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Andreessen Horowitz (a16z), a California-based leading venture capital firm, has published a report that highlights the current state and trends of the crypto industry.
Report Says Web3 Is Fairer Than…
The a16z report mainly focussed on the web3 and Ethereum state. The leading firm stated that the latest selloff of the market points towards a possible indication of a seasonal downturn. In addition, it acknowledged crypto-powered Web3 as one of the best opportunities of the decade.
Not only that, the company believes that Web 3 promises better economic facilities in comparison to Web2 giants such as Meta. The firm supported its argument by citing its data. According to this, the primary sales of Ethereum-based NFTs and the royalties given to creators from secondary sales on OpenSea together amount to a total of $3.9 billion. The figure is four times more than what Meta has awarded its creators this year till now.
The VC giant called DeFi a disruptor in the traditional finance industry. In addition, it also introduced the possibility that projects such as Helium, Spruce, and Flow Carbon can provide solutions for important issues in the real world. This they can execute through leveraging the DLT strengths in transparency, privacy, and decentralization.
Ethereum Continues To Dominate, But For How Long Can This Sustain?
The report also highlighted that Ethereum continues to dominate among other layer-one blockchains such as Solana and Fantom. Ethereum caters to around 4,000 monthly active developers while its primary competitor Solana has only around 1,000.
But, there’s a catch, Ethereum as known prioritizes decentralization over scaling. Now, this along with lower fees and better performance makes other networks more lucrative in comparison to it.
“Blockchain Is A Hit Product”
a16z sees a strong similarity between Web3 and the Internet’s early commercial use through the analysis of its current user base which lies roughly between 7 million to 50 million.
According to the VC giant, “multiple winners” are going to come out as it believes blockchain is a “hit product” just like mobile phones in the last decade and PCs and broadband in the 90s and 2000.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
