2022 a big year for Web3 and crypto space

Web3 and crypto, while still in their nascent stage, have taken the world by storm and investors across the globe are realizing the multitude of opportunities it offers. 2022 has been a big year for the Web3 and crypto space, with new projects and protocols launched while existing ones continue to grow and evolve.

The Ethereum upgrade was one of the major developments in the crypto industry, making the blockchain more scalable, secure, and sustainable paving the way for more efficient decentralized applications to be built. Transparency in this industry has become a big area of focus and blockchain technologies such as merkle-sum trees and ZK-SNARKs are being used to build proof of reserves which we hope will bring added trust into the digital asset space.

Talking to Bizz Buzz, Leon Foong, Head of APAC, Binance, says, "In 2023, we expect to see the continued development of Web3 infrastructure with continued attention to investor education and awareness."

To build a robust Web3 infrastructure, security is very important, and Binance plans to continue with initiatives such as Global Law Enforcement Training Program, disclosing Binance's hot and cold wallet addresses through Proof of Reserves, and establishing the Industry Recovery Initiative (IRI) to protect consumers and rebuild the industry, he said.

The crypto winter of 2022 has kept everyone tamed, but it was also the year when one of the biggest blockchain networks, Ethereum, switched from the Proof of Work consensus algorithm to the Proof of Stake consensus algorithm, cutting their electricity consumption by 99 per cent. Also Web3 made gigantic strides to become an applicable technology of the future.

Pratik Gauri, Co-founder & CEO, 5ire, says, "Just like humans have solved many problems with innovation, so will we with sustainable development. There is enough excitement for 2023 to innovate our way out of the environmental crisis we face."

The sustainability crisis is existential and needs a new type of digital product that is co-owned, co-created, and co-run. This constitutes the third era of the internet and is defined by decentralization, declining trust in institutions, and a new way of looking at value creation and value capture. Blockchain technology will be the defining aspect of Web 3.0.

When empowered with such autonomy, people will partner with the government, enabling citizens and organizations to play a meaningful role in shaping a future where profit and purpose go hand in hand. That is our definition of the 5th industrial revolution where we transform ourselves from profit to purpose.

In 2022, the crypto industry witnessed landmark events including the Ethereum Merge Upgrade, the launch of Central Bank Digital Currency (CBDC) as well as the government of India's new crypto tax policy.

While market fluctuations and unfavourable tax implications have affected overall trading volumes and sentiment, investor education has helped in increasing the adoption of crypto and will continue to be a priority. Moreover, for any new asset class in its nascency, a fair amount of volatility is to be expected.

In 2023, it will be the responsibility of all players in the crypto and Web3 ecosystem to foster a sense of security among its consumers. Putting in the right protocols and practices in place to avoid the impact of black swan events will be crucial to success. Those businesses that operate with transparency, strong ethics and values, while protecting consumer interests will succeed. The year will weed out businesses with weaker models and practices. Sustainability and financial inclusion will be strong themes, promoting mass adoption of the asset class.

Raj Karkara, COO, ZebPay, says, "One key item on the wish list of all Web3 and blockchain players this year would be a favourable regulatory framework that will protect investors while encouraging innovation to create newer avenues to transform business across the spectrum, for all stakeholders in the industry to thrive. We hope India's G20 Presidency will help in establishing an innovative regulatory framework based on new technologies and will assist in creating a favourable environment for the crypto industry."

2022 was filled with news about crypto meltdowns, synthetic ID fraud, phishing, fraud rings, UPI fraud, money laundering, collusion, OTP theft, and referral abuse, to name a few. Online fraud has exploded as attackers constantly evolve their techniques for maximum benefit, leading to financial and reputation loss for businesses across industries.

Ranjan R Reddy, Founder & CEO of Bureau, says, "In 2023, businesses must look beyond traditional approaches and opt for digital-first technologies that combine AI, machine learning, behavioural biometrics and device intelligence. It will also be crucial for all stakeholders to collaborate and create a pro-privacy data infrastructure."

In the wake of rising data leaks and alarming identity theft incidents, the key focus for organisations across sectors will be to ensure trust and security by creating an underlying risk infrastructure that will help protect user data, simplifying the user journey by creating a secure, transparent and frictionless experience across sectors. This will further pave the way for innovation and scalability.