Paradigm chronicles: A look back at 2023
As the pages of another year turn, it is with great pleasure and reflection that I address you in this letter. The year 2023, with all its challenges and triumphs, has been a testament to our resilience, dedication, and the unwavering spirit of exploration that defines Paradigm.
In the dynamic landscape of 2023, Paradigm continued its unwavering commitment to pioneering research and innovation. The Paradigm team remained steadfast in its mission, diligently working towards the realization of our long-term goals. Our native strategy served as a guiding beacon, allowing us to navigate through the unpredictable currents of the year and maintain a commitment to excellence.
One of the pivotal moments of 2023 was the evolution of the Paradigm Platform. What started as a conceptual project has now blossomed into a dynamic space, a testament to the beautiful minds within our community. The launch of the platform was just the beginning, and I am thrilled to announce that exciting new functionalities await in the upcoming chapters of our journey to shape the Paradigm Platform into a hub of collaboration and research.
Our achievements in 2023 extend beyond mere accomplishments; they are rooted in the resilience of our team and the vibrant community that envelops us. Throughout the year, despite constraints, we actively connected with leading scientists and engineers, cultivating relationships and sharing insights that energize our collective quest for knowledge. While our physical presence at conferences was limited this year, and regrettably, we had to make difficult decisions such as reducing our research fellows’ team, we persevered and thrived in navigating the challenges presented to us.
Throughout the year, our research endeavors extended to several interdisciplinary intersections, leading to the publication of numerous papers. We delved into diverse fields, exploring DeSci, metaverses, and decentralized decision-making with a focus on blockchain governance. Our research covered essential topics, including the role of DAOs in addressing climate change, leveraging space technology for environmental solutions, and the impact of AI on climate change mitigation. Additionally, we delved into the philosophical aspects of blockchain, addressed identity attacks in DeFi through biometric-based Sybil resistance, highlighted MEV as a public good, discussed interoperability in the metaverse, explored the potential and advantages of NFTs in the context of intellectual property in science, wrote on Proof of Personhood protocols for identity verification, and more.
In 2023, our in-house blockchain x biometrics project, Humanode, reached new heights. The introduction of the BotBasher advanced tool was a pivotal moment, establishing a significant milestone by enhancing Sybil-resistance. Observing the triumph of Humanode has filled the entire Paradigm team with pride, reinforcing our conviction in the transformative potential of unwavering dedication and collaborative efforts.
What will leave a lasting impression from the year 2023?
Throughout 2023, the world economy grappled with persistent macro and geopolitical challenges. Western central banks engaged in further monetary tightening endeavors to curb inflation, while Europe witnessed prolonged kinetic conflicts, and the Middle East experienced the onset of a new conflict. The IMF reported a projected global GDP growth of 3.0% for 2023 and 2.9% for 2024, both figures lower than the 3.5% attained in 2022. Meanwhile, there is a projected decrease in global inflation to 6.9% in 2023 and further to 5.8% in 2024, as compared to the 8.7% recorded in 2022.
In this challenging macro environment, the cryptocurrency market cap exceeded $1.4 trillion in 2023, experiencing significant YoY growth of 70.7% as the landscape continued to witness transformative moments. From U.S. presidential candidates pledging to ban CBDCs to court rulings on XRP’s security status, the year encompassed a range of events, including bankruptcies, SBF saga, ETF filings, and regulatory scrutiny.
Innovation extended to Bitcoin’s functionalities through the Bitcoin Ordinals protocol, exploring new use cases. Ethereum underwent the Shapella hard fork, marking a significant upgrade, while the Dencun upgrade aimed to enhance Ethereum’s scaling with data sharding. L2 rollups saw notable development, with optimistic rollups dominating the L2 market. Additionally, the implementation of zkEVMs boosted the growth of ZK rollups. Stablecoin designs evolved, addressing risks associated with fiat-pegged stablecoins. SocialFi witnessed growth, exemplified by increased interaction with smart contracts of social dApps. Data availability layers gained momentum. On top of that, RWA protocols experienced substantial growth, reaching $2.8 billion, and are expected to reach $16 trillion by 2030. Meme coins, such as Pepe, Milady, and CorgiAI, gained prominence in 2023.
Mainly, despite ongoing security challenges, cryptocurrency adoption remained robust, with the number of crypto owners reaching 575 million by December 2023.
In 2023, the field that experienced a significant transformation was generative AI, spurred by the introduction of OpenAI’s ChatGPT. Tech giants like Google and Meta joined the race by developing LLMs, with OpenAI rolling out significant updates such as GPT-4 and DALL·E 3. The applications of AI-generated content in Web3 garnered attention, particularly in the NFT space, gaming, smart contract development, and quality assurance. From the inception of advanced LLMs to the development of projects like the Humane AI Pin and AI-generated Beatles songs, AI has seamlessly integrated into our daily existence, influencing technology, culture, and artistic expression. The market capitalization of AI-related tokens surged from $8 billion to nearly $28 billion by December 2023.
