Satoshi Nakamoto‘s dream was to launch a universal currency free from the constraints of centralised governments. Nowadays, most people know about cryptocurrencies, but few know exactly how they work. Many have approached this world attracted by the great volatility of these assets that can generate profits, but also losses, in a short time.
The reality, however, is that cryptocurrencies were not created to allow the purchase of a Lamborghini, but with the aim of replacing or at least complementing traditional finance. This will be achieved once the mass adoption of this technology is reached.
There are several very promising projects that are favouring and will encourage the adoption of cryptocurrencies. Let’s try to understand them and their status.
One of the biggest problems with bitcoin is its scalability. Currently, the network is able to process about 7 transactions per second (TPS). When looking at the TPS of payment providers, it is clear that bitcoin cannot compete:
- Visa – 1700 TPS
- PayPal – 193
This is why developers are working on Lightning Network. LN is a payment protocol designed to facilitate transactions. These transactions are recorded offchain so as to drastically reduce the cost of fees while ensuring an almost instantaneous transfer compared to traditional onchain transactions to make the Bitcoin network scalable.
In recent months, however, there has been a decline in capacity from 1100 BTC in May to 844 BTC today. LNBIG, which manages almost 60% of the LN network, is unable to make a profit because the number of daily transactions is too low.
This technology is not yet mature, but many believe that it is fundamental for the future of Bitcoin. Samson Mow, chief strategy officer of Blockstream, thinks that LN will play a key role in the adoption of bitcoin as a means of payment on a global scale.
Bakkt will become one of the main platforms for trading bitcoin futures. Bakkt’s BTC futures will arrive on September 23rd and, in order to facilitate a smooth launch, the company has been offering bitcoin custody services to customers since September 6th.
The bitcoins stored with the Bakkt Warehouse custody service will be protected by an insurance policy of 125 million dollars.
The long-term prospects for bitcoin are extremely promising thanks to the launch of Bakkt, especially as it will facilitate the entry of institutional investors into this market.
Bakkt has also entered into a very important partnership with Starbucks. Starbucks has received a significant portion of Bakkt’s shares and has committed to allow bitcoin payments in its shops.
ATMs, exchanges and Coinbase Earn
In order to truly achieve the adoption of cryptocurrencies, it is essential to facilitate their purchase and sale as much as possible. Traders and fans of this technology are already in the market: they know how to move, they participate actively and inform themselves by reading the news.
The majority of the population, however, does not know about anything about cryptocurrencies and it is important to involve them in this revolution.
Exchanges have become much easier to use compared to the past, facilitating deposit and withdrawal of funds and making their interfaces very intuitive. The number of bitcoin ATMs around the world is also increasing day by day.
Coinbase, however, has done even more by launching Coinbase Earn. It is an educational program launched by the American giant in collaboration with its cryptocurrency partners, which allows obtaining free tokens simply by following educational videos and responding to the various quizzes proposed.
Currently, there are six cryptocurrencies that have joined the program: 0X (ZRX), Basic Attention Token (BAT), Zcash (ZEC), Stellar Lumens (XLM), EOS and the stablecoin DAI.
Smartphone and Crypto dApps
Smartphones are undoubtedly the best way to encourage the adoption of cryptocurrencies, as they can be used to make quick payments thanks to wallets that can be downloaded from the Apple Store or Google Play Store. These devices have become the way in which people interact with the world and now everyone has one in their pocket.
All smartphone manufacturers are one way or another looking at the crypto world.
The Samsung blockchain smartphone
Samsung has already embraced these new technologies by integrating a native Ethereum wallet into its new flagship smartphone, the Galaxy S10. Samsung recently confirmed that it wants to add some new cryptocurrencies and stablecoins to the wallet integrated on the smartphone. The assets that will be added to the hardware-integrated crypto wallet on the S10 smartphone will be TrueUSD (TUSD), Maker (MKR) and USD Coin (USDC). It also seems that the integration of the BAT token, which recently updated its crypto browser, is imminent.
The S10 in addition to the wallet supports 4 ERC20 dApps:
In addition, a few days ago, Samsung Electronics and Kakao announced a blockchain-compatible smartphone called KlaytnPhone, based on the Galaxy Note 10, and currently only available in South Korea. Klaytn is the blockchain platform of a subsidiary of Kakao, Ground X.
Apple supports crypto
Apple is not going to stand by and watch. Despite being already behind Samsung, there is still no wallet in sight for the iPhone. During the Worldwide Developer Conference (WWDC), however, they unveiled a new update for developers called CryptoKit, which is still in beta version, and has the aim of allowing “to perform common cryptographic operations” such as the “use public-key cryptography to create and evaluate digital signatures, and to perform key exchange“.
A new set of icons has also been released along with the kit, including four bitcoin logos.
LG, HTC and others
Korean LG Corporation could soon launch blockchain-friendly smartphones. This is reported by the local information site it.Chosun, according to which that of LG is a response to the blockchain smartphones of the rival Samsung.
HTC has long since launched its Exodus device which has the ability to operate as a full node of the Bitcoin (BTC) network.
Several startups have also launched smartphones entirely dedicated to cryptocurrencies such as PundiX, which recently announced BOB, its blockchain-based phone. Startup Sirin Labs announced Finney, which features an integrated hardware wallet. Huobi also announced a blockchain smartphone, created by the startup Whole Network and named Acute Angle.