Simplifying Crypto for the Next Billion Users

Simplifying Crypto for the Next Billion Users | Opinion

The main challenge facing the cryptocurrency industry today is its complexity, which deters the average user. To attract the next billion crypto users, the focus must shift from promoting decentralization and education to creating user-friendly applications that simplify the blockchain experience. By minimizing technical jargon and enhancing usability, the crypto world can resemble the simplicity of traditional apps.

Key Takeaways

The current complexity in the crypto space acts as a significant barrier for new users.
Effective solutions should focus on simplifying user interaction rather than emphasizing decentralization.
Creating a seamless user experience, similar to that of social media apps, is crucial for mainstream adoption.
The goal should be to make blockchain technology invisible, allowing users to benefit from it without needing to understand the underlying mechanics.

Abstraction must become crypto’s Holy Grail. We need to remove all of the complexity and struggles so people can actually see what web3 has to offer.

The Complexity of Crypto

Crypto's primary issue today is its inherent difficulty. Most web3 applications demand a technical expertise that most users don't possess. Onboarding into the crypto space is challenging, involving tasks like setting up a digital wallet and securely storing a seed phrase. Navigating through various networks adds further complexity, creating a significant barrier to entry. It’s akin to ordering different meal components from separate restaurants and needing distinct currencies for each transaction.

People are unlikely to adopt blockchain simply because they are persuaded by its decentralization advantages. Instead, if they encounter an excellent application that operates on blockchain technology and is easy to use, they might become engaged.

Shifting Away from Blockchain

Regrettably, few in the crypto industry are working on developing such accessible applications. Too many are focused on ideological beliefs or debating the best scalability methods. They often waste time trying to educate users about decentralization, mistakenly believing it will foster growth in crypto adoption.

The reality is clear: outside of a small cohort of blockchain enthusiasts, most people are indifferent to decentralization and are not willing to invest time in mastering it. For instance, the promise of "greater financial inclusion" isn't going to inspire your grandmother to seek out tutorials for setting up her own crypto wallet.

To encourage the next billion users to embrace blockchain, the industry must prioritize abstraction over education or decentralization. The aim should be to make blockchain as inconspicuous as the TCP/IP protocol that supports the internet, which most users don’t even notice. If we eliminate the technical barriers and jargon surrounding blockchain, web3 apps can become as user-friendly as conventional smartphone applications, paving the way for broader adoption.

Abstraction: Making Blockchain User-Friendly

While we don't yet have a definitive process for achieving this abstraction, we know what steps to take. For starters, creating a wallet should be as easy as entering an email and password, alongside a clear method for password recovery. Relying on a seed phrase is impractical as it presents an obstacle to new users.

Additionally, we should move toward a singular wallet that consolidates all funds in one location, enabling smooth transactions across various networks. The complex procedures associated with cross-chain transfers, transaction approvals, and ensuring sufficient funds for gas fees need to be simplified to a single click.

Smart contracts should become as unobtrusive as TCP/IP because users are only concerned about their functionality. Liquidity is another aspect that should be simplified, while still being accessible for seamless token swaps. Furthermore, gas fees must become more user-friendly, allowing payments in any token rather than requiring Ethereum to transact with other currencies. Otherwise, users will find the system confusing.

Driving Crypto Forward

The overwhelming success of social media apps like Facebook and Instagram lies in their intuitiveness. These platforms can be used with virtually no learning curve, capturing user interest effectively. Abstraction should become the central goal for blockchain, removing all intricacies to reveal the true benefits of web3.

It's clear that we need to act now. The internet began evolving in the 1980s, and by 2001, over 55% of Americans were online—a swift mainstream adoption. In contrast, while crypto is now well into its second decade, it hasn't gained comparable popularity.

Despite significant progress marked by numerous coins and blockchains as well as real-world assets and NFTs, users still grapple with multiple wallets, confusing seed phrases, and intricate cross-chain operations. Unlike the seamless experience of the early internet, the crypto landscape remains daunting.

To promote user understanding and enjoyment, blockchain's visibility should be minimized. Ultimately, the focus should shift away from ideological debates and the complexities of layer-2 networks. Users want smooth applications that function effectively—what truly matters is ensuring these systems work easily, without needing to clarify their intricacies.