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
Bitcoin is the world’s oldest and biggest digital currency by market cap. Created in 2009 by an unknown person (or persons) using the alias Satoshi Nakamoto, Bitcoin is a form of decentralised electronic cash designed to provide a viable alternative to traditional fiat currency.. Rather than having to deal with a centralised authority such as a bank to process transactions, Bitcoin holders ... Bread Wallet is a simple mobile Bitcoin digital wallet that makes sending bitcoins as easy as sending an email. The wallet can be downloaded from the App Store or Google Play. Bread Wallet offers a standalone client, so there is no server to use when sending or receiving bitcoins. That means users can access their money and are in full control of their funds at all times. Overall, Bread Wallet ... Are you looking to spend your bitcoins and Altcoins but cannot find enough online sites to accept them?. Well look no further, here I’ve found ways for you to pay with bitcoins on popular sites like Amazon or eBay! If you missed my last blog post on The 3 Best Stock Trading Website for Beginners Offering Bitcoin Read on…. In 2017, I began to notice the effects of inflation eating up my ... Similarly, you can spend bitcoin at Antwerp to buy diamonds or other jewelry. Wikipedia. Wikipedia is the go-to source for students that help them write essays. Although lecturers emphasize that this is not the authentic source of information, it is still a life-saver when understanding the rough idea about your topic. My Bitcoin Saver is a service for users that want to buy Bitcoin, ... That’s a pretty easy way to buy Bitcoin. The My Bitcoin Saver Verdict . My Bitcoin Saver is an interesting option for users that are very new to the world of cryptocurrency. If you still feel insecure about investing, with an investment of as little as $80 per month, you can start to buy Bitcoin and see if you really like ... Easy setup, user-friendly. 1000+ cryptocurrencies supported. One of the most affordable hardware wallets. Lightweight. One of the difficulties faced by early adopters is to store their cryptocurrencies safely. With ledger Nano S, you’ll find keeping your cryptos safe easy when compared with any other alternative. Saver IRA Features. Saver IRA allows ... If you are looking to start investing into cryptocurrencies, consider Bitcoin IRA as a service. It’s easy to use from start to finish, and they’ve partnered with BitGo Trust so you don’t have to worry about your funds. If this service isn’t for you, consider looking at more alternatives. Fundrise is an automated investing service for the real ... Binance: 3%: 14-days lockin: BNB, BTC, USDT, ETH, ADA: Okex by Piggybank: 3-5% (Variable) Instant: BTC, ETH, EOS, XRP, USDT, LTC, ETC, TRX: Nexo: 8%: Instant: All StableCoins: Compound finance: WBTC (0.17%), DAI (8-11%) Instant: WBTC, ETH, DAI, USDC, REP, ZRX: Best websites to Earn Bitcoin interest: Bitcoin Saving accounts 1. Piggybank by OKEx. If you are someone who is into regular crypto ... It’s easy to find exchanges that accept bank transfers, credit card payments, debit card payments, and PayPal, for example. However, each of these payment methods is tied to your personally-identifiable information. If you want to avoid being tracked, then you need an exchange that offers cash or cash deposit exchanges. Reputation. Try to pick a trusted, long-standing Bitcoin exchange. Sure ... Although Binance accepts credit card deposits, the Siacoin Binance trading pairs don’t include USD. You would either have to first use your USD to buy one of the tokens that pair with Siacoin (BTC, ETH, USDT, and BNB) or use some cryptocurrency you already own to make your purchase. We’ll assume you have some Bitcoin in a personal wallet and want to use some of those to buy SC. Step 1 ...
[index]          
Consumers can quickly buy gift cards from hundreds of retailers such as Adidas, Best Buy, Hulu, Lowe’s, Nike, and Uber using their favorite cryptos such as bitcoin, litecoin, ethereum or tether ... 10 Awesome Stores That Accept Bitcoin Payment Bitcoin Payment Explained Have you ever asked yourself if there’s a store where you can spend your bitcoins w... I showcase how to buy bitcoin/etherium/litecoin/bitcoin cash and bring it to the binance exchange. HOW TO BUY BITCOIN 2019 - EASY Ways to Invest In Cryptocurrency For Beginners! Get $10 of free Bitcoin when you buy or sell at least $100 of cryptocurrency o... Binance save 10%: https://www.binance.com/en/register?ref=LUKU79QJ In this Video I am going to show you how to buy Ripple (XRP) on Binance. You will learn ho... Get an additional $10 in Bitcoins from Coinbase when purchasing through my referral link http://fredyen.com/get/Bitcoins Here is a quick beginner's guide on ... Follow Altcoin Daily: https://www.youtube.com/channel/UCbLhGKVY-bJPcawebgtNfbw/videos Protect your crypto with a Ledger - the world’s best hardware wallet: h... Subscribe to my bitcoin channel - https://calcur.tech/subscribe-curryncyUpdated video - https://www.youtube.com/watch?v=n5Q-A5BVw98 Join Coinbase and earn $10 a... If you are looking for ways on how to buy bitcoin with credit card, how to get bitcoin or how to buy bitcoin in coloumbia, Argentina, Mexico Brasil and Spain then this is the perfect video for you! Binance CEO Changpeng Zhao (CZ) gives us his thoughts on where cryptocurrency markets, Bitcoin and Binance are headed in 2020. Plus he openly addresses Binance's role in the recent Steem voting ...