DFG CEO: Will 2024 be an important year for Ethereum?

Author: James Wo, Founder & CEO, Digital Finance Group

In the past few years, the blockchain and Web3 fields have made great progress in scaling solutions, cross-chain interoperability, DeFi, NFT, and Significant technological progress has been made in areas such as ERC-404.

I am excited about the upcoming I’m excited about innovations aimed at improving Ethereum’s scalability, privacy, and overall utility, and I believe rollups, along with the implementation of EIP 4884, are expected to bring significant improvements to second-layer rollup scalability. I also look forward to the advancement of DID, DeFi, DAO and hybrid applications. These areas mark key developments that will advance the Ethereum ecosystem, highlighting the importance of privacy and the diversity of Ethereum as a payment method and DApp governance platform.

Decentralization, open participation, censorship resistance and trusted neutrality are the basic principles of Ethereum. Technologies like rollups, zero-knowledge proofs, account abstraction, and privacy solutions can help enforce these core values ​​in Ethereum. I anticipate that Ethereum’s technology will be used more broadly to enable secure and private online interactions and to promote more democratic forms of governance.

Ethereum is a broad ecosystem that supports a wide range of applications. The emphasis on scalability, privacy, and decentralized governance highlights the ongoing efforts to realize Ethereum’s full potential as a decentralized platform for a new era of digital interaction and collaboration.

DFG has been investing in protocols, infrastructure and laying out ecological projects in 2023, such as DeFi, games, and NFT. In 2024, infrastructure and ecology are expected to undergo significant evolution and growth. Here are my expectations in these areas:

DeFi

• Regulation and Transparency: 2024 will likely see a focus on cooperation Compliance and regulatory clarity will especially affect the HyFi project. True DeFi projects will likely remain outside regulatory boundaries, but U.S. regulators are expected to crack down on HyFi.

• Stablecoin transaction volume: Forecasts indicate that on-chain stablecoin transaction volume may exceed Visa’s transaction volume, indicating that financial transactions are shifting to blockchain-based methods.

• Ethereum and transaction flow: It is expected that the proportion of ETH pledged for liquidity will increase, thereby enhancing the liquidity and practicality of the Ethereum ecosystem. In addition, the growth of private transactions and the popularity of gas-free transactions are expected to rise, and a significant increase in the number of layer-1 transactions for rollup is also expected.

Web3 Games

• Enhanced blockchain integration: expected to be more complex Make full use of blockchain elements in game mechanics and launch more diverse Web3 games in different genres. This year is also likely to see more collaborations between traditional gaming industry players and Web3 startups. ERC-404 has the potential to revolutionize the way in-game assets are owned, traded, and integrated across different games and platforms. Additionally, the interoperability facilitated by ERC-404 may make the gaming universe more connected and unified, allowing assets in one game to be leveraged or recognized in another, thereby enriching the overall gaming experience.

• Challenges for mainstream adoption: Attracting a larger player base remains a challenge, but improving developer tools to integrate Web3 elements and make blockchain components more intuitive may Drive wider adoption. ERC-404 fragments NFT ownership, which lowers the threshold for players to acquire and trade high-value in-game items, potentially leading to a more active and liquid in-game economy.

NFT

• Growth and Diversification: NFT expected to be Web3 Adoption in 2024 are the main drivers, but successful projects are likely to differ significantly from existing trends. The focus may shift to unique applications and broader digital ecosystem integration.

• Liquidity and Accessibility: ERC-404 enables NFTs to be traded on DEXs as fungible tokens while retaining their unique identity. This hybrid approach aims to solve some of the core issues facing the NFT market by increasing liquidity and accessibility. By solving liquidity issues and enabling fragmented ownership, the ERC-404 standard may appeal to a wider NFT market audience, including collectors and investors.

In 2024, the Web3 field is expected to demonstrate deeper integration, maturity, and adaptation to regulation. It can be expected that the interconnection between chains and ecosystems, coupled with the development of the gaming and NFT fields, will drive this year towards significant maturity and mainstream breakthroughs.