Why Cryptocurrency Exchanges Need Better Identity Verification?
The COVID-19 pandemic has entirely changed our daily operations. Even the most basic tasks like going to work or dropping our kids at school have changed over one year. Offices, schools, banks, even grocery shopping, has moved online.
With people locked-up in their houses, the economy has taken a dip in most parts of the world today. However, the pandemic has not been bad for everyone; for some businesses, it has proved to create a rather positive impact.
The sales of laptops, tablets, and mobile devices have seen a steady growth rate during this time. Amazon has revealed that it has had record-breaking sales of gadgets, electronics, and hardware equipment such as coaxial cables during the past year.
Another area that has seen a steep rise in demand and popularity is the cryptocurrency industry. Crypto-currency has become a haven for people and has created a positive impact on economies as well.
Digital currencies have widely become popular in today’s era; however, certain issues are becoming more prominent with the growth in popularity. An important issue is the identity verification process and the tedious process that one has to go through to purchase cryptocurrencies.
Below are some reasons why identity verification has made it difficult to adopt cryptocurrency on a mass-scale.
A major issue that cryptocurrency exchanges portray for the buyers is the lack of clarity. Since it is a new and developing field, people who are in charge of cryptocurrency themselves are not clear about digital currency. Investors and developers don’t agree on the rules of cryptocurrency, and many still remain undecided on the difference between a utility token, an equity token, and a security token. There are so many questions like these that are left unanswered. If the people working for cryptocurrency are unable to answer such questions, then how is the layman supposed to understand the technicalities?
Having variety in your business services and products is great, but not when it comes to cryptocurrencies. Did you know there are almost 1800 cryptocurrencies active in the market today? They all differ in functionality and are not equal either. Having too many cryptos at hand has made it difficult for a plan which would help in the mass adoption of digital currencies. With so much to choose from, how can one expect a layman to make his decision and know which one would work best for him?
Cryptocurrency management may be complex for the majority of masses. Usability has become a major hurdle in cryptocurrency adoption. People nowadays want convenience, which is why they opt for easy passwords, keep themselves logged in onto their accounts, and take no security measures whatsoever. Moreover, the older generation is not well-versed with technological uses. They prefer automation over entering long and complicated passwords to access their cryptocurrency accounts.
Completing the cryptocurrency verification process can be quite frustrating. You may have to choose a strong password, choose from endless security questions, scan your documents, and upload pictures too. Each step requires a verification process and can result in days of delay at a time. Delay can be caused if the employees are manually checking each entry.
The worst-case scenario would be that the customer’s application would be rejected even after the long sign-up process. This can surely kill the enthusiasm of the customer, and they may never even attempt to sign-up again.
Similar to any other form of digital technology, cryptocurrency also has its fair share of security threats. There have been numerous cases in which cryptocurrency exchanges get hacked, and funds are lost. Due to the lack of regulations from the concerned authority, investors could lose their money without much of an explanation.
Therefore, before you invest, you must carefully go through the terms and conditions and be careful of any external attacks. However, more recently, there have been laws put into place, which make the future of digital currencies more promising. The lack of regulation in this sector is keeping a lot of investors at bay. If this aspect is sorted, a mass conversion to this form of currency can be expected.
Cryptocurrency, such as Bitcoin, has also seen criminal association with its name. Bitcoin is known to be one of the most popular forms of payment for criminals who were part of ransomware attacks back in 2017. Such incidents have caused a dent in the reputation of digital currencies.
The identity verification technology is a ray of hope for the cryptocurrency industry. This technology can help those businesses who are dealing with digital currency to provide their customers with a thorough identity verification process and to make the process convenient too. Users no longer have to enter their details to prove their identity. They can simply scan their faces through biometric verification and confirm their identity to the system.
The COVID-19 pandemic has also made banks review their business structure. There are very few banks that are still practicing face-to-face account set-up. Several tools have made cryptocurrency exchanges simple. The document verification process is now faster and requires only a few clicks. Customers are no longer required to wait for days for their documents to be verified.
It is the responsibility of those people who are working in the cryptocurrency industry to ensure that their customers go through a fast and pain-free process. It is also the ethical responsibility of cryptocurrency providers to ensure security and make the process safe. Once the business-client relationship starts on the right foot, the digital currency world is bound to grow bigger in the future.
The difficult verification process is not the only reason why cryptocurrency might be difficult to adopt. It might become difficult to change the mindset of people and convince them to adopt digital currencies. This is also a big reason why this form of currency is not being use by the masses. This technology might pick up the pace once the cryptocurrency providers promise faster and more sustainable solutions to digital currency exchange.
Shaheryar provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for Shireen Inc.
The post Why Cryptocurrency Exchanges Need Better Identity Verification? appeared first on Cryptoverze.
Author: By TeamMMG
Uniswap Sees 40% Liquidity Plummet As Incentives Dry Up
Uniswap isn’t going through a good stretch, sad as it is. One of the world’s biggest decentralized exchanges (DEXs) has seen a 38% plummet in the total value of assets locked within it. This comes after its UNI liquidity rewards program ended on the 17th of November, 2020, and no clear plan could be made for the future.
