This piece features insights from a professional involved in design and communication within the blockchain space.
The Web3 landscape is progressing rapidly—new protocols appear, developer preferences shift, and the skills that are high in demand today may fall out of favor tomorrow. For those carving their path in this sector, keeping ahead isn’t solely about technical know-how; it’s equally about grasping the future direction of the industry.
Yurii Kovalchuk, a Web3 Engineer currently engaged with Forte Group and a blockchain development lecturer at Set University, has experienced these transitions firsthand. With an extensive background of over nine years in IT—from Java back-end development to leading teams in Web3 startups—he offers a valuable outlook on the industry’s evolution and its trajectory.
From the emergence of Rust and AI-enhanced Web3 solutions to ongoing security issues developers face, this interview reveals the current state of Web3 development. Whether you’re a coder, investor, or someone simply trying to understand the space, Yurii’s insights provide a crucial look into the hurdles and prospects shaping the blockchain landscape.
The Web3 job market: how has the industry transformed over the past five years?
– How has the demand for Web3 experts changed compared to five years ago? What subjects should a budding developer focus on to thrive in this area?
Yurii: Five years can be considered an entire era in the realm of Web3. This timespan is substantial enough to evaluate changes as the market progresses through rapid cycles.
For example, five years back, DeFi was still an emerging concept. Now, it stands as one of the cornerstones of Web3. In terms of current labor market trends, here’s what I observe:
- Increased demand for Rust developers. As Solana’s popularity has soared, so has the need for experts fluent in Rust.
- Web3 engineers with AI knowledge. The realm of AI is advancing swiftly, creating a need for its integration within Web3 protocols.
- Security Researchers. With a new wave of AI-driven attacks on the horizon, the demand for auditors and security professionals is on the rise.
- Developer Relations. This function is increasingly vital in bridging the gap between project teams and developers as Web3 grows beyond its technical roots.
- Bold marketers. Web3 demands a unique marketing approach that prioritizes flexibility and volume, deviating from conventional methods.
- Community managers. Successful Web3 projects heavily depend on their communities, making quality community management critical.
Solana vs. Ethereum: where does one technology outpace the other?
– What does Solana achieve that Ethereum has yet to match? Are there any potential changes that could help balance the scales?
Yurii: Solana currently has an edge in terms of throughput and low transaction costs, thanks to its architecture that enables it to handle thousands of transactions per second without requiring extra scaling layers.
Conversely, Ethereum is focused on constructing a more decentralized and secure infrastructure, which may be safer and more sustainable over time. Layer 2 solutions are under active development, enabling Ethereum to significantly enhance its performance.
With upcoming updates, Ethereum is poised to improve its transaction speed and costs to compete with Solana.
However, whether Solana can achieve the same level of stability and decentralization as Ethereum remains an open question.
A significant security mistake still prevalent in Web3
– You often emphasize the importance of security. What is one recurring security mistake that developers in Web3 continue to make?
Yurii: The most significant oversight that developers and users repeatedly make is inadequate management of private keys.
Indeed, the ongoing joke about private key commits on GitHub remains relevant because it holds some truth. Individuals frequently mishandle sensitive information like seed phrases and private keys, overlooking hardware wallets and additional security checks, which opens the door to hacks, phishing attacks, and theft of assets.
Access management in smart contracts is a close second. This is a primary cause of hacks on Web3 protocols, as many developers either grant excessive administrative rights or improperly implement contract updates.
This negligence can lead to protocol owners losing control or hackers gaining access to crucial functionalities.
As Web3 continues to advance, fundamental security mistakes remain the culprits behind the most significant attacks and breaches.
Web3 requires a rebranding. But what kind of rebranding?
– You recently expressed that Web3 needs a fresh perspective. What specific elements do you believe should undergo change?
Yurii: I don’t think the term “Web3” needs rebranding—its image is still relatively positive and unblemished.
The call for change is more about the concepts surrounding crypto and blockchain.
Currently, crypto is associated with speculative and negative sentiments primarily due to individuals exploiting the system for quick profits. Meanwhile, blockchain is viewed as an outdated concept that is often misidentified with cryptocurrencies, leading to misconceptions. Addressing these issues is essential through education and effective communication.
On my social media, I consistently clarify that these three concepts—Web3, blockchain, and crypto—are distinct from one another.
In essence, Blockchain represents the technology, Crypto is one of its applications, and Web3 signifies a new internet paradigm where you gain ownership of your data and assets.
This approach can help foster a proper understanding of Web3 among the broader audience.
Pectra: what is it and why does it matter?
