thousands of transactions into a single transaction and publishing it on the main chain (Ethereum). As a result, the cost per transaction is reduced by orders of magnitude, and the speed at which the chain can process and the total number of transactions has increased.
So, what’s so great about this and why should you care? In order for this wonderful technology to enter the mainstream and be used as the backbone of the new internet, we need it to be fast, secure, and decentralized.
The L2 solution solves the speed problem, while the main chain provides security.
This will enable a wide range of use cases to reach the standards we need for global adoption. These use cases include video games that process thousands of microtransactions per second, instantly shared and inexpensive media, and money that can be traded in the blink of an eye.
Without L2 solutions, it is likely that blockchain will not reach its full potential for a long time. If we want to support large-scale applications, we need to provide a layer to easily handle the large number of transactions that come with it – L2 blockchain guarantees this core requirement.
Currently, L2 solutions like zkSync, Starknet, Polygon Hermez, Optimistic, and Arbitrum are all under active development, have made a lot of progress, and will soon meet the basic requirements needed for large-scale adoption.
2. DeFi and NFT are mature
The last bull run was largely driven by two things: DeFi and NFTs. Both are very powerful tools, but both are in their infancy – NFTs more so than DeFi.
With the market calming down, now is the time to improve these product performance and re-test product market fit.
So, why can decentralized finance spawn the next bull market?
DeFi is an open financial system that allows anyone, anywhere, to participate in any amount of money.
This not only presents a huge opportunity for the “unbanked group”, but also enables a variety of new fintechs to grow and mature. The problem is, “It’s still early days for decentralized lending. While decentralized lending cannot provide everything centralized lending can, it can go beyond the inefficiencies of traditional finance and take advantage of the creative thinking that Web3 attracts.” – – Bankless
The existing centralized financial system (CeFi) is a huge walled garden controlled by banks and governments. They choose who gets in and who gets how much. It doesn’t matter if you’ve met all their demands, they can easily reject you anyway, and they often do.
DeFi lending protocols and services eschew this permissioned gatekeeper, offering everyone the same financial services that banks currently offer.
It is 100% transparent and trustless. Everyone can view each other’s chips (anonymized by address) and can also assess the financial health of creditors/debtors against their own criteria. This means that you can dive into layers like never before, and understand the inner workings of banks in the new era of DeFi through a window.
This opens up a world of financial innovation, introducing new utilities, new opportunities, all so clearly visible around people who can make money, borrow money, or lend.
Then what is NFT? Just some pictures?
Why do they lead to the next bull market?
If you think so, you are very wrong. Non-Fungible Tokens (NFTs) are the Trojan horses of the world of true digital ownership.
During the last bull run, monkey pictures and pixel punks ruled the crypto world. This is just the beginning, a simple demonstration of the basic utility of digital ownership.
When we buy a shirt from a brick and mortar store, it’s yours, only you own that particular shirt and you have the receipt to prove it. It is “non-homogenous” in every sense and irreplaceable.
But before the advent of NFTs, non-homogenization was impossible in the digital realm. Sure, you can buy collectibles X, Y, or Z online, but they’re stored by the company you buy from on servers in their rented space. After using NFT, the assets are stored in your wallet, and your wallet is completely under your control.
This technology can and will likely disrupt a wide range of industries, from gaming and music all the way to home mortgages and money lending. It is hard to imagine that the scope is so large that borrowing this key technology, some other products and solutions will take us into another bull market, which we will outline below.
In conclusion, keep an eye on innovations in the NFT space and teams that are working hard to reach their full potential.
3. Use Web 3 single sign-on
Web3 single sign-on authentication allows the use of a single password and account without the need for personal information attached to millions of new websites and existing major news outlets and platforms.
Another important topic that often comes up in the news is privacy and data. Companies like Meta, Amazon, and Google have nearly all of your identifying information. They know everything about you – your password, date of birth, SSN, and everything you do on the internet.
They say it’s safe, but how many times has your data been stolen? It’s basically Westworld-level data collection, and most people allow it because there’s no better solution out there.
The data mining market is worth billions of dollars, and that’s how these companies make money. Let’s look at the numbers from Datamation:
“In 2021, the global data acquisition market is valued at $1.66 billion. It is expected to reach $8.21 billion by 2028, growing at a CAGR of 25.6%.”
What these trillion dollar companies do is sell your business. Not just random data about a certain woman, like 25, white, living in Ohio, but also your name, your email, your location, what products you bought, etc.
