Tokenization brings new perspectives of evolution for cryptocurrencies and 3 new factors should appear bitcoin-imminent-approval-according-to-jpmorgan-predictions/”>Bitcoin AND Ethereum during the next one bull run. In order to fully understand the 3 factors that we will introduce you to in the rest of this article, you need to understand that everything has a form data. Yours money is a matter of course, just like yours identifyyours personal data and tickets which you bought to watch your favorite singer’s concert with your friends.
It has been for several years blockchain and NFT they are considered a data storage solution and should occupy an increasingly important place in our daily lives in the coming years.
Although not all data needs to be stored on blockchainthe ability to store data on the blockchain is radically changing the way we store, share and use data in our daily lives.
Re: Non-financial blockchain use cases. pic.twitter.com/lYZFprXAry
— vitalik.eth (@VitalikButerin) May 27, 2022
Moreover, recently it seems that these needs in tokenization and data storage is coming to Bitcoin!
Ordinals continue to rise on Bitcoin and shake up the blockchain
In January 2023 Casey Rodamor made the protocol public Ordinal on bitcoin. In short, this protocol, which allows data to be permanently and immutably recorded on the Bitcoin blockchain, caused a real upheaval in the crypto ecosystem.
Protocol Ordinal was not the first protocol to allow this, but it was the one that gained the most popularity. Less than a year after the discovery of this protocol on Bitcoin, the enthusiasm for Ordinals does not seem to be waning. Indeed, several members of the Bitcoin community have conducted numerous experiments involving artwork, music, or even media articles about Bitcoin blockchain.
Ordinals is not a simple technical protocol. This protocol made it possible to change the state of mind that ruled Bitcoin and add a cultural touch. Since then, Bitcoin has been seen as a blockchain can be used to create projectsof application As well as moves cultural.
For cost reasons, not all data needs to be stored on the blockchain and this should benefit protocols like Taproot Assets which allows assets to be created on Bitcoin, but in a way that stores data outside of the blockchain. This significantly reduces costs.
Layer 2 will reduce costs and contribute to cryptocurrency adoption
If you were there during bull run of 2021you should remember Ethereum transaction fees… In 2021, it was necessary to pay several tens or even hundreds of dollars to make a transaction or mint NFT on Ethereum blockchain.
Expensive and slow transactions are very restrictive and during the next bullish phase, second layer blockchains (Layer 2) will be essential. THE layer 2 existed as early as 2021, but neither the market nor these blockchains were mature enough to be accepted and used by the general public. Now that the storm has subsided and there is calm in the cryptocurrency market, the second layer blockchains have been able to properly develop, stabilize and are now ready to welcome a new phase of the rise.
Additionally, there will be an update in the coming months EIP-4844 should arrive on the Ethereum network and will reduce transaction fees. This will further contribute to the adoption of cryptocurrencies and blockchain by the general public.
Solution abstraction, the main gateway for Web3 players
It will be in the coming years solving abstraction will be the main gateway for users and large traditional companies that want to develop in Web3. In some cases, decentralization is more of a hindrance than a help.
For example, for purposes tickets or tokenized credentialsblockchain added value it does not lie in decentralization system. In this particular case, the added value of the blockchain consists of simplify user experience by simplifying processes that were previously very difficult to use and participating in fee reduction for individuals and companies.
In 2021, solving abstraction were missing bridge in the cryptocurrency ecosystem, but now these solutions are ready to use.
Abstraction solutions are not about doing away with it decentralization, but have a choice. Those who want to remain 100% decentralized can do so, but those who don’t want decentralization can’t.
Abstraction solutions are rarely designed, but they are indispensable for traditional businesses who want to do a the first step in Web3. In order for blockchain and cryptocurrencies to become more widely adopted, it is important to make it easier for businesses.
To date, the main blockchains are considered to be low complexity platforms for use and ready for adoption by individuals and traditional global businesses.
THE OrdinalTHE layer 2 and solving abstraction are factors that will be involved blockchain development and cryptocurrencies future. These 3 factors will promote adoption cryptocurrencies by the general public and enable the development of traditional businesses in Web3 and facilitate their processes thanks blockchain if decentralization.