Coin Bureau analyst Guy, a million-subscribed crypto YouTube channel, predicts that Ethereum-based second-layer blockchains will play a dominant role in crypto payments. Selected altcoins such as MATIC are in the foreground in the analyst’s predictions.
Coin Bureau says 2023 will be the year of second tiers like MATIC
The crypto analyst said that second-tier projects built on Ethereum will dominate crypto payments this year. Layer 2 refers to a secondary framework or protocol built on top of an existing Blockchain system. The main purpose of these protocols is to solve the transaction speed and scaling challenges faced by large cryptocurrency networks. Coin Bureau analyst Guy thinks projects operating in this space will stand out for a number of reasons:
My prediction for 2023… is that second-tier crypto payments will become more common. This will again be due to better frontend scripts, regulatory clarity that increases liquidity, and most importantly, increased scalability that eventually enables crypto payments.
Guy specifically says that layer-2s will become the hub of crypto payments. He also predicts that these projects will play a critical role in their increased adoption. Tier-2s are projects that aim to increase the speed (TPS) of a smart contract platform. Here is the list of projects and cryptocurrencies currently leading the field:
Why second tier projects?
The analyst put forward the technologies of the projects in this regard. He also expressed that he agreed with what Ethereum founder Vitalik Buterin had to say about it. Guy answers this question in part of the video:
This prediction comes from a series of headlines I’ve seen over the summer about Ethereum founder Vitalik Buterin talking about how layer-2s on Ethereum will power crypto payments. This makes sense given that Ethereum is the most secure base layer to have for a payment system alongside Bitcoin.
The analyst also believes that an upcoming upgrade to the smart contract platform Ethereum will increase the likelihood of tier 2 dominance in crypto payments. Ethereum Improvement Proposal 4844 (EIP 4844) aims to improve network scalability using “shard blob transactions”. The analyst summarizes the expectations here as follows:
Also, developers will implement the Ethereum improvement proposal, or EIP-4844, sometime next summer. For those who don’t know, EIP 4844 will increase the scalability of Layer-2s on Ethereum by 10x to 100x. Given that most Layer-2s are already processing thousands of TPS, such an increase would put them on par with Visa.
Why is Polygon (MATIC) in the foreground?
As you follow on Kriptokoin.com, Polygon maintains its position in the market with a series of high-level partnerships it signed last year. Meta was among the brands working with Reddir, Instagram, Disney, StarBucks, Polygon. This ensures that the Ethereum scaling solution remains a leader in this space.