Common Issues in the Cryptocurrency Marketplace & How To Solve Them
As most of you reading this will likely already know, simply put cryptocurrency is a series of encrypted transactions on a digital, decentralized ledger independent of a central bank. A transaction occurs when one person passes an encrypted digital currency to into another person’s’ encrypted virtual wallet. Each wallet has a unique identifier, or public key used to share and exchange currency. This helps create a digital record of how much currency exists in each wallet and where that currency has been as well as ensuring that one person doesn’t give the same ‘coin’ to another user.
One of the biggest benefits of cryptocurrency is that it’s decentralized which means each network operates on a direct peer-to-peer basis. Holders of digital currency are ownersof that currency. There’s no central bank or authority that has rights to it.
Looking at the big picture, cryptocurrency has the potential to bring digital cash into poverty-stricken areas of the world and remote cultures, creating wealth and bolstering the global economy by expanding the financial network to people with limited or no access to traditional financial systems. In short, the emerging crypto-era brings with it the potential to revolutionize global commerce in a way we’ve never seen before.
Despite being around since 2009, cryptocurrency is still a new concept to the general public. And, like most new technology, there are pitfalls and inefficiencies that must be addressed before it can reach maximum potential.
Major Challenge #1 — Market Confusion
One current problem with decentralized currency is the sheer volume of open-market, peer-to-peer payment networks to choose from. The market has not consolidated around any strong leaders yet which adds to the confusion.
Very few wallets support multiple cryptocurrencies which means that consumers have to have multiple wallets in order to store, send and receive the digital currencies they need. Furthermore, the registration process is lengthy for consumers or investors looking to get started with cryptocurrency and in some cases can take weeks to get up and running.
Major Challenge #2 — Security & Risk
One of the biggest selling points of cryptocurrency is that it offers transparency while at the same time anonymity. This means that transactions can always be trusted once they are committed to the blockchain ledger and confirmed by other peers. On the flip side, loss, theft or fraud can never be reversed since there is no centralized authority involved and no way to track the transaction in reverse.
(Note: It should be noted that there are “core developers” and “miners” and “users” who each get a small “say” in how forks are handled. So, technically, it is possible for someone to trick the system if they had enough money to do so. Although theoretically possible, it would not be cost-effective to do so. In the case of Ethereum, the core devs created a hard fork to save more than $50M in investor lost funds, wreaking havoc on other transactions. So, it technically it can happen but is not supposed to.)
Current wallets and exchanges face numerous challenges. Most wallets don’t have the internal ability to directly work with exchanges. This forces users to maintain a wallet and maintain an exchange account, adding the confusion and complexity. The wallets that do have a direct exchange built in are very limited in functionality as well as currency options, even the biggest companies only trade in 2 or 3 digital currencies. Also, most are limited to specific countries within the EU or serve a limited geographic area. There is only one known company that has an app serving US customers and unfortunately that company is ripe for hacking due to how they keep (and do not provide) private keys to their users.
The second major issue with the current web based wallet-exchanges has to do with security and control. Since the current wallet-exchanges store your private key, your public key and your data on their platform it greatly increases the chance for a hacking theft to occur. And since cryptocurrency is unregulated, it means that without control of your own private key there is little available recourse if your currency is stolen or lost.
Finally, creating an exchange account is frustrating, slow, and has a high potential for theft of the consumer’s identity, deposited funds, and cryptocurrency.
Our Plan:
Javvy is a wallet and an exchange. By combining these two essential parts of the cryptocurrency marketplace into one platform, we make it easy, safe and intuitive to buy and sell.
Our network supports multiple payment methods and currencies for convenience and the Javvy solution is NOT web-based, avoiding the inherent risks of traditional web-based financial services. Institutional and power users will also benefit from the added ability to manage fund access with configurable (2-of-3, 3-of-5, 5- of-6, etc.) “multisig”, securing funds in shared wallets with multiple signatures.
When making peer-to-peer transactions and both parties agree, the wallet provides a type of escrow, which adds security by holding final payment until all established conditions are fulfilled.
Multisig also makes the wallet “shareable”, which appeals to corporate users needing to grant multiple users access to their Javvy wallet. When using multisig, multiple authorizations are required to access funds.
We make funds quickly accessible by providing instant verification in most countries and limiting unnecessary paperwork. Our corporate structure is designed in a way that allows for tailored compliance requirements based on the AML/KYC laws of the customer’s country of citizenship. This, coupled with a simple and rapid ID verification process, provides for a much faster and less frustrating user experience.
We decrease security risk by offering an exchange users can trust. This eliminates the need for investors to find one on their own with a company that could be unscrupulous. At Javvy, security is a priority and goes far beyond just pins and passwords.
This is the network the market’s been waiting for to solve the common issues within the cryptocurrency space: security and ease of use.
