It’s time to get a head start on Web3 development
Contributed article by Artem Avdeev and Maxim Gerasimenco from Everscale
Last year saw a fairly large amount of negative tendencies in crypto markets. Most industry experts paint a bleak picture of what’s to come, at least for the medium term. Indeed, several well known crypto companies have already collapsed, while some are on the verge of doing so. That being the case, a reasonable question inevitably arises; namely, what direction should talented developers take in these circumstances? This article seeks to answer that question, as well as offer some solid arguments to reinforce your belief in the potential of decentralized technologies.
- Current market overview: where are we now?
- A paradigm shift is needed.
- The pros of blockchain for enterprise solutions in a nutshell
- What conditions should blockchains for the enterprise meet?
- Everscale’s 2023 strategy calls for action in the enterprise sector solutions
Current market overview where are we now?
Current activity in crypto markets has dropped to values not seen since early 2020. Trading volume on all platforms in December last year amounted to $543 billion compared to $741 billion in September. The main factors that contributed to the decline in trading volumes include the fall in crypto prices due to reduced interest in assets such as NFTs and DeFi and the collapse of several high-cap companies (e.g. FTX).
At the same time, the situation is exacerbated by some external factors. These are primarily recession risks in Western economies as a result of monetary policy tightening (interest rate hikes) and heightened geopolitical tensions over the past year.
These circumstances, in turn, send shock waves across the whole industry. In other words, fewer institutional investors are entering the market; some are putting their activities on hold, while others are completely abandoning the industry and withdrawing all of their funds.
As a consequence, many companies are downsizing their workforces, leaving thousands of developers unemployed. Some devs are starting their own projects, overloading investment houses and blockchain networks with requests for grants and funding. Due to limited financing, few of them succeed in receiving the necessary funding for their projects, and most applications are rejected.
A paradigm shift is needed
Nowadays, despite market saturation, most blockchain platforms are still launching projects in already popular areas: DeFi, GameFi, or the metaverse. In fact, these sectors of the industry are affected by the unfolding crisis to a much greater extent. There is little chance of being able to set up a successful project in these highly competitive niches, where there are thousands of services already operating. This makes it the right time to search for blue oceans.
The most promising area currently emerging in this respect is enterprise solutions. However, despite their attractiveness and the immense opportunities offered, only several experienced companies with good R&D departments are looking into applying these kinds of solutions. This is mostly due to the inertia of the market triggered by the conviction that crypto prices will be on an upward trajectory for most of the time.
Everscale strongly believes that within a few years, close to 100% of payments will be processed with the help of blockchain. The same applies to logistics, healthcare, government services, the Internet of Things, and almost any other sector of the economy with a large amount of records and data processing.
This is due to large and medium-sized businesses actively researching and entering the realm of decentralized technologies. This rapid advancement of blockchain-powered enterprise solutions is a golden niche for developers.
The pros of blockchain for enterprise solutions in a nutshell
What conditions should blockchains for the enterprise meet?
It should be clarified that most decentralized solutions for enterprises fall under the purview of strict government regulations and data protection standards. Decentralized platforms are required to meet a set of both technical and non-technical requirements in order to be eligible to deliver these kinds of services.
However, most platforms do not qualify due to architectural vulnerabilities and the frequent hacks associated with them. Based on the outcomes of a series of studies, Everscale is one of the few blockchains that meet all of the criteria required.
Besides fulfilling the above-mentioned criteria, Everscale offers two revolutionary features: storage fees and infinite sharding.
On Everscale, each smart contract pays for its storage on the network (see the details in the documentation). It thus makes no sense to limit the speed of recording on the network. The smart contract pays for its storage for as long as it is needed. When the funds run out, the respective contract gets deleted. Therefore, Everscale can provide storage on the network at a certain price, eliminating the need for users to compete with each other.
As shards on Everscale are added dynamically, the blockchain can process a large number of transactions per second. However, they are not free and can take longer to complete. That is, with the addition of a large number of shards, the execution time for transactions increases as the number of transactions per second greatly multiplies. This functionality is still in the process of being implemented, and there is a need for normal interaction between workchains.
Combining both of these elements, in Everscale we get a blockchain that can process a huge number of transactions per second for a constant price, albeit with a slowdown in load peaks. This kind of architectural construction permits the blockchain to remain operational for decades. At the same time, unlike solutions that use rollups, the blockchain will remain decentralized.
By way of illustration, DA5, the Philippines’ largest money remittance service, concluded a partnership deal with Everscale to host its transaction processing on the blockchain last year.
Everscale has the unique capability of taking on such a wide user base without slowing the load on the network or driving up transaction costs.
Everscale’s 2023 strategy calls for action in the enterprise sector solutions
As you may have gathered from this article, given the current market conditions, it is necessary to focus on sustainable products that will be in demand in the near future.
That being the case, Everscale is doing its utmost to create a wide range of solutions for unicorn companies in the blue ocean (enterprise, CBDCs, payments), instead of allocating resources to new products in the purple ocean (DeFi, GameFi, the metaverse, etc.). This strategy will allow the platform to withstand present-day difficulties and achieve new highs in the following years.
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