Accessibility is a major barrier to cryptocurrency adoption — here is the solution.

Accessibility is a headache for cryptocurrency adoption that has been discussed for years, but is still more relevant than ever. The issue was most recently recognized by the US government when Treasury Secretary Janet Yellen discussed it in her speech on digital asset policy and regulation. There are barriers that limit access to cryptocurrencies, such as financial education and technical resources, and it is our duty as developers and leaders in this innovative industry to address them.

research is Display Only 33% of adults worldwide have financial savvy. Many projects in the Decentralized Finance (DeFi) space are focused on providing individuals who do not have access to traditional financial institutions and income, savings and trading tools. This is a key consideration.

Traditional financial institutions certainly have additional barriers that cryptocurrency projects bypass, such as documentation requirements, high fees, and a lack of local financial institutions in emerging markets. In other words, even DeFi requires knowledge and understanding of money to comfortably enter the space. Comprehensive education on the components of finance, from savings tips to market fluctuations, is critical to encouraging those marginalized by traditional finance to enter the world of DeFi.

Relevant: Decentralized finance may be the future, but education is still lacking

Cryptocurrency education and technostress

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Another educational component is cryptocurrency and blockchain education. New technologies of all kinds can be overwhelming and confusing for potential new users. term “technostress” was created to diagnose this problem.

Highly technical language and frequent use of jargon are two issues we’ve seen in the space that are holding back curious cryptocurrencies jumping into the world of DeFi. Whether it’s a blog post or an explanatory video, providing a resource that disassembles the essentials of blockchain technology will help bridge the large knowledge gap between developers and individuals in general. While this is an important start, the unfortunate fact is that education also requires time, an important and very limited resource.

The time and energy it takes to learn everything in blockchain and cryptocurrency technology can be a major barrier to developing the deep understanding needed to enter this space. Providing easy and simple educational tools is beneficial, but for a limited population. As a result, financial knowledge and crypto education are still important, but there are other steps developers and leaders must take to enable user adoption. Project leaders must also consider knowledge gaps when designing platforms and building messaging. Using simple, concise language that all audiences can relate to is the key to welcoming new users.

Relevant: Women’s interest in cryptocurrencies is growing, but the education gap persists.

How the Wealth Gap Acts as a Barrier

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As mentioned, the wealth gap presents many challenges for low-income individuals to enter the sector. Lack of access and time for training, as well as limited liquidity, act as barriers to entry.

Investing requires that individuals be able to cover their living expenses with additional funds to allocate elsewhere. People who live to earn their salaries, or who are not comfortable risking their own resources in investing, are much less likely to put their money in an investment account.

Relevant: Crypto Education Could Give Latin America Financial Empowerment

This is especially true as digital assets are newer and less regulated than traditional investment methods. Under-collateralized lending is a major driver for mainstream crypto adoption by allowing people with less liquidity to invest in the space. Projects like Teller Finance, which allow individuals to borrow crypto assets without posting collateral, are moving the space forward. This space will continue to grow and is needed to increase accessibility.

How leaders and developers can navigate these barriers

As developers focus on simplicity and ease for users, the platform should reflect these considerations. Onboarding is the first step for curious potential new users, so ensuring an intuitive login is your chance to make a lasting first impression. If there are a lot of complicated steps involved in setting up an account, people are obviously not going to want to go ahead. Knowing customer identification easier than cumbersome protocols is one way your project can improve the onboarding experience.

Another step the project needs to take is to build a strong partner network. Depending on the project, this could be involved in initiatives like Celo’s DeFi for People, which aim to increase compatible blockchains, integration with decentralized applications, or real-world use cases. There are so many projects with limited interoperability in this space that users have to juggle different accounts and applications. Making the platform as broad and interoperable as possible means giving users numerous ways to use the platform through compatible programs, and encouraging users to utilize your products.

For the continued growth of the blockchain industry, a steady flow of new users is required within the space. To do so, as an industry, you need to develop your project with new users in mind. Providing educational content is the first step in building a foundation to transform the economy.

This doesn’t work for all users, and it’s important to find additional ways to encourage new users to join your space. Offering unsecured loans helps to bridge the wealth gap we have seen throughout the development and growth of adoption of cryptocurrencies. It’s equally important to keep your audience in mind at every step, from design to messaging to the products you deliver. The ultimate goal is for blockchain technology to be embedded in applications to the point where users do not even need to know that they are on-chain. If our applications become as intuitive and easy to understand as traditional financial tools that have been downloaded by millions of users, we will see unprecedented user growth.

This article does not contain investment advice or recommendations. All investments and trading involve risks and readers should do their own research when making decisions.

The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent those of Cointelegraph.

fabric cheng Co-Founder, CEO and CTO of Quadrata. He previously served as Head of Blockchain Technology at Spring Labs. Fabrice is an experienced technologist, has been building the Ethereum ecosystem since 2016, has a special interest in extracting value from Mempool, and is also an Ethereum 2.0 open source contributor to Prysmatic Labs.

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