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Web3 Must Overcome Significant UX Challenges to Reach Mass Adoption

User experience (UX) design affects nearly every waking moment of our lives. It’s not just digital either. Have you ever thought about the UX of doors? Perhaps a brief refresher of what UX is, will help. A useful definition of UX is as follows: ”A person’s perception and responses that result from the use or anticipated use of a product, system or service” (from The International Organization for Standardization).
The following opinion editorial was written by Bitcoin.com’s head of product experience Alex Knight.
Back to doors. We’ve all experienced a door that didn’t open the way it should. That’s a UX failure right there (there’s a name for such doors, search for “Norman doors”).
Thankfully Norman doors are rare, as are their computer software and web2 counterparts. Unfortunately, web3, still in its infancy, is rife with Norman doors. Until we fix most of these proverbial doors, web3 mass adoption is unlikely.
In this article I’m going to discuss three areas web3 needs to work on. Caveats: this list is not comprehensive and since my area of focus is web3 wallets I’m going to talk about UX challenges through that lens. The three areas are:

Security
Education
Ease of use

Security
That security is vital for software that handles financial instruments is obvious. Two of the bigger security challenges right now are:

Handling cryptographic keys
Unintelligible crypto transactions.

I believe that self-custody is the most important concept in crypto. This is not to say everyone must use self-custody. However, that it always remains a viable option is critical. I direct you to Bitcoin.com’s CEO Dennis Jarvis’ article on the topic for a compelling defense of self-custody. So far, self-custody has meant users must manage cryptographic keys. An early UX advancement was using recovery phrases, sometimes called seed phrases, instead of handling cumbersome unintelligible cryptographic keys.

While recovery phrases improved upon cryptographic keys, recovery phrases have proven to also be pretty complicated. There is a constant drip of stolen crypto due to people not fully grasping the importance of their recovery phrases, for example exposing or losing them. This leads to the second security problem: unintelligible crypto transactions. In most crypto scams, people willingly enter into transactions they don’t fully understand that send their cryptoassets away.
Moving Away From Recovery Phrases
Many people are working on the problem of recovery phrases. Vitalik Buterin advocates something called social recovery wallets that don’t require recovery phrases. This concept has a lot of promise, though I believe a lot more work needs to be done to make it usable for most people.
Another tactic is to replace recovery phrases with something more familiar — passwords. Just as a recovery phrase (set of random words) is more familiar than a cryptographic key (string of hexadecimal characters), a password is more familiar than a recovery phrase.
We offer automatic cloud backup services. Create a single custom password that decrypts a file stored in your Google Drive or Apple iCloud account. If you lose access to your device, you can reinstall the Wallet app on a new device, enter your password, and you’ll again have access to all of your cryptoassets. By creating a mix of encryption and cloud services tied with custodial services to help retrieve things, we can maintain a self-custody service while leveraging centralized technologies to lower the burden on the user. The ease-of-use of automatic cloud backup compared to manual backups through recovery phrases is easy to visualize:

Human Readable Transactions
Wallets need to get better at warning users of unintended outcomes of transactions. For example, a common approach is to get users to sign a ‘SetApprovalForAll’ transaction, which allows an adversary to transfer assets out of your wallet into theirs. Wallets should alert users when this kind of transaction comes up, describing the dangers clearly.
Image from @mulligan on Twitter.
Even better, wallets could present users with a more human-readable summary of potential asset changes transactions allow. For example, you might think you are swapping one asset for an appropriate amount of another, when in fact you are swapping all of your assets for nothing. The following helps visualize better what assets a potential transaction can change.
Image from @nishthenomad on Twitter
Education
There are two ways that most people first interact with blockchain technology: a centralized exchange and a self-custodial software wallet. The first time people interact with a blockchain “directly” will almost always be through the latter. Software wallets entail a large amount of responsibility and an even larger challenge in easing new users into the “deep end” of crypto – decentralized finance (DeFi).
Education is a major component of this. It’s essential for providing the right opportunities for users to upskill and build towards full self-custody and safely move away from reliance on centralized support. People being more comfortable/safe with crypto will help increase adoption and utility as it becomes a more viable alternative to traditional finance. The abundance of technical jargon doesn’t help. As is common with most new technology, early adopters are usually extremely technical.
Continuing Education
Every action your wallet has should keep in mind a future action that you wish the user to take. For example, let’s assume that the first action a new user should take upon downloading the wallet is buying crypto with fiat. You don’t want to overwhelm new users with hundreds of choices. It’s probably prudent to only give new users a curated list to purchase, with an option of the fully expanded list.

