Looking back at 2022, the encryption industry has encountered difficulties and obstacles caused by various uncontrollable factors, and it is also gestating vitality and vitality in the process of change and development.

This year, we witnessed the thunderstorm of Luna, three arrows capital, FTX and other institutions that were once considered "too big to fail" collapsed one after another, and the market confidence was seriously frustrated; but this year, we also witnessed the Ethereum At the historical moment of the merger, we saw the determination of Hong Kong, Singapore and other regions to compete for the Web3 center, and the positive signals revealed by traditional institutions still pouring into the encryption market, and some positive changes are taking place.

Under the common memory of 2022, looking forward to 2023, everyone's perception may be different. Combining the long-term observation of the encryption market, the Okey Cloud Chain Research Institute put forward seven forecasts for the encryption industry in 2023, trying to find the foreshadowing that has been secretly buried under all trajectories amidst many uncertainties.

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Trend 1: Global encryption regulation has entered a new stage and embracing compliance will become a must

The occurrence of a series of security incidents and thunderstorms is giving rise to stronger encryption supervision. After 2022, major countries and regions around the world, especially those that were more friendly to encrypted assets, will have to rethink how to deal with the risks and challenges behind virtual asset innovation.

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Trend 2: The application of Web3 industry kicks off, together with AI 3.0, triggering creative destruction

Web3 is still the most attractive technology concept in 2022, and a lot of real money and talents will flow into it this year. Although the concept of Web3 is still controversial among all parties, Web3 is profoundly changing our world. Many organizations have also devoted themselves to it this year, combining Web3 with their own fields and finding ways to "upgrade" their original businesses. , and at the same time, a solution that can "land" Web3.

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Trend 3: The importance of the Web3 security track is highlighted, and more institutions will pay attention to the data field on the chain

This is not a prediction, but a fact of what is happening.

According to the incomplete statistics of Okey Cloud Chain Research Institute, there were 275 security incidents in blockchain ecological attacks in the first 11 months of 2022, causing a total loss of about 2.769 billion U.S. dollars (more details on 👉Okey Cloud Chain Research Institute: In 2022, more than 80% of the losses in the blockchain security field will be concentrated in DeFi and cross-chain bridges). These endless hacks and scams are causing some users to leave in frustration and fear, and it has also made the outside world more question the security of Web3. We certainly hope that users are responsible for their own assets, but individuals sometimes appear powerless in front of many professional attackers. At this time, we need more professional Web3 security organizations to protect the entire industry.

The outstanding performance of a number of Web3 security institutions in the financing market in 2022 has proved the market's emphasis on Web3 security, and this trend will not change in 2023. Along with Web3 security, there is also the field of blockchain data.

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Trend 4: Continuous innovation in expansion solutions, ZK series L2 ecology ushers in spring

In the past few years, we have seen the rapid growth of the blockchain ecosystem at an exponential rate. After the completion of the merger of Ethereum in 2022, the market has more expectations for the future development of the blockchain ecosystem. However, the merger cannot solve the core expansion problem of the blockchain. Various expansion solutions will still become the focus of attention of all parties in 2023, and will continue to innovate under the pressure of market demand.

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Trend 5: With the rise of Ce-DeFi, institutions will use "another way" to re-participate in the encryption market

Although many investment institutions will suffer setbacks in the encryption field in 2022, there are still many traditional institutions trying to re-understand encryption innovation in a deeper way.

In November 2022, the Monetary Authority of Singapore, MAS, announced the execution of "the first real-world use case of an institutional-grade DeFi protocol", namely JPMorgan Chase, DBS Bank, and SBI Digital Asset Holdings, using the Aave protocol on Polygon to complete Ethereum. Forex and government bond trading on the web. Cases of such institutions directly applying DeFi are becoming common in the encryption field, and many financial institutions that previously opposed cryptocurrencies, such as JPMorgan Chase (JPMorgan), have also begun to be optimistic about and bet on related businesses.

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Trend 6: Institutions continue to deleverage, and retail investors have become a key force supporting market confidence

In the past two years, due to the release of water by global central banks and the increasing acceptance of traditional financial markets, investment institutions in the virtual asset market have expanded rapidly, and the market leverage ratio has rapidly expanded. However, with the tightening of the Federal Reserve's policy in 2022, a large amount of funds began to flow out, coupled with the domino effect triggered by a series of thunderstorms, many centralized institutions encountered a severe liquidity crisis, and institutional deleveraging became the main theme.

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Trend 7: The global CBDC research and development process is accelerating, and the digital renminbi will further expand the pilot

At present, more than 100 countries and regions around the world are exploring central bank digital currency (CBDC). These countries have accounted for more than 95% of global GDP, and 11 of them have fully launched CBDC. In the coming 2023, the surge in cross-border payment demand and the impact of encrypted black swan events such as FTX will once again promote the development of global CBDC.

Among them, the United States has begun to make efforts in CBDC. In Executive Order No. 14067 signed by President Biden, the research and development of the design and deployment of CBDC is given the highest priority. The White House Office of Science and Technology Policy (OSTP) in September 2022 The release of the "Technical Assessment of the US CBDC System" also clarified the policy objectives and technical design plans of the US CBDC system.

In addition to the United States, Turkey, Kazakhstan, Australia and other countries will also accelerate CBDC research and development or pilot work in 2023. China's digital renminbi has always been in the first echelon of global CBDC research and development. Recently, the pilot area has expanded again, and 17 provinces and cities have launched digital renminbi pilots in all or some areas. We expect that the scope of the digital renminbi pilot will be further expanded in 2023, and it will assume a more important role in the international market, but it may take some time before it is fully launched.