This article explores some of the fundamental issues that we believe currently hinder the mass adoption of cryptocurrencies, and looks at Blockport's role in overcoming these issues.
The Blockport Security Token Offering (STO) is live. Find out more about investing in Blockport Securities (BPS).
The main barriers to entry with current cryptocurrency platforms can be delineated as:
- A lack of usability
- a lack of liquidity
- a lack of security
- a lack of transparency
- and a lack of education.
Blockport aims to address these issues by means of:
- Our user-friendly desktop and mobile app
- Our smart order routing system
- The Blockport Academy
- Blockport’s Advanced trading view and internal matching engine
- Social trading features
- Our hybrid-decentralized architecture
Barriers to entry into the world of cryptocurrencies
At Blockport, we believe there are five fundamental issues that hinder retail consumers and the general public from participating and investing in the new digital economy of cryptocurrencies.
Firstly, there are issues which we believe represent the technical limitations of current centralized and decentralized exchanges.
Lack of Usability: The user-interface (UI) of current exchanges indicate that they are primarily built for professional traders and tech-savvy consumers. Therefore, current solutions are generally still far too complex for the average user to understand and for mass adoption to take place.
Lack of Liquidity: Limited liquidity makes it harder to trade, and results in higher investment costs due to a lack of people buying and selling assets on the majority of existing exchanges. In the current market, liquidity is fragmented over multiple segmented marketplaces. This results in multiple illiquid smaller markets and makes it harder for consumers to easily purchase digital currencies at desired prices.
Lack of Security: The highly liquid exchanges which have the most users and trading volume are centralized exchanges that keep customers’ cryptocurrency in the exchanges’ wallets. These exchange models have unfortunately proven to be extremely susceptible to internal fraud and hacking. While decentralized exchange solutions may address the security issues mentioned above, decentralized exchanges have been largely unable to deliver the user experience that is needed for beginning users, exposing them to new risks like loss of their private keys.
The remaining two issues are non-technical barriers that reflect limitations on trust and use of existing exchanges and broker services.
Lack of Transparency: Aside from hidden liquidity costs, exchanges and especially brokers are not always transparent about the actual commissions and fees that are associated with a trade. This results in an overall increase of mistrust of exchanges by consumers.
Lack of Education: Current solutions lack proper education and knowledge sharing functionalities that are necessary to help beginner investors get familiar with the new digital economy and stimulate the overall adoption of digital currencies as a valuable asset.
Collectively, these five issues are imposing high barriers for the mainstream consumer market to participate in the new digital economy.
How do we solve these issues?
The problems discussed above all affect the overall degree of trust, which we believe currently hinders the mainstream adoption of cryptocurrencies in our society. With new technologies like distributed ledgers and smart contracting, the overall public’s level of trust and understanding remains relatively low.
Therefore, it is our mission to create a platform that functions as an intuitive portal between the current financial system and the new digital, cryptocurrency-based economy. We believe that everyday usage should not be built around the complexities of the technology in use, but should rather only offer benefits to end-users. We intend to achieve this by developing an end-to-end trading platform that enables businesses, traders, and beginner investors to be part of this global value network.
Although the potential of this new digital paradigm is extremely big, there is still much room for improvement.
There are several key aspects that we believe set Blockport apart from other leading cryptocurrency exchanges in the industry: intuitive and accessible UI, social trading, and its hybrid-decentralized exchange architecture.
1. User-friendly desktop and mobile app (addressing a lack of usability)
The user interface is the main point of engagement that every user interacts with. As one of the core product features, we have built a user-friendly cryptocurrency trading platform with a fiat gateway. This constitutes the essential functionality that bridges the traditional world of finance (fiat) with the new digital economy (cryptocurrency).
In order to achieve the best possible user-experience for our users, we have incorporated ‘user testing’ as a main driver for our product and development process. This allows us to constantly improve our product based on user feedback and collected behavioural data. Additionally, clear communication is key.
This means taking users through every step, and explaining to them the what, how, and why of cryptocurrency trading. And lastly, we have a strong focus on minimalism, which means that we only show users what they need to know at every step in the flow, not making things unnecessarily complex and thereby effectively removing barriers to entry.
