Crypto infrastructure provider Blockdaemon and Bitcoin sidechain VerifiedX said they are partnering to simplify everyday use of cryptocurrencies for non-technical users.
The move, which includes earning returns by sending money abroad, will see the same staking and blockchain infrastructure that Blockdaemon provides banks and asset managers built into VerifiedX’s two consumer apps: self-custody wallet Switchblade and social payments platform Butterfly, according to an announcement shared with CoinDesk on Thursday.
The experience is designed to be more like Paypal’s (PYPL) Venmo or Block’s Cash App (XYZ) social payment apps than a traditional Web3 workflow. Users can earn performance with bitcoin and stablecoins, borrow against their holdings and access on-chain credit markets without parking funds on an exchange, dealing with custodians or juggling seed phrases (the long stream of random words that users need to back up and recover their assets), the companies said.
Blockdaemon provides the technical backbone, including node operations, staking systems, and liquidity management, while VerifiedX handles the user experience, including payments, business transactions, and simple asset transfers. The combination is intended to bring self-custody DeFi features to people who have no interest in browsing dashboards or connecting to on-chain wallets.
Crypto/DeFi/Web3 platforms often struggle with mass adoption primarily because their user experience is often clunky, complex, and intimidating for the average user. due to unfamiliar concepts like wallets and seed phrases, a process that offers a steep learning curve and a high risk of irreversible error.
This highlights the need for these platforms to emulate the simplicity of popular fintech applications, which hide the technical complexities of sending, receiving and managing money from the user and simplify the process to features such as email and password logins and two-factor authentication.
