As we enter 2025, many questions will be looming over crypto, and not just about prices and regulations. The underlying technology that powers some of the industry's most popular devices is also set to change in the new year, and those shifts could have big implications for consumers.
For our annual Crypto Crystal Ball series, we're taking. An in-depth look at the narratives that may shape the coming year and how they may affect you.
After seeing how much political capital Donald Trump might be willing to spend on the crypto industry's major issues, here's how the upcoming tech upgrade to Ethereum will finally go mainstream at the consumer level.
For years, the crypto industry prayed for mass adoption. But time and time again, the products and experiences on the chain failed to attract as many users as their Web2 rivals.
A key update for Ethereum, penciled in February, could change that – making on-chain applications much easier for everyday users.
David Silverman, Senior Vice President of Strategic Business Initiatives at Ethereum scale project Polygon Decrypt In the year During the crypto bull market of 2021, millions of people were interested in exploring on-chain applications – but the technology wasn't ready. Come the coming 2025 bull cycle (knock on wood), Silverman says crypto commodities will finally be up to snuff.
“In this next cycle, if we see a lot of interest flow, we can show a real example of what we think is the future of Web3,” Sillman said, “as opposed to a glimmer of hope.”
why? Developers say they are the future of Ethereum Upgrade Pectra It removes the bottlenecks that previously made chained applications a headache. Goodbye gas bills and special wallets for browsing smart contracts; Hello signing transactions with FaceID and browsing on-chain apps without signing any transactions.
A key innovation in Pectra is that it provides smart wallet functionality for the basic types of wallets issued by major companies like Coinbase and MetaMask. Come February, users of those wallets will be able to pay gas bills on Ethereum and all L2s in any crypto of their choice, including stablecoins. You can also sign transactions with universal devices like Apple's FaceID and TouchID.
Those effortless signing methods can now “enable very complex on-chain interactions with a single click,” says Mark Tinaway, co-founder of Ethereum's layer-2 network Optimism. Decrypt.
Take session keys for example. Previously impossible, session keys will soon allow ordinary crypto users to browse a single site or app for hours while completing dozens of on-chain connections—all without the user knowing what's going on in the background.
“You can have an Instagram experience without feeling like you're on a chain,” Tyneway said Decrypt. “It opens up a huge wave of creativity.”
Polygon's Silverman Pectra recently said it will allow many crypto app developers to create seamless experiences where gas payments are supported and transaction signatures are removed – leaving behind the look and feel of leading Web2 apps but offering unique Web3 benefits.
“Crypto UX is going to level off,” Silverman said. “This is an opening.”
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