Bankless: 5 key themes and trends for the next bull market

Bear markets are the best chance to build wealth. The tourists (speculators) have all left, and now is the low season. This is a time for builders to bury their heads in their work, and a time for investors to bet on the next big trend.

The recent bull cycle has seen the rise of DeFi and NFTs, both of which have seen a surge of innovation, interest and capital.

So, what about the next round? What will be the key themes and trends in the next bull market?

Predicting the future is hard, but here are some illuminating thoughts.

We know it’s not easy for newcomers to watch prices plummet. Watching the money dwindle is no mean feat, even for veterans who have been through bull and bear.

Although we’re here for technology, right?

Bear markets are often referred to as opportunities to get rich, but why?

This is because the opportunity to buy into a project at an extremely low price compared to its activity, development, and utility abounds throughout the crypto space. It’s not easy to choose the right project, but the opportunity is clear.

Bankless: 5 key themes and trends for the next bull market

This article is not a guide to getting rich, but if you take the time to learn and observe in this bear market, you are likely to be in a good position.

This post will outline what’s bubbling on the surface of the crypto market and which tracks will lead the charge in the next big bull run.

1. Adopt L2

Bankless: 5 key themes and trends for the next bull market

In the blockchain space, there is a clear, current push to enable scaling and increasing transaction throughput. During the last bull run, we saw a lot of interest and speculation around projects like Solana and other Alt L1s. This is largely because Ethereum is not yet properly scaled to handle the bull market demand for its block space.

However, many of these blockchains, while boasting incredible speed and throughput, suffered from persistent outages that left many users indignant, or underperformed during times of high demand. Ultimately, many of these blockchains fail because they are monolithic, not modular, and they try to provide all security, decentralization, and throughput in a single product.

This doesn’t work at scale, and it’s pretty obvious (opinions are biased, but well-supported). So, what is the solution that provides high throughput, high security, and high decentralization?

Enter L2

Layer 2 solutions provide the ability to increase throughput, thereby increasing the scalability of the blockchain, while inheriting the security of the main chain. Solutions like StarkNet and zkSync enable “batch processing”, bundling thousands of transactions into a single transaction and publishing it to the main chain (Ethereum). This reduces the cost per transaction by orders of magnitude and increases the speed and total transaction volume that can be processed on-chain.

So why is this so amazing and why should we care? In order for this amazing technology to penetrate the mainstream and be adopted as the core technology 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 the security.

This will enable a wide range of use cases to operate to the standards we need in order to achieve worldwide adoption. Examples of this include video games that process thousands of microtransactions per second, media for instant and cheap sharing, and monetary transactions that can be completed in the blink of an eye.

Without a Layer 2 solution, it is likely that the full potential of blockchain will not be realized for a long time. If we want to gain adoption, we need to provide a layer to easily transact while allowing mass adoption – Layer 2 provides this core requirement.

Currently, Layer 2 solutions such as zkSync, Starknet, Polygon Hermez, Optimism, and Arbitrum are under active development, with a lot of progress, and will soon meet the basic requirements needed for adoption.

2. The maturity of DeFi and NFTs

Much of the last bull market was driven by two things: DeFi and NFTs. Both are very powerful tools, but both are in their infancy – NFTs have advantages over DeFi.

With the market calm, now is the time for these products to refine their capabilities and re-test products for market fit.

So why does decentralized finance lead to the next bull market?

DeFi is an open financial system where anyone, anywhere, and any amount of money can participate.

Not only does this provide a wealth of opportunities for the unbanked, but it also enables a variety of new fintechs to grow and mature. The problem is, “Decentralized lending is in its early stages. It doesn’t offer everything that centralized lending does, but it outperforms the inefficiencies of traditional finance and comes close to the creative minds attracted to Web3”.
– 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 money. Even if you meet all their demands, they can still easily turn you off, and often do.

DeFi lending protocols and services circumvent this licensing threshold, offering the same financial services that banks currently offer everyone.

It is 100% transparent and trustless. Everyone can view each other’s chips (anonymized by their address), as well as assess the creditor/debtor’s financial health according to their own criteria. This means that you can peel back layers as before and have a window into the inner workings of banks in the new era of DeFi.

This opens up a world of financial innovation, introducing new utilities, new opportunities, and clarity around who can make money, borrow money, or put money away.

But what about NFTs? Aren’t those just jpegs?

Why do they lead to the next bull market?

If you think so, you are dead wrong. NFTs are Trojan horses to the world of true digital ownership.

During the last bull run, monkey photos and pixelated punk ruled the universe. And this only marks 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-homogeneous” in every sense.

However, this was not possible in the digital realm until the advent of NFTs. You can of course buy X, Y or Z’s collectibles online, but they are stored on servers rented by the seller’s company. With NFTs, the asset lives in a wallet that you control.

Industries that this technology can and is likely to disrupt include gaming, music, and home mortgage and currency lending. The scope is unimaginable, and some of the other products and solutions outlined below that will lead us into the next bull market use this key technology.

In conclusion, keep an eye on innovations in the NFT space and those teams that are working hard to reach their full potential.

