4 predictions for scaling in web3 - data and trends [Coindesk webinar recap]
Oct 16, 2023
In the blockchain industry, data is more than just a valuable resource—it's the keystone to building smarter, fact-based hypotheses and precision-guided strategies.
In a recent webinar (click here to watch the recording) hosted by Flipside and CoinDesk, the expert panel shared their predictions on the intersection of privacy, personal data, and blockchain systems. And they gave us their insights on the crucial role data analytics plays in Web3 growth.
Here are the top 4 predictions from the panel featuring Sei Co-Founder Jayendra Jog, 21Shares Researcher Tom Wan, and Flipside CTO & Co-Founder Jim Myers.
1. Data Interoperability: The Bridge Between Blockchains
One of the primary takeaways from the discussion was the importance of interoperability across data platforms. As no single platform can cater to every blockchain or user need, the ability to combine data from multiple sources is crucial. As Jim Myers mentioned:
"The big trend for the data of the future is interoperability across data platforms, which Flipside is already doing with LiveQuery."
2. The Integration of Off-Chain Data: A Holistic View
Another prediction is the merging of off-chain data, such as TradFi data, with blockchain data. This integration offers a holistic view of adoption and contextualizes insights, allowing investors to draw parallels between familiar asset classes and crypto. As elaborated by Tom Wan during the webinar:
"Cryptocurrencies represent a relatively small asset class when compared to traditional financial markets. To encourage more individuals to comprehend how blockchain operates and evaluate its potential, there's a need for a bridge—a connection to the familiar. By integrating off-chain data, such as traditional financial metrics, with blockchain data, we offer a point of reference. People can compare the performance and dynamics of blockchain assets with those of well-established asset classes, facilitating a more comprehensive understanding."
3. Challenges Ahead: Making Data Accessible
The panel predicted that the solution to the current bottleneck in crypto data will be overcome by giving anyone the ability to efficiently query the vast amounts of data available.
Jayendra Jog shed light on the issue, suggesting that the biggest improvement would be:
"...giving a way for normal people to be able to ask questions and get answers to these questions very quickly." Several researchers and data providers are working on this. Among the solutions is Flipside’s community of 40,000 analysts synthesizing hundreds of thousands of insight dashboards covering the breadth of the industry.
4. The Future: AI and Enhanced User Experience
AI is anticipated to play an instrumental role in addressing the challenges of data analysis in the near future. Furthermore, improving user experience, starting from wallet interfaces and expanding to overall operations, was highlighted as a critical step in onboarding more users into the crypto ecosystem.
Jayendra Jog noted that “easier ways to be able to query this data would be incredibly helpful” and he predicts that AI can play a much bigger role in this in the future by enabling natural language queries and removing the SQL barrier to entry for analysts
Jim pointed out that when he thinks about AI and blockchain, he thinks about how blockchain could be used as a tool to solve a problem that may emerge with AI - human-verification. He asserted that categorizing/certifying human-created content on the internet distinctly from AI-generated content is something blockchain is perfectly designed to achieve.
Sifting Through the Web3 Hype: Practical Advice
As Web3 gains momentum, our panelists offered predictions and guidance for effectively distinguishing between hype and reality:
Jayendra Jog predicts that hands-on exploration of new infrastructure and applications will be essential in uncovering genuine opportunities amid the growing hype of Web3.
Tom Wan anticipates an increased reliance on data analytics, emphasizing the importance of understanding methodologies to make informed decisions in the evolving Web3 landscape.
Data is Key to Web3's Future
As the industry grows, the need for clear, comprehensive, and interoperable data will only intensify. Staying informed and understanding the methodology behind the analytics will be key.
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