First actions, such as buy, should lead to a chain of in-app prompts/notifications/emails to try other actions like swap. Swapping is a big step from buying since every action in a DApp requires paying a transaction fee in the blockchain’s native token, something that has no analog in web2.

Jargon
Wallets are full of technical jargon that is non-descriptive to most people. A great example of this is “non-custodial wallets.” What does this mean? It has recently been adjusted to “self-custody” which is better, but still not perfect. Another is “multisig wallet.” Even knowing the full meaning, “multiple signature wallet,” will not tell already-knowledgeable people what it means. Even users who persist, digging deeper by reading full explanations, will probably have some difficulty understanding what it is and how to use it. At Bitcoin.com we use “shared wallets,” which we believe anyone can understand while not compromising the original meaning.

Ease of Use
This last category is not only one of the biggest issues we face, but is interwoven into the previous categories. As crypto matures, it must find a wider audience. The developer-driven process must make room for design. We are slowly starting to see a shift to more design-driven solutions, but there is a long way to go. Let’s look at a couple of examples, starting with mulitsig wallets.
No new user will be able to guess the usefulness of these from that name. Worse still, even advanced crypto users don’t use them because of complicated interfaces. This is tragic, because, like Vitalik Buterin co-founder of Ethereum says, multisig is likely the safest way to store your cryptoassets.

IMO fancy hardware stuff is all overrated and most people should just store the bulk of their coins in a multisig ( >= 5 participants) where most of the keys are held by trusted family and friends.
— vitalik.eth (@VitalikButerin) August 14, 2022

Shared Wallets
First, “multisig” needs to be retired. Next, multisig options need to be stripped out for most users. Most people would abandon the process when met at a screen like this:

Sharing the newly created wallet should be as seamless as possible, unlike this:

The QR code is enough, extraneous info like the public key can be taken away:

A “share” button makes it even easier for users.

Human Readable Send Transactions
Sending crypto, arguably the most basic action one can take, is still too difficult. There have been attempts like those made by ENS, Unstoppable Domains, and FIO to solve the problem but it’s still a bit of a mess, with different providers using similar domain names and then relying on the wallet to choose which one is correct and so on.
We’ve taken a different, I’d argue easier, approach: shareable links. You don’t need to know the person’s crypto address or ENS. Instead, you send the recipient a link via any messaging app (email, Whatsapp, SMS, etc.). The recipient just has to click on the link and follow the instructions to receive the payment.

Conclusion
I have no doubt that web3 will change the world. The future is already taking shape, but suboptimal designs must be relentlessly chiseled away. I am proud of the design choices Bitcoin.com has made, but have no illusions that they are destined to be the best ones. Bitcoin.com is one of many companies making products that push web3 design forward. I can’t wait to see all of the design innovations that will have helped bring our industry to mass adoption.

Tags in this story

crypto wallet, Human Readable, Human Readable Addresses, multisig, multisignature, Non-custodial wallet, QR Codes, Seed Phrase, Self-custody, shareable links, user experience, UX, Web3
What are your thoughts on this story? Be sure to let us know in the comments section below.

