Cryptocurrency exchanges are the most common gateways for anyone who is trying to get into the ecosystem. They provide opportunities to buy, sell, trade or use cryptocurrencies in different years.
Over the years, we have watched the industry evolve, and cryptocurrency exchanges have played a significant role in this evolution. There used to be a time when buying any other cryptocurrency on an exchange apart from BTC was almost impossible. After a while, ETH became the next to be easily accessed.
Things Have Changed Over Time
Gradually, the exchanges have grown from just avenues to buy or sell cryptocurrencies to platforms where you can actually trade them and make money. This has also led to the introduction of margin trading features on many platforms and several other features. Despite all these, we are yet to see the end of this evolution. The interesting thing is that the changes are taking place so quickly that you cannot afford to be distracted, as long as you are an active participant in the industry.
Clearly, what the industry needs desperately is adoption. All the various changes and adaptations that we are seeing today in the crypto industry are channeled towards how to make the technology more implementable by the larger society. With that in mind, and with the role that crypto exchanges play, a lot of responsibility seems to lie on them.
The Next Phase of Evolution
The Director of Product and Technology at KuBitX, Victor Olorunfemi believes that the next phase of evolution with crypto exchanges will be the trading of asset-backed tokens that real mainstream people can relate to. This includes tokens backed with assets such as coffee, tea, and other commodities and natural resources. According to Victor, this might require partnerships with established mainstream establishments.
Tokenizing traditional commodities enables people to actually trade, hold, spend and hedge their risks in ‘real money’ that can technically be converted to the corresponding asset, kind of like what we do with stablecoins today.
He notes that the ultimate achievement will be to make the exchanges happen P2P such that people across borders can exchange value using tokenized commodities that they readily have access to.
Relating this to what we have today in the industry, Victor notes that the current phase should be used in ramping up development of relatable crypto and blockchain products that will make it easy to educate the regular Joe on the street. Less emphasis should be placed on building products for geeks, using geeky terminology as well as geeky onboarding processes.
Victor explains that most people do not care about, neither do they really have to know what runs under the hood of a (blockchain) tech product, as long as it works and makes life more comfortable. People need to be shown how more activated, versatile, superior, transparent, swift and interchangeable their “money” becomes when it gets “tokenized”. This, he says should be done without much of a lecture as to how it works. “My old uncle does not necessarily understand TCP/IP, all he wants is to bring out his phone, tap on the FaceTime app icon and get a call across to the other side of the world,” he says.
Flexibility in Payment is Already Here
With respect to this developing trend, Victor tells Coinstituency that his company, KuBitX is already positioning itself to be relevant in the new ecosystem. He claims that KuBitX has already created a product called “KBX Wallet” in public beta that makes it possible for people to spend their crypto on everyday things such as airtime, flight tickets, religious donations, gift cards, electric bills, etc.
He also notes that currently, the wallet covers pretty much over 2000 bill types in Africa at the moment. It was built in a way that is easy to use, like any other traditional payment app, but with way more gravy. “We see our product as an ideal gateway between the mainstream payments and remittances ecosystem, and the crypto-verse,” says Victor.
Beyond this creation, Victor also notes that crypto will become more mainstream and KuBitX will be among those pushing the frontiers using a combination of “dumb but brilliant solutions”, and a passionate grassroots educational movement to help people in emerging economies attain more financial inclusion in this 21st century.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.