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Use Cases for Blockchain Gain momentum with a simpler UX
End users of technologies don’t want to think: they just want to use. And out-of-the-box usability is especially essential when it comes to next-generation innovations disrupting payments and commerce.
This, however, can sometimes be at odds with the mindset of innovative technology builders, who spend much of their waking moments designing new efficiencies or coding complex new capabilities, and less time thinking about usability from the perspective of public view that has a naked fragment of their technical know-how.
Take, for example, the cryptocurrency sector and its passkeys, blockchains and the history of the technological language reserved for insiders. Terms like “hashing,” “public/private keys,” “digital signatures,” and “zero-knowledge proofs” are complex and non-intuitive to most users, while words like “nodes,” “miners,” consensus” and “smart contracts” can be confusing without a 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 firms, with observers interpreting it as a sign of market maturation. A market maturation focused 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 scale up and gain wider adoption in payments, it is crucial to focus on ease of use in targeted use cases, rather than solely on technology and engineering capabilities. After all, traditional payment systems like credit cards and digital wallets are already easy to use and rely on established, almost invisible transaction behaviors. To compete or scale, cryptocurrencies must match or exceed the ease of use of these established systems.
And the new market moves from traditional financial services operators, including MasterCard AND PayPalshow the emergence of a new focus on simplifying the most complex aspects of cryptocurrencies by creating more intuitive and easy-to-use experiences, essential for wider adoption.
to know more: Can Blockchain Solve the Cross-Border Payments Puzzle?
Growing adoption of digital assets by traditional payment companies
Last Wednesday (May 29), it was announced that PayPal’s stablecoin, PayPal USD (PYUSD), was made available on Solana blockchain in a move designed to make the stablecoin faster and cheaper to use, giving users the choice between multiple blockchains for greater flexibility and control.
Solana’s current transaction processing speed 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 he was adding PayPal PYUSD stablecoin to its payment services. According to the company’s release, Triple-A aims to more than double its payments volumes by the end of 2024, with the help of the PYUSD integration.
Mastercard also last Wednesday introduced a crypto credential that allows cryptocurrency holders to transact without using long and complex blockchain addresses.
The day before, Tuesday (May 28), infrastructure company Web3 MoonPay launched Web3 Tools, a platform for “building ready for the mainstream digital experiences.” MoonPay said several high-profile brands have already used the platform, including MasterCard, Gucci, Puma AND Adidas.
After all, mainstream-ready features and conveniences, such as settlement speed, cost, and attention to user experience, are exactly what will be needed to grow digital asset adoption and allow cryptocurrencies to become widespread . take deeper steps in the world of traditional finance.
To know more: The Solana Foundation is betting everything on Blockchain as a mainstream payment platform
Move from usability to use cases
Focusing on ease of use is vital to the widespread adoption of cryptocurrencies. While technological advances and engineering capabilities are important, they must be paired with user-friendly designs and interfaces to attract and retain users, integrate seamlessly with existing systems, and compete effectively with traditional payment methods.
“It is important to know that cryptocurrencies are not just Bitcoin, Doge and NFTs,” Sheraz Sherepayment manager at Solana Foundation, he told PYMNTS. “… Blockchains are really alternative binaries for payments and financial activities… One problem has been the technology has not been easy to use, it was all designed by the engineers… to be very technology focused and not use case or UX focused.”
Simplifying the user experience ultimately leads to higher adoption rates, greater trust, and a more inclusive financial ecosystem, but all this means is that the usability of cryptocurrencies is not directed at a real use case with impact in the real world.
And one of the most interesting opportunities for cryptocurrencies to showcase their usability is in the context of cross-border payments.
PYMNTS Intelligence finds that when it comes to cross-border payments, blockchain solutions could do it offer benefits compared to traditional systems. This is because blockchain’s high productivity, low fees, and 24-hour availability could eliminate much of the friction of cross-border transactions, making each one as easy as sending a Venmo payment.
However, one area that needs work to increase usability will be the creation of tools within cryptocurrencies to help regulators and payment operations teams operate better. After all, in the world of traditional monetary circulation, things tend to run well, or at least relatively smoothly, thanks to extensive tools for anti-fraud and other compliance needs. Similar tools may need to be developed and implemented in the blockchain.
According to PYMNTS Intelligence, 52% of traditional financial firms considering blockchain and cryptocurrency adoption said this unclear legislation was their main concern.
But progress and progress are being made. “Big banks and financial institutions are much more interested today than they were five or six years ago, when we launched some products for the first time,” Brooks Entwistlesenior vice president of global customer success and managing director at Ripple, he told PYMNTS last fall. “You certainly almost never saw the boardroom when you raised the topic of blockchain and especially cryptocurrencies in the early days.”
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