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This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.
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More Popular NewsIn Case You Missed It

Binance CEO CZ on FTX crash: “We’ve been set back a few years”

Crypto exchange FTX joined many other fallen projects — including Terra (LUNA), 3AC, Celsius and Voyager — in filing for bankruptcy in 2022. Owing to the devastation caused by multi-billion dollar losses suffered by businesses and investors, the man running the biggest crypto exchange, Binance CEO Changpeng “CZ” Zhao, envisions an era of greater regulatory scrutiny in the near future.With one of the biggest crypto businesses falling overnight, CZ believed the episode was devastating for the industry, which took away a lot of consumer confidence. Speaking at Indonesia Fintech Summit 2022, he said:“I think basically we’ve been set back a few years now. Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”Regulations in crypto historically circled around Know Your Customer (KYC) and Anti-Money Laundering (AML). However, CZ reiterated his long-standing belief that regulations must focus on exchange operations, such as business models and proof of reserves. As a result, he believed that tighter regulatory scrutiny around crypto business operations is around the corner.CZ sharing his thoughts on FTX and the future of crypto during Indonesia Fintech Summit 2022. Source: YouTubeWhile FTX’s collapse is bound to have a short-term impact on retail investors, in the longer term, this is a wake-up call for discussions about how to handle risks across crypto ecosystems. Speaking specifically about FTX, he said:“The last three days is just a revelation of problems. The problems were there way longer. This problem wasn’t created in the last three days.”CZ pointed out that the biggest red flag about FTX was Alameda Research’s financials, which were full of FTX Tokens (FTT) that made him finalize the decision to sell off Binance’s FTT holdings worth over $2 billion at the time. The following day, FTX CEO Sam Bankman-Fried reached out to CZ with a deal that “did not make sense from a number of fronts”. At the same time, CZ hoped to get an over-the-counter (OTC) deal for protecting users:“Original intention was let’s save the users, but then the news of misappropriating user funds, especially U.S Regulatory Agencies investigations (made us realize) we can’t touch that anymore.”CZ believes that increasing transparency and educating regulatory agencies about crypto audits and cold wallet information will make the industry much healthier. Finding the right balance of rules is not ask, he said.The entrepreneur highlighted the need for easy tools for saving private keys and other security functionalities but argued that the crypto ecosystem will grow in incremental steps and not giant leaps.Related: Binance Proof-of-Reserve pledge gains support following FTX crisisTaking a proactive approach in regaining investor confidence, Binance published a new page titled “Proof of Assets,” which displays details about the exchange’s on-chain activity for its hot and cold wallet addresses.“Our objective is to allow users of our platform to be aware and make informed decisions that are aligned with their financial goals,” said Binance in an official statement.

Elon Musk Says He Had a Conversation With FTX’s SBF on the Twitter Deal

Elon Musk recently said that he had a conversation with Sam Bankman-Fried before the Twitter deal. He also shared some predictions going forward.

The world’s richest man recently joined a discussion on Twitter with over 60,000 listeners to talk about the FTX hack and bankruptcy.
Musk revealed that he had a conversation with the exchange’s former CEO – Sam Bankman-Fried and that his opinion of him wasn’t the best.

… I got a ton of people telling he’s got huge amounts of money that he wants to invest in the Twitter deal and I talked to him for about half an hour and I know my bullshit meter was redlining. It was like, this dude is bullshit – that was my impression.
Musk said he hadn’t heard of him before that, while adding:
[…] Everyone including major investment banks – everyone was talking about him like he’s walking on water and has a zillion dollars. And that was not my impression – that dude is just, there’s something wrong, and he does not have capital and he will not come through. That was my prediction.

Later on, Musk also reiterated the importance of keeping funds on cold storage. He also said:

I think there probably is a future for Bitcoin, Ethereum, and DOGE. I can’t really speak to the others. But if you’ve got one of those three in a cold wallet and off an exchange, I think my guess is it works out well.

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Risk-loving MATIC traders can scour for a buying opportunity, here’s why

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

The higher timeframe structure was bearish, but there was a possibility of a bounce
The $1 mark could be crucial for bulls and bears in the coming days

MATIC saw growth in the DeFi space as its Total Value Locked (TVL) outdid that of Avalanche’s. It also received praise from Vitalik Buterin regarding its newly launched zk-EVM.

