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The primary challenge facing crypto today is its complexity. Most web3 applications require technical skills that many users do not possess, and until this changes, few will be inclined to support the industry.
Summary
- The major barrier to crypto adoption is its complexity — wallets, seed phrases, networks, and gas mechanics complicate web3 applications for mainstream users.
- Education and decentralization arguments are ineffective; blockchain must become seamless, transforming complex steps into straightforward, user-friendly experiences.
- The next wave of users will only come when crypto apps function like conventional apps — with single-click actions, intuitive wallets, and hidden smart contracts, where blockchain works in the background.
Entering the crypto space is a daunting task; users must establish a wallet, securely store their seed phrase, and navigate the process of purchasing crypto. Compounding this are diverse networks that contribute to an overwhelming experience. It’s akin to dining out where one must visit multiple restaurants for each ingredient — steak here, fries there, and sauce from a different place, all requiring separate currencies for each transaction.
This approach is impractical, and individuals won’t flock to blockchain simply because they see decentralization as appealing. However, if they encounter an outstanding app built on blockchain that is easy to use, their interest will likely follow.
Eliminating Blockchain
Regrettably, few in the crypto sector are focused on creating such applications. Instead, they engage in misguided debates over ideological purity and scaling methods. They spend time discussing user education and the merits of decentralization while deluding themselves that these factors will drive crypto’s success.
The reality is that outside a small group of blockchain enthusiasts, decentralization doesn’t resonate with most people. No one is eager to invest hours learning about it. The promise of “greater financial inclusion” isn’t enough to motivate your grandmother to explore how to create a crypto wallet.
For the crypto industry to attract the next billion users, the emphasis should be on abstraction rather than education or decentralization. The aim should be to render blockchain “invisible,” like the TCP/IP protocol that powers the internet, which remains unseen by the vast majority of users. By stripping away the technical jargon and complexities associated with blockchain, we can make web3 applications as user-friendly as traditional smartphone apps. Achieve this, and adoption will follow.
The internet learned this when it transitioned from IP addresses to user-friendly domain names, and later to clickable links. This simple transformation dramatically enhanced accessibility, a change that blockchain desperately needs today.
Many barriers currently alienate users from blockchain, such as seed phrases, private keys (what’s the difference?), lengthy wallet addresses, gas fees, and liquidity issues. Abstraction seeks to make such complexities vanish, enabling users to engage with crypto and web3 as they would their email or social media accounts.
Implementing Abstraction
While the exact mechanics of abstraction remain uncertain, the necessary steps are clear. First, creating a wallet should be as straightforward as entering an email and password, with a reliable recovery option if the password is forgotten. Relying on seed phrases is impractical.
Furthermore, consolidating wallets for different networks is essential. The goal is a single wallet that centralizes funds, allowing transactions across various wallets without the technicalities of cross-chain bridges, signing approvals, or worrying about gas fees—all of which should be simplified to a single click.
Smart contracts, much like TCP/IP, should be abstracted away; users only need them to function, not to understand them. Liquidity, while necessary, shouldn’t involve user concern, enabling seamless token swaps. Gas fees also need simplifying, allowing users to pay in any token, ensuring the process isn’t complicated.
Making Crypto Functional
The popularity of social media platforms like Facebook and Instagram stems from their intuitive functionality. Users can start using the app effortlessly, and that’s what keeps them engaged.
Abstraction should be the ultimate goal for blockchain. We must eliminate all obstacles and showcase the benefits of web3. It’s time for this shift to occur. The internet began developing in the 1980s, and by 2001, over 55% of Americans were online—mainstream adoption occurred rapidly.
In contrast, crypto is now in its second decade and lacks the popularity that the web achieved at the same stage. Although advancements like various coins, blockchains, real-world assets, and NFTs have emerged, users still grapple with multiple wallets, seed phrases, and cross-chain bridge confusions. Crypto remains daunting, whereas the internet was already thriving by this point.
Blockchain should become imperceptible, allowing users to focus on engaging applications that add value to their lives. The industry needs to cease its preoccupation with ideological debates about layer-2 networks and prioritize creating functional applications that genuinely work for users.
