Although accessibility is an issue that is critical for cryptocurrency adoption, it has been discussed for many years. Yet, it remains relevant. The United States government recently acknowledged this issue as Treasury Secretary Janet Yellen discussed it during her remarks about digital assets regulation and policy. There are many barriers that prevent cryptocurrencies from being accessible, including financial education and technological resource. As developers and leaders in this innovative industry, it is our responsibility to remove these obstacles.
Research has shown that only 33% are financially literate. This is an important consideration, as many Decentralized Finance (DeFi) projects focus on providing people without access to traditional financial institutions with tools for saving, earning, and transacting.
There are many additional hurdles that traditional financial institutions have to overcome, including high fees, documentation requirements, and the lack of local financial institutions in emerging countries. To be able to enter DeFi, one must have a good understanding and knowledge of money. To encourage people who feel excluded by traditional finance to join the DeFi space, comprehensive education is required on the building blocks and market fluctuations.
Related: Education is still lacking, although decentralized finance might be the future.
Education in cryptocurrency and technostress
Education in cryptocurrency and blockchain is another important component. Potential new users can find it overwhelming and confusing to use any type of technology. This is why the term “technostress”, which refers to this condition, was invented.
Two issues that I have seen in the space are the use of jargon and highly technical language. It is important to provide resources that explain the basics of blockchain technology. This is a good start but education is a very scarce resource.
It can be difficult to gain a deeper understanding of cryptocurrency and blockchain technology due to the time and effort required to do so. Although it is useful, the tools are not accessible to all people. Financial literacy and crypto education are still important. However, there are many other steps that leaders and developers must take to encourage user adoption. When designing their platform or building out messaging, project leaders must consider these knowledge gaps. To welcome new users, it is important to use simple and concise language that resonates with all audiences.
Related: The education gap continues to persist despite women’s growing interest in crypto
The wealth gap is a barrier
The wealth gap is a major obstacle for low-income people to get into the market. Limited liquidity, in addition to the lack of education and access to it, is another major barrier to entry.
Individuals must be able pay their daily expenses and have enough money to invest. People who live paycheck to paycheck or those who don’t feel comfortable putting their savings at risk are less likely to invest in investment accounts.
Related: Latin Americans can be financially empowered by crypto education
Digital assets are more regulated and newer than traditional investment avenues. The undercollatoralized loan will allow those with lower liquidity to invest in crypto, which is a key driver for mainstream adoption. Teller Finance and other projects that enable individuals to borrow crypto assets with no collateral are helping the space grow. This space is growing and will be more accessible.
These are the barriers leaders and developers need to overcome
Developers should focus on user-friendliness and simplicity. Their platform must reflect these considerations. If you want to make a lasting impression on any potential user, then making sure that the sign-on process is simple is your chance to do so. People won’t want to go forward if they have to follow complicated procedures to set up their account. Projects can be made easier to identify your customer than tedious protocols.
A strong network of partners is another step that projects should take. This could include integration with decentralized apps, compatible blockchains or joining initiatives such as Celo’s DeFi for the People, which aim to improve real-world use cases. Many projects exist in this space. This means users must manage multiple accounts and apps. Your platform should be as interoperable and expansive as possible. This will allow users to access your platform via compatible programs. This encourages them to make use of your offerings.
To ensure the continued growth of blockchain, there must be a steady flow in users. We as an industry need to develop projects that are geared towards new users. The first step in building a foundation for revolutionizing the economy is to offer educational content.
This does not work for everyone, so it is important to find other ways to encourage new users to join the space. Uncollateralized loans can help to close the wealth gap we’ve seen as crypto progresses and becomes more popular. It is equally important to keep your audience in mind at all stages of the process, from design and messaging to the products you offer, as well as the offering. It is our ultimate goal to embed blockchain technology within applications so that users don’t need to know they are on-chain. We will see a surge in users if our applications are as easy-to-use and understandable than the financial tools that millions of people have used.
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Quadrata’s co-founder, CEO, and chief technology officer is Fabrice Cheng. He was the former head of blockchain technology for Spring Labs. Fabrice, a seasoned technologist, has been working in the Ethereum ecosystem for over a year. He is particularly interested in extracting value from the mempool and is also an Ethereum 2.0 open source contributor at Prysmatic Labors.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.