Issues in the cryptosphere
Cryptocurrency is a growing technology. It took the world by a storm when it was introduced. Barely a decade down the line, the world seems to be swimming in related technologies.
Many people, especially in the banking industry were skeptical about a trustless system of monetary transactions. They were not sure if the cryptocurrencies would last or were only a fling. Surprisingly more people continue finding blockchain applications irresistible. The adoption rate continues to rise and there is no doubt anymore that this is the future of money.
Despite these goodies, there are still many issues in the industry. Unfortunately, they are not things we can just ignore. Here is at a look at this problem.
Too much centralization
There is something called over-centralization in the cryptosphere. When conducting transactions within a blockchain and exchanges, this is one of the factors you cannot miss on. In addition, there is a single central software or hardware element that handles all the transactions.
Any cryptocurrency wallet or exchange can use over-centralization to make the process go faster. They use it to monitor customer behavior, and optimize processes in the business.
But cryptocurrencies are supposed to be anonymous. One needs to feel they are safe from prying eyes and possible disruption in their funds. Centralization of such services does the total opposite. It exposes them to the decisions made by authorities. Each country has regulation for cryptos registered there – for instance the SEC in the USA.
The abuse on KYC and AML procedures
Cryptocurrencies have the right to collect customer data. This includes their identity and their sources of income. These procedures are known as know-your-customer and Anti-money-laundering. It also involves ATF (Anti-terrorist –finance).
Cryptocurrencies are providing a platform for such activities. This has forced many countries to come up with strict rules and requirements.
They seem to be in good faith but they make things difficult for everyone. Even the law-abiding citizens are caught by the axe when they want to make transactions.
Only one network – Ethereum – seem to be the center of focus
You may have not noticed it yet but most of the operations on the decentralized market are linked to Ethereum. They are mostly conducted through services that support ERC-20 tokens. This is the case for more than 80% of the services on the market.
It may seem like a good idea at first site. But there are a number of problems associated with this method. For instance, lack of decentralized services on Bitcoin and USDT.
The problems discussed above are only a few that are more visible.
A better option
The Atomic swap wallet provides a better solution to this problem. Entrepreneurs can now access the global market. This is a cross platform solution that will play a major role in handling the issues above.
With the atomic swap wallet, there will be instant exchange for any token with any major blockchain in the world. This is not only a great safety measure in business tokenization, but a more beneficial and adaptive approach for involved parties as well.