information. Providing users with complete control over their funds via private keys, it differs from a custodial wallet by giving users direct control over their funds rather than a crypto exchange or platform. By offering greater control, self-custody can assist users in regaining control of their digital identities - underlining the solutions crypto offers for issues that have plagued digital industries in recent years. To that end, many projects are working to put control of digital identity back in the hands of users and in 2023, we will see this improve users’ privacy because they will ultimately have more control over their data. Bolstering security through zero knowledge Zero-knowledge (ZK) cryptography has long been considered a gamechanger for ensuring the privacy, security and integrity of blockchain applications and 2023 is set to be its year. ZK cryptography proof is a way of proving the validity of a statement without revealing the statement itself and is used to secure the transaction fully on a blockchain platform. While a few chains – including Mina, ZCash and Celo – already use ZK cryptography in production, none of them provide true programmability or full on-chain smart contract functionality. As a result, they are limited in what they can do. But that’s going to change in 2023 and the rapid investment and development of zeroknowledge proofs is an important signal that the technology is getting ready for prime time. Innovation remains the key to success Here at Nexo, we were buffeted by the same events as everyone else. The good news is that we turned these trials and tribulations into opportunities for our clients. We started a Web3 fund and invested in 70-plus companies, while our product team debuted the Nexo Card, Nexo Prime, Nexo Pro, the Booster, smart staking, and our non-custodial Nexo Wallet – all designed to make operating with crypto easier and more effective. As a result, we now have more than five million Nexo users, a figure we’re confident will grow in 2023, partly due to the launch of the Nexo Wallet, which opened the door to the benefits of decentralised finance (DeFi) and Web3 identities. It’s true that the crypto universe has had its share of imposters and security hazards – there have also been some uninvited guests – but the outlook for 2023 is solid. Why? Because crypto’s underlying technology holds out the promise that anyone with net access will be able to access financial products and services in an unintermediated and permissionless way. In 2023 cryptocurrencies will continue to democratise the financial world... and that’s a fact. “It’s true that the crypto universe has had its share of imposters and security hazards – there have also been some uninvited guests – but the outlook for 2023 is solid.” Finance Monthly. F i nanc i a l Innov a t i on & F i nTech 63
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