Until recently, cryptocurrencies were primarily associated with trading, but now, crypto startup founders are exploring new avenues by expanding their services. These startups are looking to offer a diverse range of offerings, including gaming, social applications, decentralized financial services, and more. The aim is to create scalable protocols that can support multiple transactions, making crypto relevant for micro transactions and beyond.
Building Scalable Protocols
Founders like Nischal Shetty of WazirX are leading the charge in building scalable protocols. Shetty is developing Shardeum, a blockchain-based protocol that aims to process 100,000 transactions per second, significantly surpassing the capacity of traditional blockchain-based protocols which can handle around 40-50 transactions per second. Such scalability opens up possibilities for micro transactions, gaming applications, social applications, and other services.
A Gateway to Web3 and DeFi
Crypto companies are also building gateways to Web3, the future of the global economy, to provide easy access to decentralized finance (DeFi) applications. CoinDCX has developed Okto, a decentralized wallet that enables users to access DeFi applications from around the world. The goal is to increase awareness and understanding of tokens, DeFi, and other blockchain-based applications.
Overcoming Regulatory Challenges
With strict regulatory charges on crypto trading in India, such as a 1% tax deducted at source and 30% tax on virtual digital assets, the trading community has become cautious. To compensate for the lost business, crypto platforms are diversifying their services and aiming to create a comprehensive crypto ecosystem.
Focusing on Mass Adoption
The shift in focus from trading to services is driven by a desire for mass adoption. Startup founders believe that committed users who benefit from these services will be more likely to stay engaged and committed to the crypto space, leading to sustained growth.
Valuation Challenges
The cryptocurrency market’s slowdown has raised questions about the valuation of crypto startups. The decline in high-frequency trading and staking revenues has necessitated diversification into other financial services as a viable option for growth.
Despite the challenges, crypto startups like WazirX and CoinDCX remain optimistic, banking on their strong financial positions to build for the future and make crypto services more accessible to the masses. The future lies in their ability to expand services, create innovative gateways, and drive mass adoption in the ever-evolving world of cryptocurrencies.