Read Polygon’s [MATIC] Price Prediction 2023-2024

But this slew of positive news did nothing to stop the nasty price action on the charts. On 8 and 9 November, MATIC shed nearly 40%, only to bounce by 45% on 10 November. For higher timeframe traders, an opportunity to buy the asset can arise soon, but caution would be key.
A bounce from a gap on the charts can occur, but the sentiment can quickly sway bearish
Source: MATIC/USDT on TradingViewThe past week saw a significant volume breakout past the range (yellow) MATIC has traded within since July. In this process, the $1 psychological mark was convincingly broken. Near the $1.3 level, substantial resistance was seen. With Bitcoin’s shift to a lower timeframe bearish bias on 7 November, MATIC began to retrace.
It dropped as low as $0.77 before recovering spectacularly to reach $1.14 on 10 November. For higher timeframe traders, this kind of volatility can be daunting. On the other hand, lower timeframe traders might have a field day trading the volatility.
The positives for MATIC were that Relative Strength Index (RSI) could climb above neutral 50 while the On-Balance Volume (OBV) defended a support level from mid-September. Yet, in the face of the price action in recent days, these factors might not count for much.
A glance at a lower timeframe chart (four-hour) showed that the rally on 10 November left a fair value gap (inefficiency) in the $0.96-$1.02 region. Hence, it was likely MATIC would drop to this area in the coming days. Traders with a larger risk appetite can assess buying opportunities in this zone on the lower timeframes.
A bounce from this zone can seek out the local highs near $1.3. Invalidation of this bullish idea would be a session close below $0.9, as $0.92-$0.96 has been a support zone in recent days.
Supply on exchanges drops while sentiment is weakly positive
Source: SantimentThe supply on exchanges metric began to trend upward on 21 October and continued to do so till 6 November. During this time, MATIC saw a steep rally and an even quicker sell-off. Since then, this metric witnessed a dip. The inference was that selling pressure could have waned, based on the evidence this metric provided.
In a similar fashion, the weighted sentiment behind MATIC was hugely positive during the rally to $1.3 but petered out after that. It was certainly fair to say that investor confidence has taken a hit in the past few days. Active deposits of MATIC have also been high in the past week, which resulted in huge surges in short-term selling pressure.

FTX Employees Rumored To Be Behind $600M Potential Hack

FTX and FTX US wallets have been impacted in a potential hack recording over $600 million in tokens transferred by the exploiter. FTX US General Counsel Ryne Miller earlier tweeted the wallet movements as “abnormal” and the facts and reasons were unclear to him or the FTX team.

In the following tweet, Ryne Miller claimed the FTX team hurried precautionary measures to move all digital assets to cold storage after recording some unauthorized transactions. Some believe former FTX developer Samuel Hyde is behind the hack.
Former FTX Employees Behind the Hack
On-chain experts observed millions in outflow from FTX and FTX US wallets, suspected to be the start of the bankruptcy process. However, FTX employees confirmed to ZachXBT that they don’t recognize these withdrawals. Moreover, FTX Community Chat admin dropped a message in the Telegram group saying that FTX has been hacked and FTX apps are malware. The admin also urged users to delete the app and warned of possible Trojans on the FTX website.
FTX US general counsel Ryne Miller in a tweet claimed that unauthorized transactions observed by FTX led the team to expedite transfers from wallets. He pointed out that FTX US and FTX.com are required to move all digital assets to cold storage as a precautionary measure as part of the Chapter 11 bankruptcy filings.
“Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary steps to move all digital assets to cold storage. Process was expedited this evening – to mitigate damage upon observing unauthorized transactions.”