– On February 24, the Ethereum Pectra hard fork is set to occur. What vital updates does this introduce, and how will it benefit the Ethereum ecosystem and its developers?
Yurii: The Pectra hard fork signifies a crucial advancement for Ethereum, merging two major developments: Prague for the Execution Layer and Electra for the Consensus Layer. This will be one of Ethereum’s most significant updates in history (in terms of the number of EIPs involved). There are three key aspects to note:
- User Experience (EIP-7702) introduces a new methodology for temporarily converting EOAs (Externally Owned Accounts) into smart contracts, greatly enhancing user experience and moving closer to true Account Abstraction (AA). This will enable features such as transaction batching, payment of fees via ERC-20 tokens, and varied levels of account access.
- Validator functions (EIP-7002, EIP-7251). Validators will gain the ability to autonomously withdraw their earnings and staked ETH, enhancing the process’s flexibility and speed. Moreover, the maximum staking amount will rise from 32 ETH to 2048 ETH, simplifying management for large stakers while preserving the network’s decentralization.
- EIP-7691 permits an increase in the maximum Blob data in a block from 6 to 9, and the target number from 3 to 6, temporarily boosting Ethereum’s throughput for rollup solutions until peerDAS is fully implemented. EIP-7623 escalates the cost of calldata to incentivize rollups to leverage Blob data, enhancing storage efficiency.
Do developers still drive market trends?
– Currently participating in the Uniswap Hook Incubator, how can developers predict market trends in this kind of community, where they significantly shape the narratives?
Yurii: Yes, I am presently engaged in the Uniswap Foundation & Atrium Academy’s incubator programme, which allows us to explore the capabilities of Uniswap v4 and its standout feature—Hooks.
This version offers limitless possibilities for customizing AMMs, including dynamic fees, MEV protection, and adaptable liquidity management mechanisms, enabling the creation of more than just add-ons to Uniswap but complete protocols built on top of it.
Moreover, Uniswap is setting a directional course not only in DeFi. Projects like Flaunch, which provides a launchpad for memecoins through a fair auction, illustrate that its application reaches far beyond standard DEX functionality.
I believe the next major trend will revolve around deeper modularity in DeFi protocols and the incorporation of custom mechanics into liquidity. V4 enables the development of products with tailored algorithms for pricing, asynchronous exchanges, and flexible liquidity management, which could substantially reshape the DeFi landscape in the coming years.
Memecoin automation: a potential opportunity or a risk-filled bubble?
– With the recent release of pump.fun on mobile, it’s evident that launching memecoins has never been simpler. Your own projects from recent hackathons have also streamlined this process. Is there a possibility that this ease of issuing tokens could lead to a major bubble? Is Web3 becoming akin to a fast food industry?
Yurii: Yes, one of our recent projects effectively simplified the process of creating memecoins through the utilization of AI agents.
Recognizing that both memecoins and AI are two of the most rapidly evolving sectors in Web3, we aimed to explore their synergy and potential market impact. The ease of creation will certainly lead to a surge in the number of tokens, although not all will be built on solid foundations or provide real utility. Nonetheless, I don’t advocate for making it intentionally difficult to create low-quality projects.
Web3 is still in the process of enhancing user experience, and our goal should be to make it more accessible for newcomers. Instead of imposing restrictions and barriers, it’s crucial to equip individuals with the skills to discern quality and appreciate value.
Just as with food: instead of banning fast food, we should educate children on making healthier choices. Web3 must adopt this mindset—rather than block access, we must raise awareness.
Memecoins vs. trust in Web3
– Do memecoins tarnish the Web3 industry’s credibility for aspiring developers and investors? How do scandals surrounding projects like Libra, $TRUMP, and others impact trust in the technology?
Yurii: I don’t think memecoins as a category diminish the Web3 industry’s reputation. They can possess viable mechanics and utilities. Consider them akin to promotional materials or marketing strategies for a project.
When aiming to quickly capture audience attention and foster a community, memecoins can play an effective role. Additionally, memes resonate with a broad audience—both for regular users and enthusiasts eager to launch their projects, even in a more playful context.
Regarding the broader discrediting of Web3, this concern doesn’t solely apply to memecoins. Any project designed primarily to mislead users undermines the industry’s reputation. Be it a memecoin or a Layer 1 blockchain that was merely theoretical, raised substantial funds through ICOs, and disappeared, the principle remains unchanged. Yes, due to the simplified process of token creation, it has indeed become easier for scammers, resulting in more frequent rug pulls. However, as mentioned before, the answer doesn’t lie in bans but in education.
DYOR (Do Your Own Research) continues to be a fundamental principle for everyone engaged in Web3.
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