There's been a lot of discourse about Web3's mainstream potential for years, yet it seems we’ve barely scratched the surface when it comes to user adoption. In a previous blog post we raised the question:
“If everyone is looking for the benefits of decentralized ownership, why is the industry still struggling so hard to find the path to mass-adoption?”
In our eyes, there are two challenges — removing both functional and cultural barriers. We built XION to create an ecosystem that addresses both. This installment in the Learning Series will focus on the functional challenges, and how XION’s infrastructure is strategically positioned to resolve them.
For new users interacting with Web3 apps for the first time, it can take upwards of 15 complicated steps and multiple days to successfully complete a purchase. From figuring out which wallet extension to download all the way to having the necessary funds to submit a transaction, it’s no wonder the user drop-off rate is upwards of 95%. It doesn’t help that with the proliferation of different chains, it becomes even more confusing and overwhelming for a new user to situate themselves. This becomes a breeding grown for scammers, who take advantage of new entrants and contribute to the mainstream’s poor perception of the industry.
While user education can help make the process more approachable, clearly, it is not a solution in itself. Burnt believes that just like the internet, users shouldn’t be required to understand all the technical intricacies of how it works in order to benefit from its use. XION is purpose-built to abstract away the technical complexities of crypto in order to overcome the audience scalability limitations that have arisen due to the technology's builders and users being one and the same. It enables frictionless user experiences, while retaining the core tenants of Web3 — decentralization, transparency, cooperative benefits, verifiable ownership, and more. Below are a few of the major functional challenges it addresses with its technical solutions.
Functional Challenges & Technical Solutions
Complexities of Wallets
Traditional crypto wallets are known to create a 95%+ drop-off in user adoption. They require users to download plugins, have complex setups, confusing pop-ups, require users to understand and safely store seed phrases, and their UX in general deters non-technical users.
To address this, XION is completely abstracting away traditional crypto wallets across the entire chain, allowing users to experience a familiar Web2 experience while still retaining full custody over their assets. No plugins need to be downloaded, a user is able to simply create a non-custodial wallet with their email, it is secured through industry-leading MPC, and results in a user-friendly wallet interface that integrates seamlessly with the users' routine digital interactions.
XION is built with native account abstraction at the chain level, allowing it to seamlessly cater to all audiences. Non-technical retail audiences can enjoy a familiar Web2 experience as described above, and crypto native users can use any wallet of their choice to interact directly with XION. Much more will be revealed about XION's powerful native account abstraction and the groundbreaking use-cases it unlocks.
In many ways, mobile support is the way to true retail adoption, especially when recognizing that a significant portion of all digital interactions occur on mobile devices. However, mobile crypto wallets are currently a security risk, don’t translate well between desktop and mobile devices, require users to travel with their seed phrase, and the current UI/UX of in-app browsers is incredibly under-performant.
XION’s infrastructure ensures full mobile support through the abstraction of wallets mentioned above. In addition, it allows the separation of login from assets, creating a safe avenue for users to interact with new apps without putting their assets at risk. In essence, it allows users to access XION’s ecosystem anytime, anywhere, safely.
The current process of purchasing items on-chain with fiat is riddled with challenges often involving 15+ steps and sometimes more than a week to complete. A user must sign up to a centralized exchange, perform KYC, wait for their money to transfer, deal with wallets, bridge the funds, swap to the right currency, and more before being able to purchase.
XION simplifies this by enabling direct purchases of items on-chain with credit/debit cards, eliminating the need for intermediaries, and vastly reducing the number of steps and time involved. With 95%+ authorization rates, instantly reaching ~6 billion credit/debit card holders, and enabling transactions in less than 60 seconds from start to finish, XION offers a purchasing experience that truly resembles that of a familiar Web2 e-commerce website.
Another major barrier to adoption for new users is the requirement of gas fees, as it forces them to own the chain’s underlying currency in order to transact. In addition to introducing the foreign concept of gas fees, users are also faced with many of the same challenges mentioned above as they relate to acquiring a certain currency. XION completely eliminates this barrier to entry through gas-less transactions and allows new users to start interacting with apps on the chain right away.
A unique aspect of XION is that it is has fiat denomination throughout the entire chain. Within the industry there are thousands of tokens with highly volatile value, and to new users it can be incredibly confusing to understand the pricing of products. XION is the first chain to fully incorporate familiar fiat denominations, enabling users to understand and relate to the value of transactions better, reduce their exposure to volatile crypto valuations, and provide a seamless user experience.
All these functional hurdles currently keep the vast majority of everyday, non-technical users from engaging with Web3. XION's holistic approach to these issues not only aims to overcome these barriers but also positions it as the first-of-its-kind platform designed to bring crypto to the masses. In addition to the above, there are many more exciting developments that will be revealed in the near future. Make sure to stay tuned for the next installment focusing on the cultural barriers Burnt seeks to break down!