The Merge | 11 Application Categories to Pay Attention to After the Ethereum Merge

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The Merge | 11 Application Categories to Pay Attention to After the Ethereum Merge

What are the projects that could change the game rules for ETH 2.0?

This article is authorized to be republished from the Meta Universe Way, original article here.

This article is suitable for those who like to "think ahead."

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Ethereum is undergoing changes, and they are happening fast. As we transition to Proof of Stake (PoS), next year will bring fundamental changes to the Ethereum network.

Here are some things to note...

There has been a lot of discussion lately about ETH 2.0. In this post, I will specifically focus on the projects that could potentially change the game rules. The premise is that only ETH 2.0 and the upgrades it introduces can make these things possible.

1. Staking Pools

After the Ethereum merge, stakers on the network will begin to receive token releases and transaction fees. Validator qualifications require staking 32 ETH to earn rewards. However, the "staking pool" model allows multiple small users to come together as validators and distribute rewards.

Services like Lido Finance + Rocket Pool are expected to gain attention.

2. Staking Derivatives

Staking derivatives typically represent ERC-20 tokens of staked ETH.

Unlike regular staking ETH, staking derivatives allow staked ETH to be used in DeFi just like any other ERC-20 token.

The safest + most liquid combination will absorb billions of value.

3. stETH Strategies

Now that we've introduced tokenized staked ETH, there are other use cases as well.

There is a high demand for stETH. The highest yield generating protocols will benefit from users trying to maximize returns.

The yield strategy + stETH is a delicious combination.

4. Cross Rollup Architecture

Cross-chain stuff is cool, but what about cross Rollup tools? This is something that people are not paying enough attention to. Bridging the gap between Optimistic Rollup and zkrollup dApps will have a bright future.

For example, Hop Protocol

5. Meta Services

Rollups use Calldata. Calldata is expensive, one of the most expensive operations on the Ethereum network is writing to storage. For Rollups like Arbitrum & Optimism, supporting bot networks that bundle txs will greatly help reduce costs.

For example, GnosisDAO + Argent

6. zkProofs

It's not just the season of ETH 2.0, but also the season of zkproofs. This is the result of years of research. zkproof technology can scale ETH to incredible levels. These dApps are already live and will help billions of users use ETH.

For example, zkSync, Loopring

7. Streaming/Payments

Layer 2 scaling will lay the foundation for real growth of L2 native dApps. This is where things like streaming will truly shine. Once further adopted, users will flock to these solutions with unparalleled UX.

For example, Sablier + Splits

8. Multi-chain Governance

Tokens are not the best choice for voting as they:

  • Are subject to chain security risks
  • Are not conducive to participation

Competition is establishing the next industry standard for cross-chain DAO tools. There are many unique ways to achieve this.

For example, Guild

9. Privacy

Speaking of zkproofs, privacy cannot be ignored, right? Our privacy should be the most important to us. zkproofs can zero-knowledge verify any function without revealing underlying information. This is crucial.

10. Counterfactual Wallets

Counterfactual wallets will enable users to directly use ETH to L2, avoiding high Gas costs of initial L1 deposits. This technology will be used by top CEX and DeFi protocols to bring in a large number of new users.

For example, Loopring

11. Cross-chain Accounts

Many proof-of-stake blockchains have quietly been working towards a cross-chain future. Cross-chain accounts will allow different blockchains to easily interact with all smart contracts on ETH. This will help unlock billions of funds...

For example, Cosmos

Back to Basics?

All the content I have described in this post may be the spark needed for our next trend. If they play out accordingly, this will bring a refreshing new chapter to ETH.

These are not things you want to ignore.