Cryptocurrency Trends for 2024: Insights from Dexola CTO Eugene Potemsky | Posted by Dexola | Blockchain solution | Coins | January 2024

As Technical Director and Founder of Dexola, Eugene Potemsky He has been running a blockchain consulting and software development company for eight years. He started with a small team of 10 people and expanded the team to over 30 skilled coders who are constantly creating robust solutions to enhance blockchain-related products and services. Eugene is also recognized as a driven entrepreneur who plays a key role in securing long-term partnerships with global digital powerhouses. Trinetix Co., Ltd..

As a successful business owner and technology innovator, Eugene Potemsky has accumulated extensive knowledge in both the CeFi/DeFi sector and strategic management. This explains why his insights and predictions on the most promising initiatives in the blockchain industry in 2024, described in this article, can be so valuable and practical for Web3 leaders and inventors.

2023 has begun with incredible opportunities. On January 1st, there was an opportunity to make 100x profits on BTC without liquidation. We are now optimistic that this trend will continue beyond 2023!

Regardless of what the price looks like next year, we will continue to work hard. The Web3 ecosystem is not about price, it’s about technology that has the potential to improve most businesses. Now, let’s look at the trends that will shape the cryptocurrency industry in 2024.

The recent rally may have been triggered by BlackRock’s filing for a spot Bitcoin ETF and developments in the FTX bankruptcy case. We have seen other institutions begin to actively use blockchain technology, rather than simply exploring it. For example, JPMorgan launched JPM Coin for cross-border payments on its custom Onyx blockchain, and PayPal introduced PYUSD, accessible through its app. Additionally, more countries are exploring central bank digital currencies (CBDCs), more companies are considering investing in cryptocurrencies, and CME’s Bitcoin futures trading volume has surpassed that of Binance.

Institutions want to profit from cryptocurrencies, but they do so in a safe, legal and trustworthy way.

One. regulation All participants will be monitored by authorities and will be held accountable for any potential malicious acts or fraud. Incidents involving FTX, Terra, Celsius and others have highlighted the need for regulation to prevent the industry from remaining unregulated. Moreover, these organizations aim to minimize the occurrence of pump-and-dump schemes and various forms of price manipulation that are now all too common. A good example of this is the price chart of Teller (TRB).

2. Compliance This means institutions will have easier access to tools for working with cryptocurrencies, reducing excessive bureaucracy and high fees. The proposed Bitcoin ​​Spot ETF will allow the fund to gain exposure to Bitcoin through regular stock exchanges, while paying a management fee of less than 1% per annum.

3. Regulatory and compliance issues are the responsibility of local legislators; security It is entirely your responsibility. Since 2017, hackers have stolen more than $7 billion, much of it from North Korea. As Web3 developers, we must focus on strengthening security to minimize these attacks and protect decentralized finance. This includes creating standard security checklists, championing security audits, and sharing expertise to strengthen overall security.

Ethereum theoretically processes up to 120 transactions per second, assuming it only handles ETH transfers with a base fee. However, in reality, it processes around 12 to 15 TPS, which is nowhere near the thousands of transactions that VISA or Mastercard manage every second.

Many emerging protocols that can execute transactions in parallel have the potential to surpass centralized networks in performance. However, they share the common disadvantage of limited liquidity. Ethereum continues to be the most liquid Layer 1 (L1) chain, making it the preferred choice for most DeFi innovation projects, whether on native platforms or Layer 2 solutions (L2) on Ethereum.

L2 solves Ethereum’s scalability issues and high transaction fees in a few clever ways. This means speeding up block creation times, processing transactions in batches, and leveraging separate layers for data availability. Ease of bridging and compatibility with the Ethereum Virtual Machine (EVM) facilitates liquidity transfers from Ethereum to L2. By January 2024, the popular L2 chain had amassed a total locked value of over $10 billion, a significant amount to launch a unique DeFi ecosystem.

Looking ahead to 2024, we can expect L2 liquidity to increase further as various projects or institutions develop chains specifically tailored to their products.

With most centralized exchanges implementing know-your-customer (KYC) protocols, many DeFi and NFT platforms now offering the option to connect social media accounts, and Ethereum name services gaining popularity, the pseudo-anonymity of blockchain This is becoming increasingly clear.

Additionally, advanced transaction monitoring tools such as Crystal blockchain services allow law enforcement to identify virtually any individual in Europe, the United States, Asia or Australia who regularly uses cryptocurrency. Contrary to popular belief among many cryptocurrency users, DeFi and non-custodial wallets are not immune to tracking. RPC node providers may be legally required to collect personal data and share it with authorities, and Ledger has been found to track user data on its Ledger Live application.

Dexola expects the push for global cryptocurrency regulation to become more pronounced in 2024, spurring the development of new anonymization networks leveraging zero-knowledge proofs or similar technologies. Given Ethereum’s important role in the cryptocurrency ecosystem, these innovations could primarily be zk-rollup or other zk-based layer 2 solutions.