Crypto infrastructure provider Blockdaemon and Bitcoin sidechain VerifiedX said they are teaming up to make day-to-day crypto use simpler for non-technical users.
The move, which includes earning dividends to send money overseas, will see the same escrow and blockchain infrastructure that Blockdaemon provides to banks and asset managers integrated into VerifiedX’s two consumer apps: the Switchblade self-deposit wallet and the Butterfly social payments platform, according to an announcement shared with CoinDesk on Thursday.
The experience is designed to feel closer to Paypal’s (PYPL) Venmo or Block’s (XYZ) Cash App social payment apps than a traditional Web3 workflow. Users can earn returns on bitcoin and stablecoins, borrow against their holdings and access onchain credit markets without parking funds on an exchange, deal with custodian banks or juggle seed phrases (the long stream of random words users need to back up and recover their assets), the firms said.
Blockdaemon provides the technical backbone, including node operations, staking systems, and liquidity management, while VerifiedX handles the user experience, including payments, merchant transactions, and simple asset transfers. The combination is intended to bring self-sufficient DeFi capabilities to people who have no interest in navigating dashboards or connecting 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 sentences, a process that offers a steep learning curve and high risk of irreversible errors.
This highlights the need for these platforms to emulate the simplicity of popular fintech apps, 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 login and two-factor authentication.
