Decentralization And Empowering Users, Says Cypto Industry

2022 has been the most dramatic year ever for crypto. 2021 ended with a frenzy of enthusiasm, with BTC reaching its ATH only weeks ago. 2022 was about consolidating the win, furthering adoption, and cementing the industry’s place in the mainstream.

As we know now, things turned out a little differently. To get a sober check on the industry, BeInCrypto spoke to around 50 industry members to get a glimpse of crypto in 2023.

As part of our research into the future of the industry, we spoke to both developers and executives from a number of projects, large and small. One important takeaway from our work was that decentralization needs to be front and center again.

One of the major points of weakness in the industry is the lack of transparency. FTX was able to misappropriate users’ funds in large part because no one could see behind the scenes. On December 19, Caroline Ellison, the former head of Alameda Research, a business affiliate of FTX, pleaded guilty to seven criminal charges. She told a New York judge that the company had access to an undisclosed “unlimited line of credit at FTX.com”.

Decentralize Now!

This opacity poisons the well for the entire industry and creates a path to adoption. What bad actors like Sam Bankman-Fried have done is put a crypto spin on the traditional scamssays Jonathan Zeppettini, Strategy Lead decided, “In many cases, the intended use of cryptocurrencies will shield users from the risk of these negative consequences,” he says. “Unfortunately, complacency and greed often get the best of people.”

But, solutions already exist and are ready to use, and this includes self-custody of funds. According to many respondents, all they need is promotion and adoption. “I want to put more emphasis on tooling that empowers users to do that and minimizes the need for separate intermediaries…decentralized exchange As such Uniswap and DCRDEX can replace most traditional centralized exchanges and may even prevent another FTX event from being possible.

The risks of centralized exchanges were demonstrated over a decade ago with the Mt. Gox hack. By early 2014, the exchange was handling over 70% of all bitcoin transactions. However, the early giants of crypto imploded after a series of intrusions, losing hundreds of thousands of bitcoins then worth hundreds of millions in USD. Says 2022 has forced us to learn the same lesson justin bannonCEO of Boson Protocol.

Crypto in 2023 will have to get in the habit of making a case for itself again. “Decentralization can offer solutions to these issues and provide permissionless and trustless transactions as well as self-custody of assets. I predict we will start to see non-custodial and decentralized solutions re-emerging.” Will give as people start to see the value in trust and decentralization.

Empowering Users Also Means Education

Several respondents were also candid about their views on the lack of education for non-crypto natives. Technical jargon and heavy and complicated UIs create high barriers to entry, he said. Being “educated” doesn’t necessarily mean having developer-level knowledge about the various protocols. However, users should be in a better position to understand the relative benefits between different projects.

“When a user is in a position to interact with a new protocol, it is up to each project to make onboarding as easy as possible for their user,” says Eric Chen, CEO of Injective Labs. “For example, easy access to on-ramps with fiat is important for users, as it is a familiar process for users across the board… In addition, to simplify the UI without interface users Allowing access to the actual product is just as important as helping with the technical jargon [the] Adoption of mainstream users. ,

BeInCrypto also heard how education needs to extend beyond how to interact with different protocols. Incoming users and potential converts need to understand the value of the technology itself. “If we focus on teaching people the principle, not just ‘cryptocurrency,’ people will grasp the concept faster,” says Daniel Logvin, CEO of Laserbyte. “Currently, the general public thinks that Web3 is only about cryptocurrencies, which is not the case. Now we have smart contracts; we can process almost any type of information in the blockchain. People knowing more about it will be a game changer and will contribute a lot in terms of adoption.

Crypto should be less speculative in 2023

Many observers also see the industry as a vehicle for a new way of making money. However, in 2022, it hasn’t often been a new way lose Funds. but I digress. A 2020 survey The UK’s Financial Conduct Authority found that the majority of holders viewed crypto as a speculative investment. A 2022 study The Ontario Securities Commission found that the second most popular reason for owning crypto was speculation. Several surveys have found similar results.

In our own surveys, we’ve heard that the industry should move away from this and instead focus on use cases. In a market with thousands of coins, tokens and assets, speculation will always exist. But that shouldn’t be the focus or what the space is known for. ,crypto companies Devraj Vardhan, Senior Vice President of Engineering at Ripple, says those making headlines of late tend to speculate excessively, many times to the detriment of their customers.

“We are going to see a change in the type of companies taking center stage – the ones that are using crypto and blockchain technology to solve real problems and not just meet customer needs, they will be in the market for a long time. Will last for a while.”

bring forward the bankless future

One of the dreams of early crypto was a trustless, bankless system. A common thread in BeInCrypto’s conversations was the need to return to this vision. Not because of its idealism but purely for practical reasons, says Reelstar co-founder Navdeep Sharma. “Security and security Decentralized web is better found in 3 platforms that have less human influence due to the implementation of transparent, auditable code such as smart contracts.

BeInCrypto has heard that the potential of this technology is still not fully appreciated. Not only outside the community but also within it. Crypto in 2023 needs to fix that problem.

“As the power is given back to the user, many protocols will continue to break boundaries within the industry,” continues Chain of Injective Labs. “I fundamentally believe that user attention will continue to move DeFi As verticals such as exchanges, lending, prediction markets and derivatives become truly decentralized. In turn, this will bring us all closer to the vision of creating a bankless world controlled by the people.

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