Status: Live on https://app.blockport.io
2. Smart order routing (addressing a lack of usability, liquidity, and transparency)
The second product feature that we believe differentiates us from competitors is that Blockport is connected to other exchanges in the market. With our “smart-order-routing” system we efficiently distribute orders from users across different markets, whilst searching for the best prices. This allows us to efficiently solve the issue that most cryptocurrency exchanges have in their infancy: a lack of liquidity.
When a user places an order, this order can be chopped up into smaller orders, which are routed through our network and are then settled for optimal prices across the external exchanges we are connected with. This way, we aim to offer our users an intuitive solution to buy or sell their assets for the best prices in the market.
Status: Live on https://app.blockport.io
3. The Blockport Academy (addressing a lack of education)
Our ecosystem is designed to incentivize knowledge-sharing between users, with an emphasis on experienced traders providing insight to beginner traders. Additionally, Blockport provides step-by-step guides to educate beginners on everything ranging from trading to assessing market developments and the basics of blockchain technology.
Status: Live on https://academy.blockport.io/
4. Advanced trading view and internal matching engine (addressing a lack of liquidity)
As an important component of becoming an exchange for all possible audiences, we are developing our internal matching engine. This allows us to strategically list any asset, build new markets, and offer an advanced trading view, whilst making us less dependent on external factors such as uptime, trading fees, and listing policies from external exchanges.
Combined with our smart-order-routing system that leverages liquidity of external exchanges, the internal matching engine is the next stepping stone required to open up our platform’s API for third-parties, and become a tightly-integrated, hybrid-decentralized exchange.
5. Social trading (addressing lack of usability and education)
Blockport’s unique social trading features will combine proven concepts of trading and social media to incentivize learning and engagement, directly on the platform. These features facilitate knowledge-sharing and unique content creation throughout the platform, thereby connecting beginners with advanced traders.
The copy-trading features will enable users to learn through following and imitation. Beginners can learn from other, more experienced traders. Additionally, experienced traders are incentivized to share their knowledge with beginners because they earn Blockport’s native token, BPT, as a reward.
Status: in development.
6. Hybrid-decentralized architecture (addressing lack of usability and security)
Blockport is developing a hybrid-decentralized architecture which combines the best of both centralized and decentralized models.
The first feature of this architecture would give users the choice to store their assets in Blockport’s wallets to enable high performance trading or store them directly on the blockchain, thereby allowing them to own and manage their own private keys.
This way, users can easily choose between storing their assets for trading on the platform, or safely store it on the blockchain for long term investments. This would include a unique on- and off-chain protocol that allows users to manage their own private keys.
The second feature addresses the issue of safe and easy-to-use private key management. If users want to store their funds in a safe and decentralized way, they don’t want to deal with the hassle of storing and managing multiple private keys for every chain. Neither do they want to be confronted with the disastrous consequences of losing their private keys. In order to solve this, we are internally developing decentralized asset management features (dWallet).
The final milestone is developing and integrating decentralized trading infrastructure into the platform. By doing so, we expect to initiate the massive potential of global integration between fiat and crypto-enabled technology in a seamless and more secure way. Usability, stability, and performance remain top priority at every stage in the path towards this milestone.
Status: in research & refinement.
As we speak, our team of over 20+ developers, data scientists, product designers and cryptocurrency experts are building or refining these features on our platform.
As we continue to grow in the coming months and years, we look forward to Blockport’s role in bridging the mainstream with the new - opening up the world of digital currencies to more and more people around the world through simplicity-driven innovation.
Blockport is running its first equity-based fundraising round through a Security Token Offering (STO), launched on the 16th of April 2019.
Blockport is an Amsterdam-based, fiat-to-cryptocurrency trading platform that strongly focuses on usability and social trading features to provide a secure, efficient and enjoyable experience to its users.
The Blockport platform is connected to external exchanges and aggregates liquidity through its smart-order-routing system to automatically offer the best prices to its users.
In the coming year, Blockport is building on a hybrid-decentralized architecture that allows users to trade with high performance, whilst safely storing their funds on a blockchain wallet, meaning they own their private keys.