Last year marked a pivotal moment for AI, not only in terms of tech advancements but also in addressing ethical, safety, and regulatory considerations. As we reflect on this landmark year, the progress in AI underscores both human ingenuity and the challenges that lie ahead. Responsible stewardship is paramount for navigating the transformative yet disruptive potential of AI.
Furthermore, the field of robotics experienced a dynamic year marked by significant developments, challenges, and breakthroughs. Notable advancements included the introduction of ultrasonically actuated glass needles, enhanced precision in liquid handling, and the creation of ‘brainless’ soft robots capable of navigating complex environments. These innovations underscored the versatility and adaptability of robotic systems.
Across various domains, progress was made in learning AI systems that could mimic human voices after brief recordings. Additionally, resilient artificial muscles were developed, empowering insect-scale aerial robots to recover from severe damage. Innovations extended to soft robotic tentacles for medical procedures, caterpillar-inspired robots proficient in confined space navigation, and underwater robots designed for ocean waste collection. A highlight of the year was the design of a quadrupedal robot capable of climbing steps and navigating uneven environments without relying on visual or tactile sensors, showcasing innovation in challenging scenarios.
In 2023, the realms of astronomy and space exploration witnessed significant milestones, enhancing our understanding of the cosmos and propelling space-related technologies forward. The James Webb Space Telescope delivered stunning images of the universe, providing valuable insights into exoplanets and the core of the Milky Way. NASA’s Perseverance rover collected samples on Mars, while the OSIRIS-REx mission successfully returned asteroid samples to Earth. Human exploration saw NASA’s Artemis 1 mission orbit the moon, paving the way for future lunar surface missions in 2024.
Space exploration featured noteworthy events, including SpaceX’s Mars rocket incidents, a spacecraft delivering asteroid fragments to Earth, and global efforts in cosmic exploration, with contributions from countries like India and China. India achieved a historic moon landing in the South Pole region, becoming the fourth country to do so. Space tourism commenced with the Axiom-2 mission, carrying former NASA astronaut Peggy Whitson and customers to the International Space Station.
A landmark moment was NASA’s formation of a team to study unidentified aerial phenomena (UAPs or UFOs), marking a historical shift in the agency’s approach to these mysteries. Additionally, astronaut Frank Rubio set a new record for the longest spaceflight by an American, completing a full year on the International Space Station.
On the one hand, the warmest Northern Hemisphere summer on record, attributed to human-caused global warming and El Niño, highlighted the impact of climate change. Sea ice reached record lows in Antarctic waters, and the Arctic exhibited its sixth-lowest sea-ice levels, emphasizing the ongoing challenges posed by environmental changes.
On the other hand, in 2023, the energy sector underwent significant transformations, embracing cleaner alternatives and demonstrating a commitment to sustainable practices. Research initiatives yielded innovative solutions in harnessing solar energy, tackling plastic waste, and developing sustainable fuels. The rapid evolution of green technologies marked breakthroughs in renewable energy, waste management, and overall environmental sustainability, signaling a collective dedication to eco-friendly approaches.
Throughout the year, numerous groundbreaking achievements and discoveries elevated our understanding of the brain to unprecedented levels. From the introduction of transformative neurotechnologies and innovative research tools to profound insights into brain states, cognition, and the intricate interplay of genes, 2023 undeniably emerged as a transformative year for neuroscience. Researchers globally made significant strides in diverse areas, unraveling mysteries such as the blood-brain barrier and exploring the intricate connection between genetics and human cognition. Noteworthy insights into memory formation, sleep regulation, and the impact of environmental factors on brain health reshaped our comprehension of the complex organ that governs thoughts and behaviors.
Breakthroughs in AI and therapeutic approaches for neurological disorders showcased the remarkable synergy between technology and neuroscience. Notably, neuroscientists developed a BCI that empowered a woman with severe paralysis from a brainstem stroke to speak through a digital avatar. Additionally, researchers created a portable, non-invasive system to decode silent thoughts into text, aiding communication for those unable to speak.
In the dynamic realm of nanotechnology and nanomaterials, the year 2023 stands out as a remarkable period characterized by groundbreaking advancements across diverse domains. Researchers have achieved precise manipulation of nanomaterials at the single-molecule level, pioneered innovative drug delivery systems, and developed nanorobots inspired by nature’s mechanisms. These achievements collectively push the boundaries of what is possible at the nanoscale, showcasing the continuous evolution and transformative potential of nanotechnology.
It’s just a few notable events that made the past year memorable.
As we stand on the threshold of a new year, the Paradigm team is filled with anticipation. Our commitment to research remains steadfast, and we have exciting announcements lined up in the coming weeks.
In closing, I extend my deepest gratitude to the Paradigm team and our community members. Your unwavering support and enthusiasm are the driving forces behind Paradigm’s unparalleled journey. As we step into the future, let’s carry forward the spirit of collaboration, curiosity, and a shared passion for exploration.
Wishing you a 2024 filled with inspiration, innovation, and the continued pursuit of knowledge.
Sincerely yours,
Sasha Shilina
Head of Paradigm Research
