Adoption of new technologies takes time. Projects built on emerging technologies must undergo trial and error until they fit the pieces together for usage by the masses. Along the way, some projects may fail. Some may come up with improvements. Eventually, adoption happens.
What is Required for Adoption?
Blockchain technology has come a long way since Bitcoin was first released ten years ago. As the grandfather of blockchain, Bitcoin reintroduced the concept of decentralization, and it paved the way for a decentralized world. However, adoption requires other checkboxes to be ticked. Xank’s co-founder Ryan Kim believes that cryptocurrencies with these four features will set the stage for adoption.
1. Stability
Price volatility discourages merchants from accepting cryptocurrencies as a means of payment. If I sell a product for a cryptocurrency that is worth 20 US dollars today but could be worth 10 dollars tomorrow, how can I sleep knowing that I haven’t lost money? Price stability must be achieved in one way or another for us to see mass adoption.
2. Scalability
Can a network scale to handle transactions? Imagine paying for a cup of tea with crypto. You make the payment, but you’re waiting for minutes for the transaction to go through. Meanwhile, people standing behind in line are exhibiting signs of frustration.
If a network is not scalable and cannot make transactions go through quickly, people will stick with fiat currencies, not cryptocurrencies. Therefore, cryptocurrencies must prove that they are scalable.
3. Privacy
A cryptocurrency must give users a certain level of anonymity. In a centralized system, you the sender, the receiver, and a trusted third party are the only owns to know about a transaction. If a cryptocurrency network does not ensure that information is private, people will be reluctant to be a part of the network.
4. Decentralization
Decentralization is the absence of a central authority in handling transactions between users and in achieving network consensus. Will third parties, such as governments and stakeholders, intervene in the operation of a network? If the answer is yes, then what distinguishes cryptocurrencies from fiat currencies? Why not use US dollars or Korean Won or Russian rubles. Therefore, decentralization is necessary.
Where does Xank stand? Does it satisfy all the conditions for adoption? Why don’t you have a look at this infographic and see for yourself.
