While the crypto markets are continually advancing in certain respects, in some ways we are seeing less-than-optimal obstacles. After all, of US citizens still see cryptocurrencies as a short-term fad.
This is hard for many crypto enthusiasts to understand given the power that this technology has to increase efficiency and redistribute rewards and decision-making, in practically any industry. There is a considerable gap between people who are working at the cutting-edge of cryptocurrency and those still operating under a legacy framework with no real viability aside from being a continuation of older architecture.
However, there are reasons for this sluggishness and this is because barriers to entry are too high and need to be broken down in order to see further breakthroughs.
The Barrier Of Hacks And Scams
One of the most obvious barriers to entry is that of criminality. It’s no secret that cryptocurrency and NFTs are subject to an enormous number of The new and unregulated market is a dream come true for all types of cyber-criminals, who make enormous profits through creative schemes to entice people to send their tokens to a wallet of their choosing.
While mainstream outlets are indicating that regulation is the way to deal with crime, this is a distraction from the deeper fact that you cannot regulate the crypto economy without destroying it. Reducing hacks and scams can be done by education, particularly with regard to wallet security and private key maintenance.
The legacy banking system also went through phases of hacks of scams before people wisened up and learned better security protocols. The banking system now enforces Two Factor Authentication (one of the most intelligent security precautions you can take) and so do all high-quality crypto exchanges and providers.
The unfortunate fact is that most newcomers are incredibly naive in terms of sending their cryptocurrency to criminals and are also naive in terms of believing hype relating to tokens that have no real value. A mix of educational content and common sense through experience is required to reduce this barrier, but it has already gotten a lot better than it was pre-2020.
The issue of criminality lies in user awareness and not an absence of security precautions or regulation. Education and experience are needed.
The Barrier Of Gender Disparity
Cryptocurrencies and the large field of computer science are predominantly male-orientated. More women are needed in order to provide a more equitable approach and this can be done via incentives and education.
The issue of gender equality can be a sensitive one and some could contend that it simply reflects a difference in terms of interests between genders, as opposed to a genuine barrier. After all, cryptocurrency is open-source and free; the blockchain does not care about your gender. But it makes far more sense when you consider that female founders need to acquire funding and backing from angel investors and venture capitalists (who are often male). The gender disparities in business are here.
This is not a trivial matter when you take it a little further; the future of the world will likely be built on smart contracts powered by distributed ledgers, with software and AI. If all the programmers are male, this would be reflected in community, city, nation, and international governance.
Blockchain does not care about gender; but it does care about equal representation and a fair process for all. Incentives to get more women into this area are of crucial importance as women need to have equal representation in governance, which will be intimately tied in with technology as the future unfolds.
More women are needed in Web3 projects and associated supportive industries. This will help built a more equitable global governance system.
The Investment And Data Synthesis Barrier
The sheer rate of growth of the crypto and NFT markets has meant that people are largely left in the dark about what to invest in, how long to keep it, and what to do with it. The industry is advancing at an alarming rate and very few people know how to safely store funds and how to track and monitor the market.
This is where tools such as those provided by can represent their use case. Defy Trends tracks and monitors on-chain and off-chain information and assigns each coin a score between 0 - 100. These metrics allow traders and investors to assess coins based on key data points without relying on influencers or friends, or people who might not have the best intentions at hand.
This tool also helps prevent falling into hacks and scams and it takes social sentiment into its algorithm, which is hard to assess on your own. This is also a female-led team that is pushing for more women in the wider industry, breaking down multiple barriers in a myriad of different ways via their education platform and global ambassador program.
Without this tool, it is nearly impossible to get a holistic view of the market and the quality of the plethora of coins and projects that come out every day. Otherwise, it is easy to invest in a low-quality coin or project.
The legacy market has an enormous number of trading tools which the crypto markets are missing. This is a significant barrier to entry - a sophisticated trader does not want to enter into a market without a way to intelligently synthesize information so it can be made use of correctly.
Intermediary tools are needed for crypto adoption as they help stabilize the industry from an investment perspective. However, they need to be decentralized in nature to avoid the pitfalls of legacy finance.
The End Of All Barriers
While barriers do exist, the trends are largely pointing towards their eradication. Not so long ago, the entire industry was dismissed. Now, this perspective is ludicrous to all but the most and outlets, who likely have vested interests.
Slowly, blockchain is achieving its intended aim of democratizing rewards and governance for all network participants, not merely a small class of shareholders and executives.
