Revolutionizing Blockchain: A Consumer-Centric Approach | Expert Insights

Revolutionizing Blockchain: A Consumer-Centric Approach | Expert Insights

Blockchain technology, a beacon of innovation in the digital era, has made significant strides, yet its practical utility remains under-realized. The early web3 adopters’ enthusiasm, while a blessing, comes with a drawback—often, developers prioritize crypto-natives, inadvertently sidelining usability for non-technical consumers.

The Surge of Crypto Wallets: A Deeper Look

From 2016 to 2022, active crypto wallets surged from 5.7 million to an astounding 80 million, marking a remarkable 14-fold growth. However, the daily transaction count reveals a more modest 40% increase from 2017 to 2021. Academic research highlights a significant hurdle: 81% of respondents express interest in blockchain but find the user effort too burdensome. According to a study from Pohang University of Science and Technology, users consistently find blockchain applications less satisfying than their non-blockchain counterparts.

The Verdict: Prioritizing Consumers for Widespread Adoption

To achieve widespread crypto adoption, a pivotal shift is needed. Developers must prioritize consumers, emphasizing a superior User Experience (UX) and User Interface (UI). The goal is to provide a seamless experience comparable to web2 applications, coupled with a gentle learning curve.

Defining Consumer-Centricity

In the early days of blockchain, technical viability and security were paramount. However, as the audience diversified, especially those less acquainted with the technology, the need for user-friendly interfaces became evident. Consumer-centric projects focus on understanding and meeting consumer needs, emphasizing user-friendliness, intuitive design, streamlined processes, and minimal effort for efficient outcomes.

The Consumer Focus Shortfall and Its Ramifications

While modern blockchain solutions are progressing towards user-friendliness, many still feature complex interfaces and lack transparent onboarding processes. This assumption of user familiarity with concepts like Layer-1 protocols, tokens, gas fees, or bridges leads to disengagement. Slow execution further discourages users, with only 30% of research tasks completed in under ten minutes, as per one study.

Another hurdle is the narrow accessibility of blockchain, requiring users to comprehend various decentralized applications and their intricate interactions. Hidden costs, such as gas fees, and slow transaction speeds also hinder mass adoption. For instance, Ethereum supports 27 transactions per second, whereas Visa can handle 1700. Achieving mass adoption necessitates scaling without sacrificing user experience.

Technology as a Means, Not the End

Blockchain’s operational efficiency peak remains uncertain. Regardless, it’s imperative to view technology as a means, not the end goal. Layer-2 solutions alleviated some L1 blockchain frictions, but a consumer-centric approach takes it a step further. Improving user interface, considering intuitive design, and offering comprehensive onboarding enhance trust, lower entry barriers, and elevate L2 solutions.

Consumer-centric L2 solutions demand robust technological backing. Adapting to evolving user needs requires a shift from a rigid top-down design to a modular approach. Components can be modified individually without destabilizing the overall system. Balancing security, fairness, and execution speed involves a combination of rollups and decentralized sequencers. The fundamental step is recognizing customer needs and pivoting towards a consumer-centric chain. Blockchain has proven its concept; now, let’s make it convenient.

Author: Cecilia Hsueh

Cecilia Hsueh, Co-founder and CEO at Morph, a consumer-centric blockchain Layer-2 platform, brings over a decade of entrepreneurial experience. Founding J.C.Moritz Investment Consulting in 2014, she transitioned into the web3 space as an investor in 2018. Serving as the CEO of Phemex trading platform from 2019 to 2022, Cecilia dedicates four years to web3 projects in her ten-plus years as a serial entrepreneur.

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