Blockchain based fintech startup Crypterium challenges classic banks by introducing its new feature that allows anybody to transfer crypto using just the recipient's phone number, rather than complicated wallet addresses. These transfers happen simultaneously, and the company claims it can process up to a million transactions per second, solving blockchain's scalability issue.
MOSCOW, Aug. 14, 2018 /CNW/ -
Almost all blockchain applications are not user-friendly. Tech-savvy people have created them for other tech-savvy people, and those solutions are still confusing for both businesses and consumers who are not as computer literate.
Marc O'Brien, CEO of Crypterium, previously CEO of Visa UK, has set a goal of bringing crypto into the mainstream and making it more user friendly. "We're on our way to the 21st century's 'Netscape moment', the day when a California startup's eye-popping market debut illuminated the World Wide Web for millions of people, otherwise only vaguely familiar with its potential and promise," - he explains, mentioning that his own startup, Crypterium, "makes buying, selling and spending of cryptocurrency in everyday life as easy as possible, and that's what will bring the next billions of people to using crypto."
There are two key problems all crypto holders are facing today, while trying to transfer coins to each other. Firstly, the wallet addresses can be confusing. This is how they look like - 0xc5b133a52145990313915612bd732f059330287f - so getting confused is really easy and the money will be lost.
The second problem is that any transaction takes a while. Ethereum can take minutes, and if it is Bitcoin - a transaction may take hours. When the blockchain networks are overloaded, transactions may take days.
Solution is on its way
Crypterium is aiming to solve both problems. There is no need to copy the recipient's wallet address. Consumers just need to know the recipient's phone number. They will get money even if they don't have any crypto wallets. Once the transaction is processed, recipients get an SMS with a link to get their crypto with some very clear instructions on what they can do with it. For example, they can use their newly acquired Bitcoin to replenish their mobile phones.
Moreover, the transaction of any cryptocurrency takes seconds. This has become possible because all transfers are done off-chain. When the user wants to spend the coins externally, the money is withdrawn from the sender's wallet inside Crypterium. While not spent, all the transactions are written in the system, make the transfer the fastest of all.
"We have analysed the most popular crypto wallets in the market, and none of them offer anything like it, though it sounds so exciting," O'Brien says.
Time will tell, if crypto transactions will become more popular than the payments with Visa and MasterCard, but this solution is for sure one big step towards global crypto popularization.