Why you should care about crypto consumer applications
Here are the practical use cases and application examples.
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Crypto consumer apps are becoming a big deal in our everyday tech world. Just like how the internet changed our lives, these apps could change how we use digital stuff. Right now, we get to use lots of cool free tech, but a few big companies control most of it. That can cause problems. This is where crypto apps come in - they use something called "decentralization" to spread out control.
Crypto apps aim to make things fairer online. They give users more privacy and "digital ownership" - meaning you actually own your stuff online. As of 2024, about 560 million people use cryptocurrency. That's about 6.8% of people worldwide. This shows more people are getting interested in crypto.
But crypto apps aren't perfect yet. They can be tricky to use, and there are still some big problems to fix. Things like "self-custodying keys" (keeping your own passwords safe) and connecting your "crypto wallet" to apps can be confusing for new users.
Even with these challenges, crypto apps could make the internet better for everyone. As they get easier to use, they might change how we do things online, handle money, and control our digital stuff. That's why it's worth paying attention to crypto consumer apps - they could help create a fairer digital world for all of us.
Secure, low-cost, and builder-friendly solutions come together.
Ethereum L2 solutions are improving, but they're still developing. One notable example is Base, a layer 2 blockchain launched by Coinbase. It aims to be secure, low-cost, and developer-friendly, aligning well with current needs. The compatibility of L2s like Base with Ethereum 2.0, which plans to use sharding for better scalability, will be crucial for long-term success.
Users don't care much about the technical details. They just want secure and cheap transactions. This combination can create strong network effects. Network effects are powerful. There are two types of modularity that affect them: one that strengthens network effects, and one that weakens them. Usually, only the type that strengthens makes sense, especially in open source.
Builders, including those working on Base and other L2s, should focus on creating secure, low-cost solutions that work well with existing systems. This approach is more likely to boost network effects and grow the ecosystem. By prioritizing security, affordability, and ease of use for developers, L2 solutions like Base are positioning themselves to play a significant role in Ethereum's future.
NFTs become brand assets for more creators.
Jack Conte's insights at SXSW 2024 about creator challenges in algorithm-driven social media have interesting parallels in the blockchain world. Just as creators struggle with centralized platforms, blockchain projects face issues with scalability and costs on main chains. Layer 2 solutions like Base are addressing these challenges, opening new possibilities for community building.
In the blockchain space, this translates to:
Using NFTs to invest in true users and build strong communities
Creating valuable, efficient solutions on L2s, not just chasing short-term gains
Clarifying project goals and values for long-term sustainability
NFTs on Layer 2 platforms can be powerful tools for community building, much like how creators build loyal followings. They can represent membership, provide access to exclusive content, or enable participation in governance. By leveraging NFTs on secure, low-cost Layer 2 solutions like Base, projects can achieve genuine network effects.
In this article, I also share an in-depth brand loyalty use case and key considerations.
Improving UX in Crypto Wallets
One of the biggest complaints from non-web3 users is that wallets are hard to use, and many people don’t understand the concept of private keys—and they shouldn’t have to.
Innovative wallet service providers like Privy, Magic.link, Coinbase Wallet, and Dynamic are driving change. These companies are introducing groundbreaking tools such as passkeys, which offer a more secure and user-friendly alternative to traditional passwords by using cryptographic generation. Other significant advancements include smart accounts that make wallets programmable, embedded wallets for frictionless onboarding, and multi-party computation (MPC) for improved security without compromising convenience.
Among the leading innovators, Privy and Dynamic showcase contrasting approaches to wallet technology. Privy focuses on embedded, self-custodial wallets that seamlessly integrate with existing authentication methods, aiming to lower entry barriers for crypto newcomers. In contrast, Dynamic offers a more traditional wallet experience with multi-chain capabilities and passwordless access, catering to users who engage with various blockchain ecosystems.
These innovations collectively aim to make Web3 technologies more accessible and user-friendly, potentially driving mainstream adoption of cryptocurrency and blockchain technology. By simplifying complex processes, enhancing security, and reducing friction in user interactions, these advancements are not just matching the user experience of Web2 applications – they're striving to surpass it, potentially setting new standards for digital interactions across all domains.
Thoughts
AI is changing how we make information. This affects society, culture, politics, and the economy. As AI creates more content, we're seeing more AI-generated material, including deep fakes.
With so much AI-made content, it's harder to know what's real and what's not. That's why it's becoming more important to connect directly with people. We need to focus on real users and build strong communities with fans and users. This helps create trust and shows what's genuine.
These ideas about connecting with people matter in new tech like crypto too. In my next few articles, I'll talk about my experiences with different crypto apps that people use. I'll start by looking at Base, which is one of these apps.
Hi, I'm Kevin Wang!
By day, I'm a product manager diving into the latest tech innovations. In my free time, I'm the creator behind tulsk.io, a platform dedicated to PM Intelligence. My passion? Breaking down the complexities of web3 and AI into bite-sized, understandable concepts.
My goal is simple: to make cutting-edge technologies accessible to everyone. Whether you're looking to expand your knowledge or apply these insights to your personal growth, I'm here to guide you through the exciting worlds of web3 and AI.
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