Making cryptocurrency simpler is essential for mainstream adoption


10th July 2024 – (New York) The journey to bring the first billion users to cryptocurrency hinges on developing more user-friendly applications, according to Coinbase’s senior director of engineering, Chintan Turakhia. In a discussion at EthCC, Turakhia emphasised the necessity of removing current obstacles in the user onboarding process to facilitate mass adoption of blockchain technology.

Presently, the complexity of setting up cryptocurrency wallets, including managing intricate seed phrases and handling transaction fees, poses significant barriers for new users. Additionally, the requirement to purchase blockchain-native tokens for transactions complicates the process further. These hurdles are central to why cryptocurrency has not yet achieved widespread acceptance among the general public.

Coinbase, ranking as the world’s second-largest crypto exchange by trading volume, is spearheading efforts to simplify these processes. Its latest innovation, the Coinbase Smart Wallet, introduces more intuitive user interfaces, such as account names and passcodes instead of traditional seed phrases. This approach not only simplifies transactions but also makes the digital wallet competitive with traditional banking services.

The smart wallet, which is operational on the Ethereum mainnet and compatible blockchains, also alleviates the burden of gas fees by having them sponsored by the Coinbase exchange. This development could set a new standard for crypto payments, making them as straightforward as buying a cup of coffee.

Beyond technical improvements, Turakhia argues that the real driver of mass crypto adoption will be consumer applications that integrate blockchain technology into everyday enjoyable activities. He cites the example of Hamster Kombat, a Telegram-based mini-game which achieved a user base of 239 million in just 81 days. The game’s significant growth demonstrates the potential for blockchain applications that are engaging and accessible rather than overtly technical or niche