3 principles that will carry Bitcoin and Ethereum throughout the upcoming bull market

DEvf...JzWR

22 Jan 2024

In the wake of 2021, the cryptocurrency landscape is undergoing a paradigm shift, moving beyond the realm of financial decentralization to embrace the tokenization of everything. This evolution, driven in part by the rise of non-fungible tokens (NFTs), sets the stage for three compelling theses that are poised to shape the upcoming bull market.

1. Ordinals and Multi-Asset Protocols Transform Bitcoin into a Cultural Canvas

The introduction of the Ordinals protocol in January 2023 marked a significant milestone for Bitcoin. This protocol allows the permanent insertion of various file types into the Bitcoin blockchain, turning it into a canvas for creative projects. In less than a year, the community has experimented with embedding music, artwork, journalistic articles, and video games on the world’s leading blockchain.
Beyond Ordinals, protocols like Taproot Assets enable the creation of diverse assets on the Bitcoin network while keeping most information off-chain, addressing the challenge of expensive and inefficient on-chain storage. This shift in perspective signifies a cultural movement where builders view Bitcoin as a platform for innovation and creativity.

2. Layer-2 Blockchains Take Center Stage in Mainstream Adoption

The inefficiencies and high transaction fees experienced during the 2021 bull market, especially on Ethereum, highlighted the need for more scalable solutions. Layer-2 blockchains, designed to scale layer-1 blockchains, are set to play a pivotal role in the next bull market. While these solutions have been around for years, the maturity of both the technology and the market is now aligning to make them a practical choice.
With the lessons learned from the previous cycle, developers and companies are now more convinced of the stability of layer-2 solutions. The imminent implementation of EIP-4844 on the Ethereum network is expected to further reduce transaction costs, making layer-2 networks even more invisible and robust. This development is crucial for attracting and retaining a mainstream audience.
Comparison of gas fees before and after EIP-4844. Source: IntoTheBlock

3. Abstraction Solutions Bridge the Gap to Web3 for Everyone

As the tokenization of everything progresses, the importance of decentralization varies across different use cases. Abstraction solutions emerge as a crucial bridge, simplifying user experiences and making complex processes more accessible. Whether it’s creating semi-custodial wallets with social logins or eliminating concerns about gas fees, these solutions are essential for expanding crypto beyond a technical niche.
Moreover, abstraction solutions play a pivotal role in facilitating the entry of traditional companies into Web3. By making it easier for builders to start without requiring deep knowledge of blockchain languages, such as Solidity, these solutions contribute to the broader adoption of blockchain technology.
The Technology Adoption Life Cycle highlighting the chasm between early adopters and the mainstream market. Source: “Crossing The Chasm” by Geoffrey A. Moore

Conclusion:

As major blockchains transition into platforms for multi-asset consensus, the upcoming bull market is poised to witness a surge in creativity, scalability, and mainstream adoption. The integration of Ordinals and multi-asset protocols, the dominance of layer-2 blockchains, and the widespread use of abstraction solutions mark the beginning of a new era for Ethereum and phase 2 for Bitcoin. Welcome to a future where the layers are more invisible and less complex, unlocking the true potential of blockchain technology.
The 1000pip Climber Forex System offers automated detection of trading opportunities with entry, stop loss, and take profit values provided. Priced at $97 with a lifetime license, it simplifies FX trading, notifying users visually, audibly, and via email for easy navigation of the market. This system is designed for mechanical follow-through, requiring no monthly payments with high ratings.
Goodbye to 9 to 5 Transform Your Financial Future with Crypto Cash Flow. Copy, Paste, and Profit with Our Cryptocurrency Cash Blueprint And So Many Ways — Start Your Journey Today!
ABSOLUTE BEGINNER (WITHOUT ANY SKILL OR EXPERIENCE) HOW TO MAKE HUGE PROFITS IN A SHORT TIME WITH CRYPTO! I’ll Show You How to Make Huge Money with Totally Automated Crypto Trading Robots And More.

95

Cryptocurrency
Blockchain
Bitcoin
Ethereum
Web3

95

Follow

Written by Shantanu Gupta

1.93K Followers
·
Writer for
Coinmonks
Crypto, Blockchain, and Metaverse Content Creator | Encouraging You to Become a Profitable Crypto Trader💵🚀 and Explore the Digital Frontier.