3. Adopt Web3 single sign-on

Single sign-on web3 authentication allows a single password and account to be used on millions of new websites and existing major news organizations and platforms without the need for additional personal details.

Another huge topic that keeps popping up in the news is privacy and data. Companies like Meta, Amazon, and Google pretty much own your identity. They know everything about you – your password, date of birth, SSN, everything you say and do on the internet.

They say it’s safe, but how many times has your data been compromised? It’s basically Westworld-level data collection, and most people just allow it to happen because there isn’t a better solution out there.

The market for data collection is worth billions of dollars, and that’s how these companies make money. According to Datamation data:

“The global data collection market is valued at USD 1.66 billion in 2021. It is estimated to reach USD 8.21 billion by 2028, growing at a CAGR of 25.6%.”

These trillion-dollar companies are in the business of selling personal data. It’s not just random data about a 25-year-old, white, woman living in Ohio, it’s your name, your email, your location, the products you buy, and the list goes on.

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’re interested in, while keeping your identity safe.

They can only have this data with your permission. (For more information on personalizing data sharing, check out the Brave browser).

The future looks to me like this: create a web3 wallet/identity and link it to any hundred websites where you have an account. When you visit any website, click a button — “Login with web3 wallet” — and it’s OK. It’s one password that can rule all websites while protecting your data and identity, making it easier for you to surf the web.

4. The rise of GameFi

Currently, in a traditional gaming environment, players either pay for the game up front, pay monthly, or purchase digital assets in free-to-play games.

However, no matter what game they play, every action they make and every item/character they get is not theirs. It’s stored by that game, and if a player stops playing or pays, it just sits dead on a server they can’t control. Current 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 added to the game universe does not belong to them. The current system does not allow players to take advantage of it, and if they try to circumvent the rules, they will be permanently banned.

The time is ripe to overturn this market. Allowing players to take ownership of the time and money they put into blockchain-powered 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 your time playing games” and say “I don’t understand what Jimmy does on these games, but he can do it all for him to pay for things.”

The gaming industry is currently more lucrative than all other media industries combined, but until now, gamers have been left out. Web3 gaming isn’t some fairytale fantasy, it’s a reality that’s already taking shape.

Unfortunately, there is currently a huge lack of fully-fledged playable web3 games. But in this bear market, watch out for games that are highly playable and have strong communities.

These games are what you want to try.

Some games that I follow closely are:

  • Influence: Spatial Strategy Massively Multiplayer Online Game
  • Parallel: Sci-Fi Card Game
  • Loot Realms: A massively multiplayer on-chain game of economics and chivalry
  • Guild of Guardians: Mobile RPG Game

5. Music NFT

Bankless: 5 key themes and trends for the next bull market

It’s harder than ever for an artist to make a living these days, although the ability to spread your music out is easier than ever.

why? Simply put, streaming services and record labels take most of the money, leaving little for artists.

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’s algorithms. However, even with content creator income, you need to be at the top of the charts to continue living.

In Web3, artists can better monetize their music through new monetization channels, stronger connections to the community, and fuller ownership of the music.

Monetizing with NFTs can be done in a few different ways

  1. Selling exclusive membership NFTs to give fans access to artists such as VIP access to shows, limited edition merchandise, face-to-face opportunities with artists.
  2. Selling revenue-sharing NFTs, sharing a percentage of the profits from future sales, allows artists to work freely without being subject to a lot of red tape that comes with working with record labels and streaming services.

music ownership

The ownership of an artist’s music is the crux of the problem in the market right now. Record labels own most of the profits, then streaming services pay a small percentage, which is then divided unfairly between artists and labels.

With NFTs and web3, artists can release music as NFTs, whether it’s a single or an entire album, and fans can buy music directly from the artist without going through a record label.

Bankless: 5 key themes and trends for the next bull market

a tighter community

With web3 certification and NFTs, artists can make ends meet with a small fan base. You don’t need a global audience to buy your world tour – all you need is 100 loyal fans.

A prime example is artist Gramatik, who has long championed cryptocurrencies, blockchain and empowering artists to own their own music catalogs and create freedom.

Unleash content creators to create how and where they want, while being able to have their own audience.

In web3, artists and content creators are no longer bound by the platforms on which they build their audiences, nor are they solely dependent on advertising as a source of revenue.

Being able to offer their followers a basic, possibly free NFT that gives them access to your private website, content, discussion boards, and communities will enable these content creators to get closer to their community and connect their followers Take to any new platform and unlock new and unique web3 monetization opportunities.

The road ahead is turbulent

It’s still early days for web3, and it takes a lot of development and UX design to push us to the next level.

To support this growing ecosystem, some big things are needed:

  • Layer 2 solutions to be fully functional and provide the base layer with the ability to support transaction volumes to support mass adoption and utility
  • Ethereum successfully merged, closed Proof of Work (PoW), and switched to Proof of Stake (PoS).
  • Bringing new users to these platforms and products improves the user experience to a level comparable to the web2 experience we enjoy today.

We don’t know when the next bull market will come. But we are working hard to get out of the bear market and expect the next bull market to provide real utility and mass adoption.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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