Web3 single sign-on solves this problem. It allows companies to collect data, learn about your preferences, and provide you with personalized information they think you’ll be interested in, but security will only be tied to who you are.
They can only have this data with your permission.
In my opinion, the future will be like this: create a Web3 wallet/identity, connect it to any of the hundreds of websites where you have an account. When you visit the website the wallet is connected to, click a “Login with Web3 Wallet” button – that’s it. One password manages it all while protecting your data and identity, and surfing the web just got easier.
4. The rise of Game Fi
Currently, in a traditional gaming environment, players either pay upfront, pay monthly, or purchase digital assets in free-to-play games.
However, no matter what game the player is playing, every action they make and every item/character they get is not their own, but is stored in the game and if the player stops playing or stops paying, these Assets are sitting on servers over which they have no control. Today’s game studios often have strict terms of service that prohibit players from making any “real money transactions.”
This means that all the time players put into the game and all the value in the game world is not theirs. The current system does not allow players to take advantage of these values, and if they try to bypass the rules, they could be permanently banned.
The time is ripe to disrupt this market. Allowing players to take ownership of their time and money invested in blockchain games through verifiable NFTs will create opportunities for both games and players.
We may soon be living in a world where moms stop saying “why waste time playing games” and say “I don’t understand what Jimmy does with these games, but he can think for himself Pay for everything you want.”
The gaming industry is currently more profitable than all other media industries combined, and so far, players have been blatantly excluded from this monetization formula. Web3 gaming is not a fairytale fantasy, but an emerging reality.
Unfortunately, there is currently a lack of playable finished products for Web3 games. But in this bear market, we should focus on games that have grown to be playable and have strong communities.
Here are some games you might want to try.
Some games I’m following closely:
* Influence : Space Strategy MMO
* Parallel : Sci-Fi card collectible game
* Loot Realms : A massively multiplayer on-chain game for Economics and Chivalry .
* Guild of Guardians : Mobile Multiplayer RPG
5. Music N FT
Making a living as an artist is harder than ever these days, although getting your music out is easier than ever.
Why? Simply put, streaming services and record labels take most of the money, leaving artists with a drop in the bucket.
As an artist, you have to be one of the lucky few to be picked by a record company or earn content revenue through social media algorithms. However, even with content generating revenue, you need to be at the top of the pyramid to grow long term.
In Web3, artists can better monetize their music through new monetization avenues, stronger connections to their communities, and more thorough ownership of their music.
NFT monetization can be achieved in different ways:
* Sell exclusive membership NFTs to provide fans with special moments with artists, such as VIP-only shows, limited edition merchandise, video chats with artists, and more.
* Sales revenue share NFTs, by taking a share of profits from future sales, allow artists to create freely without having to be subject to a lot of red tape that comes with partnering with record labels and streaming services.
The issue of an artist’s music ownership is at the heart of the current market. Record companies own most of the profits, and streaming services take a small percentage, which is then divided unfairly between artists and labels.
With NFTs and Web3, you as an artist can release music as an NFT, whether it’s a single or an entire album, and then let your fans buy music directly from you instead of going through a record label.
Through Web3 certification and NFTs, artists can leverage smaller fan bases to achieve sustainable artistic careers. You don’t need a global audience to buy tickets to watch your world tour – all you need is 100 loyal fans.
A prime example is Gramatik, who is already doing this. A well-known electronic music artist, Gramatik has been a champion of cryptocurrencies and blockchain, supporting empowering artists to own all of their music, giving them the freedom to create.
Free up content creators to create the way they want, where they like it, and have an audience.
In Web3, artists and content creators are no longer limited by the platforms on which they build their audiences, and no longer rely solely on advertising as a source of revenue.
Being able to provide their fans with a potentially free NFT giving them access to their private website, content, discord and community would also bring these content creators closer to their community and be able to bring their fans to any A new platform that unlocks new opportunities for unique web3 monetization.
Web3 is still in its early stages. There is still a lot of development and UX design needed to push us to the next stage.
We still need some big support to keep this ecosystem going:
* The L2 solution is fully operational and provides the base layer with the ability and utility to support transaction volume under large scale applications.
* Ethereum merged successfully, closed Proof of Work (PoW) and moved to Proof of Stake (PoS).
* Elevate the user experience that attracts new users to these platforms and products to a level comparable to the Web2 experience we enjoy today.
While we don’t know when the next bull market will come, we are coming out of a bear market. We can expect the next bull run to provide real utility and mass adoption.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/bankless-5-crypto-themes-expected-to-lead-the-next-bull-market/
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