On December 3 there was published a fresh report by Royal Bank of Canada’s analyst, which points out that in total crypto, blockchain and decentralization could unlock a market, worth about $10 trillion.
As Coindesk reports, Mitch Steves, who is an equities analyst with RBC's Capital Markets subsidiary, explained why the all the transactional services may have only decentralized future. According to his words, the crypto market is currently full of capabilities, even though it can put at stake and jeopardize lots of things.
Steves believes that protocol layer has way more potential than the apps as it will gain more value. Today, entrepreneurial ventures allow crypto protocols to work as decentralized options to patented services. The protocol layer would be constructed on top of these services; hence, more wealth will be actualized.
Decentralization, Risks and More
The analyst also emphasized that the protocol layers will gain more value the way apps become useful. This will develop an interest in the supplementary creation of applications.
If it’s true, then Steves statements reflect the theory of the fat protocol. This approach has been presented by Union Square Ventures. It proves that the formation of value in decentralized cryptos will take place at the inferior infrastructure layers.
Besides, Steves claims that right now the bitcoin mining facilities market costs at least $4.2 billion. Meanwhile, there is extra $350-450 million market of equipment for other bitcoin-cloned cryptos as well as $1.9 billion market of facilities for “clones” of ethereum.
The author of the report believes that the decentralized technology, which exists today, is often misinterpreted and underestimated. It is also noted in the document that cryptos are getting better at conducting operations, which number keeps growing. For example, the analyst considers the highly anticipated in 2018 Lightning Network to be able to perform on “Big Daddy” over 1 million of operations per second.
Also, Steves named the present risks which the whole system of blockchain, cryptos, and decentralization has to cope with. Among them, there is the bitcoin’s scalability problem, complex wallet hacking methods as well as authorities’ interference in the bitcoin market.
Ultimately, Steves summed up that if protocols and scaling ripe, the decentralized crypto industry could cost some trillions of dollars. Therefore, humans’ consensus should be based on the real innovation. That would be a blockchain, which nobody will be able to hack and on top of which there would be constructed a safety layer.