3 theses that will drive Ethereum and Bitcoin in the next bull market

After 2021, we entered an era in cryptocurrency where people stopped talking only about financial decentralization and started to broadly discuss the tokenization of everything, thanks in part to nonfungible tokens (NFTs).

This shift represents a critical perspective that is set to guide three theses for the upcoming bull market. To fully grasp these theses, it is crucial to understand that everything is data. Money is data. Your engagement with a brand is data. Your credentials are data. The ticket for your favorite show is data.

Since 2021, the ecosystem has increasingly started to store a large part of this data in the form of fungible tokens, NFTs, and timestamps on the blockchain, which acts as a data repository in this context.

Related:

Abstraction solutions were the missing bridge so that the crypto universe does not continue to be a technical environment exclusive to technically skilled people willing to face various challenges and complex journeys. But now, they are ready to shine!

And It’s not about ending decentralization, it’s about having an option. Those who want to remain 100% decentralized can do so, but those who don’t now have an option. This way, it avoids the crypto ecosystem dying in the famous chasm of innovation. Because magnificent infrastructures are pointless if people cannot connect to and navigate them easily in everyday life.

*The Technology Adoption Life Cycle highlighting the chasm between early adopters and the mainstream market. Source: “Crossing The Chasm” by Geoffrey A. Moore*

Something that’s not often discussed is how important these abstraction solutions are for traditional companies to effectively join Web3 too. How many companies currently have a team of developers who can program in blockchain languages, like Solidity? Making it easier for builders to get started is also crucial.

Breaking down the blockchain journey to mainstream into four phases, we could say that the account abstraction solutions, along with the advancements mentioned in thesis two, will propel Web3 into its penultimate phase — with improved infrastructure, fewer technical builders and brands join the game, and the number of applications, projects, and use cases multiply, attracting mainstream attention.

As of today, it seems that major blockchains will be increasingly viewed as platforms for multi-asset consensus in the next market cycle and less as currencies. The crowning gem will be the quest for scalability, which will make the layers more invisible and less complex for users to navigate and for businesses to integrate. Welcome to t of Ethereum and phase 2 of Bitcoin.

Lugui Tillier is the chief commercial officer of Lumx Studios, a Web3 studio that counts BTG Pactual Bank, the largest investment bank in Latin America, among its investors. Lumx Studios has previous Web3 cases with Coca-Cola, AB InBev, Nestlé and Meta. The author holds investments related to the Ordinals Protocol, though none named in this article.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.