Bitcoin
Use cases for Blockchain gain momentum with simpler UX
End users of technologies don’t want to think – they just want to use. And out-of-the-box usability is particularly essential when it comes to next-generation innovations disrupting payments and commerce.
This, however, can sometimes be at odds with the mindset of creators of innovative technologies, who spend much of their time devising new efficiencies or coding new and complex capabilities, and less time thinking about usability from the perspective of audiences who have a small slice of their technical knowledge.
Take, for example, the crypto sector and its access keys, blockchains and the history of the insider-only techno language. Terms like “hashing”, “public/private keys”, “digital signatures” and “zero-knowledge proofs” are complex and unintuitive to most users, while words like “nodes”, “miners”, “consensus algorithms ” and “smart contracts” can be confusing without technical background.
That’s why, with the recent news that the New York State Department of Financial Services (DFS) has introduced new customer service guidelines for cryptocurrency companies, observers are interpreting this as a sign of market maturation. A maturation of the market that focuses on removing the technical jargon and complexities that make cryptocurrencies difficult for the average person to understand and use.
This is because for cryptocurrencies to grow and gain wider adoption in payments, it is crucial to focus on ease of use in specific use cases, rather than just technology and engineering capabilities. After all, traditional payment systems like credit cards and digital wallets are already easy to use and are built on established, nearly invisible transaction behaviors. To compete or scale, cryptocurrencies need to match or exceed the ease of use of these established systems.
And new market moves from traditional financial services players, including MasterCard It is PayPalshow the emergence of a new focus on simplifying the most complex aspects of cryptography, creating more intuitive and user-friendly experiences essential for wider adoption.
Read more: Can Blockchain Solve the Puzzle of Cross-Border Payments?
Growing adoption of digital assets by traditional payment companies
Last Wednesday (May 29th), it was announced that PayPal’s stablecoin, PayPal USD (PYUSD), was being made available on Solana blockchain in a move designed to make stablecoin faster and cheaper to use by giving users the choice of multiple blockchains for greater flexibility and control.
Solana’s current transaction processing rate of 1,423 transactions per second (tps) was reportedly a key factor in the decision, as retail applications require the ability to sustain at least 1,000 tps. In comparison, other popular blockchains like Ethereum only process 12 to 15 tps.
And financial institution based in Singapore Triple A also announced was adding from PayPal Stablecoin PYUSD to your payment services. According to a company statement, Triple-A intends to more than double its payment volume by the end of 2024, with the help of PYUSD integration.
Mastercard also last Wednesday introduced a cryptographic credential that allows cryptocurrency holders to carry out transactions without using long and complex blockchain addresses.
One day earlier, Tuesday (May 28), infrastructure company Web3 LuaPay launched Web3 Tools, a platform to “build ready for mainstream digital experiences.” MoonPay said several high-profile brands have already used the platform, including MasterCard, Gucci, Puma It is adidas.
After all, conventional features and conveniences like settlement speed, cost, and focus on user experience are exactly what will be needed to increase adoption of digital assets and enable crypto make deeper inroads in the world of traditional finance.
See more information: Solana Foundation bets everything on Blockchain as a conventional means of payment
Moving from usability to use cases
Focusing on ease of use is vital to the widespread adoption of cryptocurrencies. While technological advancements and engineering capabilities are important, they must be combined with user-friendly designs and interfaces to attract and retain users, integrate seamlessly with existing systems, and compete effectively with traditional payment methods.
“It’s important to know that crypto isn’t just about bitcoin, Doge and NFTs,” Sheraz Sherehead of payments Solana Foundation, said PYMNTS. “… Blockchains are really alternative rails for payments and financial assets… One problem is that the technology it was not easy to use, everything was designed by engineers… to be very technology-centric and not use-case or UX-centric.”
Ultimately, simplifying the user experience leads to higher adoption rates, greater trust, and a more inclusive financial ecosystem – but all of this means that crypto usability is not targeted at a true use case with real-world impact.
And one of the most attractive opportunities for crypto to showcase its usability is in international payments.
PYMNTS Intelligence found that when it comes to cross-border payments, blockchain solutions could offer advantages compared to traditional systems. This is because blockchain’s high throughput, low fees, and 24-hour availability can remove much of the friction of international transactions, making each one as easy as sending a Venmo payment.
Still, one area that needs work to increase usability will be building tools within crypto to help regulators and payment operations staff operate better. After all, in the world of traditional money movement, things tend to work well – or at least relatively well – due to extensive anti-fraud tools and other compliance needs. Similar tools may need to be developed and deployed on the blockchain.
According to PYMNTS Intelligence, 52% of traditional financial firms considering blockchain and crypto adoption said unclear regulation was his main concern.
But progress and inroads are being made. “The big banks and financial institutions are much more interested today than they certainly were five or six years ago when launched some products for the first time,” Brooks EntwistleSenior Vice President of Global Customer Success and Managing Director of Curling, told PYMNTS last fall. “You certainly almost never saw the boardroom when you brought up the topic of blockchain and especially cryptography in the early days.”
See more at: Blockchain, cryptocurrency, digital consents, MasterCard, Lunar payment, New York State Department of Financial Services, News, PayPal, PYMNTS News, Solana, stable coins, Technology, Triple A, Web3