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
Binance, the #1 spot cryptocurrency exchange in the world with USD 0.5-1 billion of daily trading volume, will launch the Binance decentralized exchange (DEX) in early 2019.. A video preview and the launch of its own blockchain has seen a major rally for its native token, BNB, with its market cap increasing USD 150 million, rocketing it to #13 on CoinMarketCap with a market cap of USD 800 million. Coming Soon: Self-Sovereign Digital Identity for Refugees 0. By The-eCoin on ... This might be a game changer to refugees that don’t have any of proving their identity. Gravity Earth presented its project at TechCrunch Disrupt Berlin where the Startup was able to paint a clear picture of how blockchain can be used to enable refugees to access funds and different assets to improve their ... Changpeng Zhao Relieved To See An Increased Bitcoin Volatility. Changpeng Zhao, the CEO of Binance seems to be happy about increased volatility in Bitcoin (BTC) and the crypto market in general. Binance is the largest digital asset exchange in the world in terms of trading volume and it is also one of the most popular. Binance Coin (BNB): Fall Before The Boom ? The market for cryptocurrencies has been quite interesting in recent days. Bitcoin, the main reference of the ecosystem is monopolizing not only the attention but also the capital of the market, with an ascendant domain of 58% at the time of writing, in an incipient ecosystem that struggles to reach $ 190 billion dollars. Aus den Bitcoin Trader Erfahrungen anderer Nutzer ergibt sich also ganz sicher kein repräsentatives Gesamtbild, weshalb ein neutraler Blick auf Bitcoin Trader auch etwas schwierig ist. Denn nur wenige User, die ihre Erfahrungen und Meinungen kundtun, haben sich mit den Grundprinzipen, welche hinter Bitcoin Trader stecken, tatsächlich auseinandergesetzt. Now Lightning Network is coming to life and Bitcoin is gearing up to take on legacy payment systems. A month ago, Lightning Labs took a major step to making the Lightning Network dream a reality, by releasing the beta version of their highly anticipated Lightning Network Daemon (LND). The launch of the the Lightning Network is the first ever Layer 2 solution that is built on top of the current ... Blockchain firm gives refugees aid and identity Some of the most innovative developments in financial tech are coming out of the developing world, where populations denied for decades the type of access to banking services that others enjoyed are finding new ways of handling money and transacting commerce. Some of the most innovative developments in financial tech are coming out of the ... What a fuss Bitcoin is making in recent days! Tons of articles, reviews and surveys are coming out with only one goal — to predict whether it will stop falling and jump up to reach a new ceiling, or if we’ll see new depths on the BTC charts. It goes on to say that “if our generosity stretched that far in welcoming Belgian refugees in the First World War, Jewish refugees before the Second World War, Germans afterwards, Hungarians fleeing the 1956 uprising, even a few Chernobyl survivors (some soon to die)” then why are we not doing the same for the refugees who are coming in from the middle east and Islamic countries? Well, one ... More exchange features coming. Moreover, the firm hints at introducing more exclusive features in the near futures in order to keep their partners happy. “staking and OTC (over-the-counter) trading services, as well as token launch capabilities via an IEO (initial exchange offering) platform.” The newest South Karean cryptocurrency exchange. Binance‘s South Korean cryptocurrency exchange ...
[index]          
Bitcoin Technical Analysis & Bitcoin News Today: On Binance and BitMEX you can trade the altcoins when the altcoin boom comes. Also, I'll use technical analysis on the Bitcoin price to make a ... This is Bitcoin's time to shine. Some huge changes are happening in the crypto space and this is a make or break year for crypto. Will there be a bull run end of 2020? Will the Bitcoin halving and ... In this video we talk about some likely scenarios for a coming Bitcoin Breakout. There is a very possible chance that Bitcoin will test support on the 20 exponential moving average and then break ... #bitcoin #twitter #crypto #interest #stockmarket #recession #bearmarket #bullmarket #davincij15 #mmcrypto #btc #bitcoinprice #bitcointoday #crash #economy #inflation #ecb #fed #federalreserve # ... Is it the calm before the storm? Binance opens trading and not much has happened. But is a huge breakout coming? Let's take a look. Become a CryptosRus INSIDER to gain exclusive insight on the ... CZ of Binance says an alt coin rally is on the way! https://www.youtube.com/watch?v=tMTxOfMWiKE&feature=youtu.be https://twitter.com/LHeilpern/status/1148182... Make Money Off Of The Bitcoin 'Carry Trade' Binance Smartphone Coming RBC Crypto Exchange Coming In today's crypto news, crypto analyst Plan B reveals his Bitcoin Carry trade that will net you ...