Can they overcome the product limitations of blockchain and deliver the world-class experience that consumers expect?submitted by mickhagen to genesisblockhq [link] [comments]
This is the second part of Crypto Banking Wars — a new series that examines what crypto-native company is most likely to become the bank of the future. Who is best positioned to reach mainstream adoption in consumer finance?
While crypto allows the world to get rid of banks, a bank will still very much be necessary for this very powerful technology to reach the masses. As we laid out in our previous series, Crypto-Powered, we believe companies that build with blockchain at their core will have the best shot at winning the broader consumer finance market. We hope it will be us at Genesis Block, but we aren’t the only game in town.
So this series explores the entire crypto landscape and tries to answer the question, which crypto company is most likely to become the bank of the future?
In our last episode, we offered an in-depth analysis of big crypto exchanges like Coinbase & Binance. Today we’re analyzing non-custodial crypto wallets. These are products where only the user can touch or move funds. Not even the company or developer who built the application can access, control, or stop funds from being moved. These apps allow users to truly become their own bank.
We’ve talked a little about this before. This group of companies is nowhere near the same level of threat as the biggest crypto exchanges. However, this group really understands DeFi and the magic it can bring. This class of products is heavily engineer-driven and at the bleeding-edge of DeFi innovation. These products are certainly worth discussing. Okay, let’s dive in.
Users & AudienceThese non-custodial crypto wallets are especially popular among the most hardcore blockchain nerds and crypto cypherpunks.
“Not your keys, not your coins.”This meme is endlessly repeated among longtime crypto hodlers. If you’re not in complete control of your crypto (i.e. using non-custodial wallets), then it’s not really your crypto. There has always been a close connection between libertarianism & cryptocurrency. This type of user wants to be in absolute control of their money and become their own bank.
In addition to the experienced crypto geeks, for some people, these products will mean the difference between life and death. Imagine a refugee family that wants to safely protect their years of hard work — their life savings — as they travel across borders. Carrying cash could put their safety or money at risk. A few years ago I spent time in Greece at refugee camps — I know first-hand this is a real use-case.
Or imagine a family living under an authoritarian regime — afraid that their corrupt or oppressive government will seize their assets (or devalue their savings via hyperinflation). Citizens in these countries cannot risk putting their money in centralized banks or under their mattresses. They must become their own bank.
These are the common use-cases and users for non-custodial wallets.
Products in MarketLet’s do a quick round-up of some of the more popular products already in the market.
Web/Desktop The most popular web wallet is MetaMask. Though it doesn’t have any specific integration with DeFi protocols yet, it has more than a million users (which is a lot in crypto land!). Web wallets that are more deeply integrated with DeFi include InstaDapp, Zerion, DeFi Saver, Zapper, and MyCrypto (disclosure: I’m an investor and a big fan of Taylor). For the mass market, mobile will be a much more important form-factor. I don’t view these web products as much of a threat to Genesis Block.
Mobile The more serious threats to Genesis Block are the mobile products that (A) are leveraging some of the powerful DeFi protocols and (B) abstracting away a lot of the blockchain/DeFi UX complexity. While none get close to us on (B), the products attempting this are Argent and Dharma. To the extent they can, both are trying to make interacting with blockchain technology as simple as possible.
A few of the bigger exchanges have also entered this mobile non-custodial market. Coinbase has Wallet (via Cipher Browser acquisition). Binance has Trust Wallet (also via acquisition). And speaking of acquisitions, MyCrypto acquired Ambo, which is a solid product and has brought MyCrypto into the mobile space. Others worth mentioning include Rainbow — well-designed and built by a small indy-team with strong DeFi experience (former Balance team). And ZenGo which has a cool feature around keyless security (their CEO is a friend).
There are dozens of other mobile crypto wallets that do very little beyond showing your balances. They are not serious threats.
Hardware Wallets Holding crypto on your own hardware wallet is widely considered to be “best practice” from a security standpoint. The most popular hardware wallets are Ledger, Trezor, and KeepKey (by our friends at ShapeShift). Ledger Nano X is the only product that has Bluetooth — thus, the only one that can connect to a mobile app. While exciting and innovative, these hardware wallets are not yet integrated with any DeFi protocols.
StrengthsLet’s take a look at some of the strengths with non-custodial products.
WeaknessesNow let’s examine some of the weaknesses.
Wrap UpOne of the great powers of crypto is that we no longer depend on banks. Anyone can store their wealth and have absolute control of their money. That’s made possible with these non-custodial wallets. It’s a wonderful thing.
I believe that the most knowledgeable and experienced crypto people (including myself) will always be active users of these applications. And as mentioned in this post, there will certainly be circumstances where these apps will be essential & even life-saving.
However, I do not believe this category of product is a major threat to Genesis Block to becoming the bank of the future.They won’t win in the broader consumer finance market — mostly because I don’t believe that’s their target audience. These applications simply cannot produce the type of product experience that the masses require, want, or expect. The Weaknesses I’ve outlined above are just too overwhelming. The friction for mass-market consumers is just too much.
The winning bank will be focused on solving real user problems and meeting user needs. Not slowed down by rigid idealism like censorship-resistance and absolute decentralization, as it is with most non-custodial wallets. The winning bank will be a world-class product that’s smooth, performant, and accessible. Not sluggish and slow, as it is with most non-custodial wallets. The winning bank will be one where blockchain & crypto is mostly invisible to end-users. Not front-and-center as it is with non-custodial wallets. The winning bank will be one managed and run by professionals who know exactly what they’re doing. Not DIY (Do It Yourself), as it is with non-custodial wallets.
