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Blockchain Capital: Which directions are you bullish on Web3 in 2023?

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What are the verticals that could take off in 2023, the frameworks to invest in them, and the tools to make Web3 development easier to build?

原文标题：《 What Are Crypto VCs Bullish on in 2023? 》

Original article by Revelo Intel

Deep Tide TechFlow

In this podcast, Moderator Jason Choi talks with Blockchain Capital partners Kinjal Shah and Yuan Han Li about verticals that could take off in 2023, the framework for investing in verticals, and making Web3 To develop tools that make it easier to build.

Here are our notes from the podcast.

introduce

The FTX crash proves that we need decentralized systems.

Kinjal Shah joined Blockchain Capital in 2018 after working at Tradfi, focusing on consumer infrastructure as part of the investment team, specifically in the NFT and DAO space.

Yuan Han Li has been with the Blockchain Capital team for eight months, focusing on scaling and decentralizing infrastructure.

Explore the consumer vertical

The focus is on consumer infrastructure and providing infrastructure to make it easier for users to access applications in the space.

NFT infrastructure is well developed, with Stardust, Upshot focusing on NFT pricing data, and WorkDAO addressing compliance challenges.

The cryptocurrency market is not ready for consumer-facing apps, such as Airbnb or ride-sharing platforms.

The user experience of wallets needs to improve, and developers need to feel more comfortable integrating in-game assets into their games.

The focus should be on taking initial steps to improve infrastructure and prepare it for consumer adoption.

Account abstraction improves the wallet user experience

Account abstraction is a concept within the Ethereum community that focuses on making private keys less important in the blockchain ecosystem.

Account abstraction aims to find a way to make private keys less critical, for example by using programmable accounts that can be controlled by multiple keys or other security methods.

This approach could make the blockchain more user-friendly and accessible to users, while still maintaining the core value of self-custody.

Account abstraction allows programmable wallets and features such as private key rotation and multiple private keys with different permission levels.

Private keys are a major barrier to new users using cryptocurrencies, and account abstraction may be the best solution to reduce the importance of private keys.

Unlock more use cases for NFT

The concept of dynamic NFT has the potential to unlock a whole host of new use cases.

Dynamic NFT brings programmability to NFT, allowing metadata to change over time, which can enable applications such as appearance over time, or financial contracts with expiration dates.

Data tracking, indexing and special infrastructure such as Uniswap V3 positions are all important sub-sectors.

The application develops its own chain and Rollup

In choosing between chaining and Rollup, there are trade-offs such as sacrificing composability, sovereignty issues, and cost capture.

Eventually, Rollup will prevail over the application chain, and the application will choose to become more autonomous through Rollup.

Some projects, such as Ethereum and Solana, are constrained by the roadmap, and from a business perspective, it is better to have more control over value capture and product experience.

It makes more sense to use app chains for games.

Of course, it depends on the application and the project choosing one of these two patterns.

Make Web3 development more accessible

Blockchain is not ready for code-free.

The technology should be easy to use to encourage application development.

The blockchain space is ready for Web2 developers to build on.

Zksync, Scroll and Polygon are willing to help Web2 developers choose the right solution and assist with development.

Layer 1 Panorama with new developments

The future of the blockchain industry lies in the modularity of the blockchain.

Building roll-ups allows innovation on a virtual machine without compromising security and decentralization.

Building new trust networks and virtual machines from scratch on a new Tier 1 blockchain is seen as unnecessary extra work. Because people underestimate the time and effort it takes to guide a new L1. It's hard. It takes five years.

Once the L2 Token launches and gains traction, developers of the new L2 will see the benefits of developing on Roll-up, which will allow them to innovate in their areas of expertise.

Value capture for dApps and protocols

The debate in cryptocurrency consumption is whether to build an app first and then lead the protocol, or start with the protocol and entice developers to build apps on top of it.

The application layer is important for future consumer growth.

The application has the potential to generate more economic value than the protocol, which could change the incentives for the protocol.