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
Digital money that’s instant, private, and free from bank fees. Download our official wallet app and start using Bitcoin today. Read news, start mining, and buy BTC or BCH. How Bitcoin Mining Works. Before you start mining Bitcoin, it's useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. Binance; Binance Charity Foundation; Binance US; Bingbon; bingbon exchange; bingbon review; BitClub; Bitcoin; Bitcoin Addresses ; Bitcoin Bull Run; Bitcoin Cash; Bitcoin Mining. Bitcoin Miners Saw 23% Revenue Increase in August. Coindesk-September 1, 2020 0. Miners generated an estimated $368 million in August. Read more. Bitcoin Mining. Canaan’s Q2 Loss Narrows to $2.4M From Q1 on 160% ... 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’s technology is used by more than 30 exchanges around the world today, including Binance Uganda. Binance Jersey brings a world-class trading experience. Binance – Exchange And Login For Trade. Here are a few reasons why Binance is the best place to start. Secure and Reliable State-of-the-art safe storage technology for maximum ... Making money mining bitcoin is much more difficult today. Some of the issues contributing to this difficulty include: Hardware prices. The days of mining using a standard CPU or graphic card are gone. As more people have begun mining, the difficulty of solving the puzzles has too increased. ASIC microchips were developed to process the computations faster and have become necessary to succeed ... You can earn cryptic money by mining, without having to deposit money.However, you certainly don't have to be a miner who has his own encryption. You can also buy crypto by using the Fiat currency (USD, EUR, AUR, etc.); you can trade on a stock exchange like Bitstamp using another crypto (for example: Using Ethereum or NEO to purchase Bitcoin); You can even win by playing video games or by ... Total Customer: 118350 Total Mining : 29.8069 BTC Last Proof of Payment Bitcoin. You can review Bitcoin payments. Regular payments are made.Bitcoin mining began to grow day by day, from all over the world People doing cloud gpu mining and in this way they provide very good incomes. Central banks around the world are printing money to try to prop up the global economy. But for bitcoin, the world's most popular digital currency, the opposite is happening. Explanation about what is is Bitcoin by CNN Money. source
[index]          
CryptoRobert's quick and easy tutorial on how easy it is to send Bitcoin or Ethereum to Binance using GDAX. You read that correctly. ANYONE can use GDAX to quickly fund not just your Binance ... Binance Pool has received mixed responses from the crypto community, with some commentators expressing concerns that Binance's pool will result in a further centralization of Bitcoin ( BTC ) hash ... Binance - How to Trade CRYPTO and earn money - TUTORIAL FOR BEGINNER ! - Duration: 24:45. CryptoZ 128 views. 24:45. Trading vs. Investing is made CRYSTAL CLEAR by CZ Binance and Warren Buffet's ... Off The Chain #238: PlanB on Why Bitcoin’s Stock-To-Flow Model Is Becoming More Accurate Over Time - Duration: 1:05:59. Anthony Pompliano 41,748 views 1:05:59 #BINANCE #BITCOIN I'm Eren Caner , in this episode I'm talking about Binance. Binance got hacked? All money lost? Binance shut down? Effect on Bitcoin and altcoin? Here the discussion. Leave your ... A $2000 investment turned into me spending $100,000 dollars building a custom shed for cryptocurrency and Bitcoin mining. Here's the story of Drew Vosk and t... Community Shocked That Binance Suggest Bitcoin Reorg After Hack MrSotko CryptoCurrency . Loading... Unsubscribe from MrSotko CryptoCurrency? Cancel Unsubscribe. Working... Subscribe Subscribed ...