In the trustless world of cryptocurrency, trust is still necessary

Just like Satoshi Nakamoto’s Bitcoin (Bitcoin) White paper, the core of cryptocurrency is a peer-to-peer electronic cash system, which eliminates the need for banks and other intermediaries. This energetic independence and ridicule of the control of the traditional banking system prevails in the entire crypto field.

However, when targeting mass adoption, some help is needed in order for everyone to embark on the path of truly decentralized finance. We can’t expect our grandparents-they have a hard time sending emails-to figure out how to manage private keys, seed phrases, and digital wallets without any help, and send your birthday gifts in Bitcoin. In fact, this shift to decentralized finance has gone far beyond sending birthday money, and has developed to include income agriculture, liquidity mining, and irreplaceable token auctions. Therefore, trusted intermediaries have never been more important for realizing the mainstream aspirations of DeFi and cryptocurrencies.

related: Liquid mining is booming-will it continue or will it collapse?

Robots don’t need trust, but humans need

In any civilization, trust is essential to daily life. We trust the opinions of doctors. We believe that the taxi driver will take us where we are going. We believe that the food provided to us by the restaurant is safe to eat. We believe that when the pedestrian signal lights up on the crosswalk, the car will stop.

In the trustless world of cryptocurrency, we still decide who and what we trust. Most of us are not developers or engineers who can analyze the code of each DeFi protocol and each token before participating. Instead, we collect information and evaluate actions to be taken based on what we know. The key issues in this decision-making process are: Do we trust the organization and people behind the agreement? Do we believe that they are in good faith, and the agreement will do what it says?

Research has found that places we trust continue to evolve with the development of new technologies. Although the algorithms for deploying machine learning and artificial intelligence are novel, people increasingly trust algorithms rather than humans.A study was published in Science Daily Established When subjects saw a picture of a crowd and were asked who would be better at reaching the correct number of people in the picture, more people spoke of artificial intelligence rather than humans.At the same time, a different study found that a person’s Believe Technology is highly dependent on their exposure to it, and technical or engineering degrees and familiarity with online algorithms lead to a higher degree of trust in artificial intelligence.

related: Mass adoption of blockchain technology is possible, education is the key

The results of these two studies certainly apply to the world of cryptocurrency. The growing trust in technology has made the adoption of cryptocurrencies so common. Nonetheless, it is important to realize that this adoption occurs at different rates in different demographic data. Those with the most exposure to new technologies—engineers and developers—are the first to adopt it; those with the least exposure and access to resources lag behind. Therefore, those of us who are immersed in the cryptosphere have a responsibility to give priority to those who have less contact. We do not want to end with a “technological monopoly”. In this case, those with more technical knowledge enjoy the highest privileges, while those with the least technical knowledge are denied participation. This hypothetical dystopia runs counter to Bitcoin’s original promise of democratization.

Encrypted usability challenges

We must admit that cryptocurrency brings unique usability challenges.Even among the people who have access to the Internet-currently measuring Approximately 4.66 billion-usage is usually limited to social media, search, and email. These Internet users are satisfied with the email and password login. Adding private key management—a string of confusing numbers and letters that are difficult for the human eye to understand—needs to overcome this unfamiliar problem that network users are used to.

related: Decentralized finance may be the future, but education is still lacking

The core value of “your key, your coin” is to completely change our financial system by giving users control over their assets instead of relying on banks and other centralized third-party service providers. However, this kind of authorization also imposes a burden on many new entrants who may not be ready immediately. We have all heard horror stories about users losing their private keys and being denied access to cryptocurrencies that may be worth millions of dollars.

I don’t think we should insist on throwing newbies into encrypted waters and asking them to swim. Once people get used to managing their private keys, the training wheel will fall off and they can bear the burden (and benefits) of “your keys, your coins” on their own.

Must fully support new users

The proportion of DeFi users is still small.According to ConsenSys Q1 “DeFi Report”, the overall figure is estimated Approximately 1.75 million. Compared with 4.66 billion Internet users, this difference highlights the huge growth opportunity of the crypto economy. I think that exchanges and platforms that put education, user experience, and customer support first will stand out and take the lead this year and 2022, occupying a significant share of this untapped market.

related: In order to accelerate the adoption of cryptocurrency, we must first improve the user experience

Women in particular are a rapidly growing user group, and encryption platforms have not spent enough resources to meet their needs.A CoinGecko 2020 user survey found that only 9% of women even have Hear DeFi. This difference between male and female users is unacceptable.

The only way that cryptocurrency will reach its true potential and give the global user base the ability to control its own value is for us to see the adoption of all demographic data, including gender, age, education, geography and technical knowledge. Therefore, despite the efforts of decentralized technology to eliminate intermediaries, humanization is still critical to the widespread adoption of cryptocurrencies.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Lawrence Newman He is the co-founder of Coinmama, a serial entrepreneur and veteran in the Bitcoin field. After working hard to buy Bitcoin on his own, Lawrence set out to create a seamless, safe and engaging buying experience for everyone, and Coinmama was born. In addition to serving on the board of directors, Lawrence is also responsible for Coinmama’s marketing and strategic partnerships.