The recent resurgence of news around bankrupt crypto exchangeMt. Goxpreparing to reunite customers with (just 15%) of their lost Bitcoin has been a sobering reminder of crypto’s battle
with scams. The industry has a reputation problem; and given the increasing numbers of investors and users entering the
space, it's time to step up and take action.
Paul Quickenden, blockchain futurist and Chief Commercial Officer at Easy Crypto, weighs in on what the industry needs
to do to improve its reputation through two key focuses.
Two sides of the same coin…
In the rapidly evolving world of crypto, trust must be continually earned by institutions, providers and innovators as
they design and build out the functionality and user experience to engender the trust that the next wave of adopters
needs and expects.
At its core, 'digital trust' is two sides of the same coin: 'operational' trust ensures that technology is reliable and
less prone to scams and attacks, while 'relational' trust focuses on empowering, educating and protecting users. For the
industry to grow sustainably, both types of trust must be in place to ensure decentralised finance is as inclusive and
fair as possible to its diverse range of users.
Operational trust
Investors and potential users all want (and deserve) a safe, secure investment environment. While blockchain technology
inherently offers security, crypto innovators can enhance this by integrating security and clever UX into the design,
development and deployment stages of crypto offerings (such as exchanges):Enhanced security measures: Using blockchain analytics to detect and block suspicious transactions is key to keeping users safe. Monitoring user
activity and system access can help service providers detect and respond to threats in real-time. Easy Crypto frequently
declines transfer or deposit requests when fraudulent activity is suspected, thereby prioritising user safety over
short-term profits to build trust and demonstrate good digital citizenship.High standards of quality assurance: Rigorous testing before releasing software to the public and providing timely updates and patches that address
vulnerabilities and keep software secure is key.Data privacy: Adhering to major data protection regulations and clearly communicating how data is collected and used is key to
building user trust.Zero trust architecture: Limiting access to systems and data based on the principle of least privilege to reduce unauthorised access risks is
another important way of keeping user data and assets safe.
Importantly, crypto exchanges that take custody of investor funds are essentially replacing centralised control with
another form of centralised control in which users cede access to their money to someone else. Non-custodial exchange
models in which users manage their own crypto via their own personal wallets, underscore user autonomy and security.
Ensuring users can do so safely and with minimal friction is important, including innovating around how users ensure
they safeguard their access. Many wallet innovators believe self-custody doesn't necessarily have to mean using a
complex (and in many cases, easy-to-forget) seed phrase. Technologies like Multi-Party Computation (MPC) use ‘key
shards’ rather than entire seed phrases to authorise transactions, providing users effective control over their assets
with options like Two-Factor Authentication (2FA). Easy Crypto is also pioneering new ways of offering users wallet
‘back-up’, including password-free approaches and ‘Social recovery’ which involves designating trusted individuals to
help you in the recovery process; and cloud backup. (In short, we are trying to make it human.)
Relational trust
Investors and newcomers want more than just a secure platform; they want to be valued as a customer and receive support
in their crypto journey. While robust security is crucial, the industry must foster a culture of trust and transparency
that goes beyond technical safeguards to create a user-centred environment that empowers, educates, and protects users.
This relies on both regulation and empowerment:
Industry-wide regulation
Proper regulation is needed to give consumers confidence and ensure the same standards expected from their other
financial service providers. This will require coordinated, cross-industry collaboration globally. Encouragingly,
initiatives like the Digital Trust Working Group formed in 2023 to advise the Asia Pacific Economic Cooperation, which
includes 21 member economies, are already underway with key representation from the blockchain industry.
Empowerment
Adopting a user-centred approach to simplifying all aspects of the crypto experience will help accelerate adoption by a
great number of users.
This needs to include:Communicating clearly and giving detailed guidance: Crypto projects and platforms should use simple, plain language to communicate. Exchanges need to provide information
and tools to help users make better decisions around crypto, available in multiple languages. Easy Crypto ensures
education and information are provided at every step for its users, aligning with its mission to equip people with the
tools for better financial decisions and re-educate them about crypto's potential.Building culture of trust: Demonstrating a commitment to customer well-being by establishing channels for customers to raise feedback and
concerns is essential. Responsive customer support is crucial for addressing issues related to digital trust; no one
wants to endure long wait times when it comes to the safety of their money, digital or otherwise.
There’s work to do to change the narrative completely; but through a focus on both operational and relational trust, the
crypto industry will be able to answer “YES!” in good conscience to the question: "Is it safe to invest in crypto?"