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“2022 Is All About Ethereum,” Says The Leader Of Ey’s Blockchain Unit

Brody is no stranger to innovative technology, having been responsible for “EY projects and investments in blockchain technology across consultancy, audit, and tax business lines.” With senior positions in IoT, supply chain operations, and business strategy, it would be an understatement to suggest that his opinion is weighted in the turbulent world of Blockchain.

His thesis is based on the fact that “just about everything new and important happening in the world of blockchain right now is happening in the Ethereum environment,” with him focusing on three major developments that would fundamentally empower the Ethereum ecosystem.

The first is the claim that “decentralised autonomous organisations (DAOs) represent the future of how communities, missions, and businesses are converging in a single framework.” This transition in community organisation has been occurring for some time, but Brody believes that 2022 will be the year that, for a variety of reasons, DAOs will become the go-to framework for the creation of new entities.

The convergence of DeFi and its adoption into mainstream finance will be the second reason. According to Brody, by 2022, we will “see the introduction of some decentralised identity management components that add a layer of know your customer (KYC) to DeFi, as providers try to meet regulatory needs without introducing centralization.” This would allow regulators to address the more worrisome parts of DeFi without jeopardising the organization’s core goals of openness and decentralisation.

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Last point is Ethereum’s nature as a Layer 1 network, which has led to it becoming the principal blockchain “that is used to connect with other blockchains (layer 2 networks).” As a result, any profit generated by projects based on the Ethereum ecosystem eventually strengthens the system.

Brody elaborates on which Blockchain initiatives will win in 2022, claiming that “the Ethereum ecosystem itself is the first significant winner.”” Regardless of whichever Layer 2 program built on Ethereum will be the most successful, their success invariably feeds into the success of the Ethereum ecosystem as a whole with “the absolute dominance of Ethereum in both developer skills and participating capital is hard to argue.”

The second winner of 2022, according to Brody, will be “the Ethereum-ecosystem native market leaders, particularly in DeFi and DAOs, and non-fungible tokens.” (NFTs),”

The third and final winner of the year will be “regulators.” This is due to the fact that “the intense regulatory focus on stablecoins and DeFi signals what are likely to be very positive changes in the year ahead.”

We may see Ethereum emerge to the top in 2022, following last year’s proposal for a coordinated global policy on cryptocurrencies and Blockchain initiatives.