SushiSwap, the vampire clone of Uniswap, has managed to double its TVL, in turn, thanks to an aggressive campaign to boost its own liquidity.
As it stands now, Uniswap has seen a 43% drop in total value locked (TVL), coming just after the protocol managed to record a new all-time-high just three days ago, recording an impressive $3.07 Billion TVL. As it stands now, the number is dropping, and dropping fast, sitting at a precarious $1.75 billion and dropping.
With Uniswap’s staggering decline in liquidity, token holders have renewed their efforts in voting for a new governance proposal. This proposal, in particular, aims to reinstate the reward liquidity providers get, mainly in UNI tokens.
Cooper Turley, coming from the Audius crypto-powered music streaming platform, was the man who made the new proposal. The proposal in question will see to it that stakers will only get half of the UNI rewards that they had gotten with the previous program, essentially enacting a quick-and-dirty halving event.
What this means is the USDC/ETH, WTBC/ETH, DAI/ETH, and USDT/ETH pools, which had 2.5 million UNI tokens distributed each month, will now only see a distribution of 1.25 million UNI for each pool every two months.
This would equate to a total of 10 million tokens, which is around 4.6% of the total circulating supply of UNI at the moment.
The first step in the process of community voting is a so-called “Snapshot poll,” which needs to receive 25,000 votes for it within three days. Afterward, a secondary poll is made, a so-called “consensus check,” which requires a minimum of double the voting quorum within five days to come in effect.
As a result, the proposal needs 50,000 votes for it within five days, but even then, it won’t pull through. Audius will have its proposition only become a fully-fledged “governance proposal” after 75,000 votes, in total, at a minimum.
From there, this same proposal needs a minimum of 40 million votes for it in order to be completely implemented. Decentralized Democracy at its finest, if a tad slow.
It should be noted that SushiSwap, the biggest rival DEX of Uniswap, was quick to unveil its new incentive program. This occurred within the same day as the new proposal was made at Uniswap.
1) Dear guests,
We are happy to reveal our improved permanent Menu a thread for our valued LP. pic.twitter.com/m5cy93txbD
— SushiChef (@SushiSwap) November 16, 2020
SushiSwap’s new pairings are exactly the pairings that Uniswap had stopped providing incentives for. This incentive structure cheekily replaced SushiSwap’s previous incentive structure, which was a revolving “Menu of the Week” system.
Author: By TeamMMG
Crypto exchange crackdown, bond on hold: Blockheads · TechNode
A government crackdown on cryptocurrency exchanges continues to wash over China’s crypto industry. A promised issuance of blockchain-based bonds by one of China’s big four banks was indefinitely postponed. The government reveals more numbers on the digital yuan rollout.
The world of blockchain moves fast, and nowhere does it move faster than China. Here’s what you need to know about China’s block-world in the week of Nov. 11-17.
On Wednesday, $300 million worth of bitcoins moved from crypto exchange Huobi to Binance, following rumors that Huobi’s COO is missing while being investigated by the Chinese government. (Coindesk)
Rumors that Huobi COO, Zhu Jiawei, had been arrested began circulating on Chinese social media on Nov. 2.
Huobi denied the allegations, but Zhu’s whereabouts are still unclear.
The fact that Xu Mingxing, one of the co-founders of crypto exchange Okex, had been arrested has only intensified speculation that Zhu is also under arrest.
On Nov. 3, another $400 million moved from Huobi to Binance, this time in the form of stablecoin Tether.
Another crypto exchange, Token Better, said in a Weibo post on Nov. 9 that it was under investigation by Sichuan authorities.
Crypto miners are having trouble paying electricity bills, as the crackdown on crypto expands to the mining industry. Many have had their bank cards frozen by authorities and are unable to pay for electricity, without which they cannot operate their mining rigs.
About 74% of miners have been affected by the “frozen card tide,” an informal survey by crypto blogger Colin Wu found. (WuBlockchain, in Chinese)
On Wednesday, Malaysian digital asset exchange Fusang announced it would be issuing $3 billion worth of blockchain-based bonds in collaboration with China Construction Bank. The bonds could be purchased using bitcoins, among other forms of currency, and would mature in February 2021.
It would be the first time that a Chinese bank issued blockchain-based bonds, and the crypto world was alight with excitement.
On Friday, CCB clarified that it was not issuing the bonds, but was merely a sponsor, and that it would not be accepting bitcoins in exchange for the debt.
On the same day, Fusang said it would postpone the bond issuance without specifying why or when the bonds would eventually become available. (The Block)
The digital yuan is in use in more than 6,700 locations around China, including transportation, government services, restaurants, and shops.
Transactions worth RMB 8.76 million ($1.33 million) using digital yuan were processed during a red envelope pilot program in Shenzhen. The digital currency has been used for RMB 1.1 billion in transactions in total across pilots nationwide.
The People’s Bank of China Digital Currency Institute has reached strategic agreements with Didi and JD.com, the article said, but there were no further details. (People’s Daily Finance, in Chinese)
Author: Eliza Gkritsi