As mentioned in Satoshi Nakamoto’s Bitcoin (BTC) working document, the core of cryptocurrency is a peer-to-peer electronic money system that eliminates the need for intermediaries such as banks. This lively and ironic independence from the controls of traditional banking systems is widespread in the cryptocurrency world.
However, when the goal is mass adoption, some acquisitions become necessary to push everyone towards a truly decentralized economy. We can not expect our grandparents, who find it difficult to send an email, to figure out how to handle private keys, primitives, digital wallets and send a birthday gift in bitcoin without help. In fact, this shift toward decentralized financing already goes far beyond sending Christmas money and includes growing crops, mining liquidity and auctions to sell non-perishable tokens. As such, reliable brokers have never been more important in realizing the core strings of DeFi and cryptocurrency.
Related topics: Liquidity recovery flourishes – will it continue or collapse?
Robots do not need trust, but humans do.
Trust is essential to everyday life in any civilization. We trust the doctors’ opinion. We are sure that the taxi driver will take us where we need to go. We are sure that the food we are served in restaurants is safe to eat. We are sure that cars will stop when the pedestrian signal is switched on.
In the unreliable world of cryptocurrency, we are still making decisions about who and what to trust. Most of us are not developers or engineers who can analyze the code of every DeFi protocol and every code before we get involved. Instead, we gather information and evaluate what measures we should take based on what we understand. The main question in this decision-making process is: Do we trust the organization and the people behind the protocol? Do we trust that they are acting in good faith and that the protocol does what it says?
Research has shown that our trust develops along with the development of new technology. Despite the novelty of algorithms that use machine learning and artificial intelligence, people are increasingly relying on algorithms instead of their peers. A study published in Science Daily found that when people were shown a group photo and asked who would be better able to find the right number of people in the photo, AI said more than they mentioned. At the same time, another study found that a person’s confidence in technology largely depends on how familiar they are with technology: a degree in technology or engineering and knowledge of online algorithms leads to a higher level of confidence in artificial intelligence.
Related topics: Mass adoption of blockchain technology is possible, education plays a key role
The results from both studies certainly apply to the cryptocurrency world. Increased confidence in technology has led to widespread use of cryptocurrencies. However, it is important to understand that this adoption occurs at different rates in different demographic groups. Those who are most familiar with new technology – engineers and developers – accept them as the oldest; Those who have the least access to resources lag behind. Therefore, those of us who are immersed in the world of cryptocurrency should give priority to supporting those who are less vulnerable. We do not want to end with a “monopoly” where those with the most technical knowledge are the most privileged and those with the least participation. This virtual dystopia will run counter to Bitcoin’s original promise of democratization.
User problem with encryption
We must admit that cryptocurrency presents a unique challenge when it comes to usability. Even among people with Internet access, which is currently estimated at 4.66 billion kroner, is often limited to social media, search and e-mail. It is convenient for these web users to use email and passwords. Adding private key control – a series of mixed numbers and symbols that are difficult for the human eye to interpret – requires overcoming this ignorance that Internet users are used to.
Related topics: Decentralized economics may be the future, but education still does not exist
The core value of your keys, your coins is a revolution in our financial systems, which allows users to control their assets instead of relying on banks and other centralized service providers. However, this expansion also comes with a burden that many beginners may not be ready for right away. We have all heard horror stories about how users lost their private keys and as a result lost access to a multi-million dollar cryptocurrency.