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Defi and NFT project founder Foobar claimed FTX counsel noticed the black hat exploiters withdrawing tokens and swapping to ETH and DAI. Thereafter, he took white hat actions to save some funds from unauthorized transactions. Moreover, ZachXBT estimates the black hat transfers at nearly 450 million and white hat rescue from multisig at nearly 200 million so far.
Meanwhile, some claims FTX employees are behind the exploit, especially former FTX developer Samuel Hyde. While the motive is unclear, but the action may have been due to a conflict with the top leadership earlier this year.

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Tether Blacklists USDT Related to Hacker
Several on-chain data revealed that the exploiter was converting stablecoins to DAI and other crypto assets to Ethereum. As a result, stablecoin issuer Tether blacklisted $3.9 million USDT on Avalanche (AVAX) and $27.5 million USDT on Solana (SOL) of the FTX attacker, reported on-chain sleuth ZachXBT.
FTX Token (FTT) price fell to a low of $2.05 today. In the last 24 hours, the price has plunged over 35% and 90% in a week. The crypto market further slides over 3% amid the pressure due to the FTX crisis.
Read more: Over $1 Billion In Customer Funds Missing At FTX

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Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

“This Dude is Full of Shit” Elon Musk Shares his Impression of SBF in a Twitter Space

In a Twitter Space hosted by Mario Nawfal, Twitter CEO Elon Musk shared his impression of Sam Bankman Fried when latter approached him regarding a potential investment in Twitter.

Bankman-Fried contacted Musk in March, expressing his desire to participate in Musk’s bid for Twitter. When asked about SBF’s involvement in the deal in the  ‘Emergency Space‘ on Twitter, Elon said  “I had never heard of him. People told me that he’s got money that he wants to invest. And I talked to him for about half an hour.”

Also Read: Reports Suggest More Than $1 B In Customer Funds Missing At FTX
“My bullshit metre was like redlighting. This dude is full of shit. That was my impression,” he said. Elon told the audience, “That dude is just so wrong. He does not have capital. And he will not come through. That was my prediction. And that’s definitely what happened.”

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Elon Musk’s reaction to meeting SBF. Taken from an earlier Twitter spaces. h/t @rugmedry
pic.twitter.com/xtlXiGdZzb

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— Autism Capital 🧩 (@AutismCapital) November 12, 2022

Later, the host asked Elon Musk what recommendation he would give to the crypto community as it scrambles to save itself post FTX’s meltdown. To this, Elon agreed with the host’s stance on not storing crypto assets on exchanges, saying “Not your keys, not your wallet.”
Also Read: US Midterm Elections and FTX Collapse: Here’s How Crypto Twitter is Reacting

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Dhirendra is a writer, producer, and journalist who has worked in the media industry for more than 3 years. A technology enthusiast, a curious person who loves to research and know about things. When he is not working, you can find him reading and understanding the world through the lens of the Internet. Contact him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

XRR Lawyer Hints Possible Negotiation Deal Between SBF, SEC

FTX News: Sam Bankman-Fried (SBF), Former CEO of FTX has been alleged of funding and lobbying in Washington, D.C over the last year. Now, the XRP holder’s lawyer has claimed that SBF and U.S. SEC are working on a negotiation deal.

Is SEC bailing out SBF?
John Deaton, Amicus Curiae in the XRP lawsuit called US representative candidates to get ready to file Subpoenas over SBF’s mother, Barbara Fried. He asked to add private emails, texts and messaging apps.
He claimed that SBF’s mother has likely reached out to Gary Gensler, SEC chair in an attempt to bag negotiations deal for her son. This will be an attempt to avoid a life sentence for the Ex FTX CEO.
Earlier, Coingape reported that expert believes that the US Watchdogs including SEC might be helping SBF to get away from the FTX crisis. However, the commission has already launched a probe on the FTX US. The agency will also investigate the probable connection between FTX and several other firms regarding SBF.
XRP Lawyer drops some of his perspectives on the FTX crisis handling. He highlighted that a software developer sits in jail without any clear evidence of what he did. There is just a piece of evidence that he provided the code.

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Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.