New solution makes crypto transactions as easy as PayPal

It’s 2024 and we’re in the middle of the fourth crypto bull run since the inception of Bitcoin back in 2009, and yet we still struggle with the same persistent problems. The user experience (UX) remains way too clunky and it’s keeping crypto from going mainstream. Indeed, though hopes have been high that the launch of Bitcoin ETFs would be a stepping stone to mass adoption, we haven’t seen this materialize yet.

According to Triple-A, just 6.9% of the global population uses crypto today. And, while adoption saw significant growth between 2018 and 2021, this really slowed down in the last couple of years. Indeed, while Triple-A estimates the compound annual growth rate (CAGR) to be 99%, 2022 to 2023 saw just 19.5% growth, slowing to 11.5% between 2023 and 2024.

With 560 million crypto users worldwide, at this rate, it will take decades to achieve mass adoption of crypto. In comparison, in 2021 global financial account ownership stood at 76%, according to the World Bank. So how can the crypto industry reach anything like this penetration? Well, to paraphrase Bill Clinton’s political advisor, “It’s the UX, stupid!”. And the good news is, the products required to make the crypto user experience as easy as PayPal or Venmo already exist.

Simple, cross-chain transactions

Despite this, the consensus in the web3 community appears to be that improving the crypto user experience is an arduous task with no clear solution. In reality, though, solving crypto’s UX problem requires just two key components: simpler transactions and cross-chain compatibility. And decentralized identity protocols offer the solution to both of these problems.

Indeed, simplifying transactions has long been at the heart of what web3 domain providers like SPACE ID, Unstoppable Domains or ENS Domains do. Their solution is brilliant in its simplicity: replace clunky 42-character crypto addresses with a single handle made up of a few letters, and voila – it’s now as easy to send crypto as it is to send fiat on Revolut using its Revtags or PayPal using an email address.

Simplifying transactions is an absolutely crucial part of the user experience because it makes sending and receiving crypto transactions more akin to transacting in the traditional financial world. And that’s what the crypto ecosystem should be striving for if it wants to keep growing its user base. However, on its own, this isn’t enough.

Major integrations

To make the crypto transaction experience as seamless as a traditional banking app, these web3 domains must be available across chains. Moreover, they must be integrated with the most basic crypto applications, like the decentralized MetaMask wallet, for example.

Right now, sending money from HSBC to CitiBank, for example, requires two account numbers - that’s it. No need to move money across various banking networks to get it to a recipient. However, in crypto, there are currently 42 active Layer 1 blockchains and 111 L2 blockchains, according to DappRadar and L2beat. It’s fair to say that the landscape is getting confusing even for a seasoned crypto user. So for new users, it’s a minefield.

That’s why the recent announcement that SPACE ID has integrated with MetaMask Snaps is so promising. SPACE ID already stands out in the digital identity arena as the only interoperable web3 domain provider. This means it is the only one that offers true cross-chain compatibility, instead of sticking to EVM-compatible chains like its competitors. Now, with the new SPACE ID web3 Domain Snap, a MetaMask wallet and a SPACE ID Handle are all a user needs to send and receive seamless and secure transactions.

A simple solution

Why is this such a big deal? Firstly, MetaMask is by far the most used self-custody web3 wallet globally, with around 30 million monthly active users. Indeed, downloading the MetaMask web extension is often a crypto user’s first foray into decentralized finance.

Secondly, MetaMask’s Snaps feature is like the web3 version of Google Play or Apple Store. Snaps are essentially modular extensions for MetaMask that allow developers to add custom features to the wallet’s functionality – like SPACE ID’s Handles. This means that anyone can now send assets from or to a MetaMask wallet on any chain using just this simple handle.

No more poring over clunky crypto addresses with sweaty palms before making a transaction to make sure there aren’t any mistakes. No more panic over address poisoning scams that have caused millions in crypto losses, and no more need to use bridges – which are confusing and extremely insecure. This, surely, is what fixing crypto’s UX problem is all about. It’s a smart solution that makes crypto transactions simpler and safer in one stroke.

The future of crypto

Of course, the user experience isn’t the only thing keeping potential new users away from crypto. The memory of the high-profile crashes of 2022 is still fresh for many. In fact, a recent survey by the Pew Research Center found that 63% of American adults are still not confident in the reliability and safety of cryptocurrency.

Crypto’s negative image and a lack of education are certainly obstacles in the way of mass adoption, but even the most curious investors won’t stick around if they experience sub-par UX. That’s why fixing it is so important, and that’s why SPACE ID’s collaboration with MetaMask is such a positive development, showcasing that simplifying crypto transactions really is possible. And not only possible, it’s easy.

As the crypto market continues to grind higher, it’s only a matter of time until we see an explosion of new users in the space. It is these innovative solutions that seek to unite a fragmented industry and remove the main pain points for the end users that will help crypto achieve mass adoption.

Crypto can and should be as easy as Revolut or PayPal and consumers will accept nothing less before they start using it. As end users, we shouldn’t even be aware we are transacting across chains, and we shouldn’t have to understand or risk our money on bridges. We should just be able to send crypto easily and securely using a five-letter handle at the click of a button. This is the key that will unlock the future of digital assets.