Industry experts discuss blockchain expectations, Web3, and identity verification for 2023

By Puja Sharma

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.

Speaking of the current crypto space in India and the expectations for 2023, Leon Foong, Head of APAC, Binance said, “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 merMerkle-sumees and ZK-SNARKs are being used to build a proof of reserves which we hope will bring added trust into the digital asset space.”

“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.” Foong added.

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.

“Just like humans have solved many problems with innovation, so will we with sustainable development. 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%. Also, Web3 made gigantic strides to become an applicable technology of the future. There is enough excitement for 2023 to innovate our way out of the environmental crisis we face.” Pratik Gauri, Co-founder & CEO, of 5ire, said on blockchain networks making a futuristic approach in the upcoming year through value creation.

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,” Gauri added.

On the trends witnessed in the Web3 and crypto ecosystem in 2022 and the outlook for 2023, Raj Karkara, COO, ZebPay, While market fluctuations and unfavorable 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 the mass adoption of the asset class.

One key item on the wish list of all Web3 and blockchain players this year would be a favorable 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.” Karkara added.