So are these non-custodial wallets a threat to Genesis Block in winning the broader consumer finance market, and becoming the bank of the future?
No. They are designed for a very different audience.
Other Ways to Consume Today's Episode:
Download the app. We're a digital bank that's powered by crypto: https://genesisblock.com/download
Coinbase Donates Cryptocurrency to Syrian Refugees in Greece. Coinbase, another cryptocurrency exchange began a “12 days of Christmas” event on December 10. The platform has so far, donated $10,000 Bitcoin’s worth to Syrian refugees living in Greece. Therefore, this is another humanitarian service from a reputable company in the crypto ... Asides Binance, Coinbase, a cryptocurrency exchange recently concluded its 12 days of Christmas event. On the 5th day of the event, the exchange donated $100,000 worth of Bitcoin to Syrian refugees living in Greece. The company revealed that these people found it difficult to gain access to financial services and as such, they had settled to ... Binance CEO Changpeng Zhao has apologized for causing concern among the crypto community when he openly spoke about the possibility of a rollback for the Bitcoin blockchain following confirmation of a hack leading to the theft of USD 40 million worth of bitcoins on its platform.. The rollback had caused a sharp backlash, particularly among Bitcoin-only communities, aghast at the very concept ... Binance traced the cryptocurrency theft — more than 7,000 bitcoins at the time of writing — to a single wallet after the hackers stole the contents of the company’s bitcoin hot wallet. Binance, the world’s largest cryptocurrency exchange by volume, said the theft impacted about 2 percent of its total bitcoin holdings. More than 13,000 refugees from Syria and other countries gathered in Turkey at border crossings with Greece. Earlier, Turkish authorities announced that they would not impede their movement into EU countries. Ankara said that would open its borders with the European Union for refugees. The officials added that since the EU does not fulfill its ... On April 2, 2020, Binance posted on its blog that it acquired CoinMarketCap.com (CMC), the best known crypto data site. It’s been reported that the size of the deal was $400 million in a cash and equity and that Brandon Chez, the founder of CMC was stepping down. He was replaced by Carylyne Chan, CMC’s […] The Hellenic Bitcoin Community (HBC) is hosting its first Blockchain Hackathon in Athens, Greece on October 17, 2015. The Chainthon — as it’s called — will be hosted at Orange Grove (Leoforos Vasileos Konstantinou 5), offering a fun-filled coding experience and discussions for everyone involved. The theme of the event is called “We Hack Crisis,” derived from the economic crisis ... Bitcoin goes Retail; Binance invests in MobileCoin; Vitalik vs. CoinDesk The Blockchain Bitcoin & Crypto Weekly CXO Briefing is all you need to know, each week, jargon free for CXO level business leaders and investors who will use this technology to change the world. Each week we select the 3 news items that matter and explain why and link to one expert opinion . For the intro to this weekly ... Greece on Wednesday carried out the first relocation of asylum seekers from its territory to Luxembourg, part of an EU approved plan to ease the burden on border nations inundated by this year’s influx of thousands of refugees. Six families from Syria and Iraq were being relocated from Athens, among the first under a 780-million-euro, […] Binance users can now buy Bitcoin with practically all of the fiat currencies in existence; Binance, which is one of the leading cryptocurrency exchanges in the world, has partnered with the peer-to-peer crypto exchange Paxful. Via this partnership, Binance users can now use 167 different fiat currencies to buy Bitcoin.
[index]          
Crypto Crash Greece Όλα τα κρυπτονομίσματα πέφτουν εδώ και κάποιες ημέρες. Τι κάνω? Τα καλύτερο ανταλλακτήριο crypto ... Bitcoin πως αναγνωρίζω τα πραγματικά κρυπτονομίσματα. Τα καλύτερο ανταλλακτήριο crypto Το πρώτο ενημερωτικό κανάλι στην Ελλάδα για τo Bitcoin, τα κρυπτονομίσματα, τις ICO, την παγκόσμια και εγχώρια ... $120,000 Bitcoin technical analysis trading with Crypto Beadles. Ethereum, HEX, crypto. ... Austerity and Neoliberalism in Greece with Richard Wolff and Barry Herman The New School - Duration: 1 ... Andreas Antonopoulos Greek sub - Bitcoin διακίνηση χρημάτων Ακολούθησε το κανάλι μου http://bit.ly/dimis-youtube Andreas ... Σε αυτό το κανάλι θα βρείτε χρήσιμες πληροφορίες για τα κρυπτονομίσματα, όπως πως να τα χρησιμοποιήσετε ή ... Bitcoin και Altcoins ΓΙΑ ΗΛΙΘΙΟΥΣ: Όλοι Οι Λόγοι Για να Μην Ασχοληθείς Με Mining ή Επενδύσεις - Duration: 49:57. PCsteps.gr 64,912 views 49:57 Bitcoin και Altcoins ΓΙΑ ΗΛΙΘΙΟΥΣ: Όλοι Οι Λόγοι Για να Μην Ασχοληθείς Με Mining ή Επενδύσεις - Duration: 49:57. PCsteps.gr 64,595 views 49:57 Τα καλύτερα ανταλλακτήρια κρυπτονομισμάτων Binance: http://bit.ly/binance-greece και Kucoin: http://bit.ly/Kucoin-greece ... 🟡Binance Futures 10% Off Fees Code: https://accounts.binance.com/en/register?source=futures&ref=sunnydecree 🟡Binance Signup 20% Off Fees for Altcoins: https:...