Crypto infrastructure provider Blockdaemon and Bitcoin sidechain VerifiedX said they are partnering to simplify everyday crypto usage for non-technical users.
The move, which involves generating revenue by sending money overseas, will see the same staking and blockchain infrastructure that Blockdaemon provides to banks and asset managers integrated into VerifiedX’s two consumer applications: self-custody wallet Switchblade and social payments platform Butterfly, according to an announcement shared with CoinDesk on Thursday.
The experience is designed to feel closer to Paypal’s (PYPL) Venmo or Block’s (XYZ) Cash App social payment apps than a traditional Web3 workflow. Users can earn yield on Bitcoin (BTC) and stablecoins, borrow against their holdings, and access on-chain credit markets without parking funds on an exchange, dealing with custodians, or juggling seed phrases (the long stream of random words that users need to save and recover their assets), the companies said.
Blockdaemon provides the technical backbone, including node operations, staking systems and liquidity management, while VerifiedX manages the user experience, including payments, merchant transactions and simple asset transfers. The combination aims to offer self-holding DeFi functionality to people who are not interested in navigating dashboards or connecting wallets on-chain.
Crypto/DeFi/Web3 platforms often struggle to gain widespread adoption, primarily because their user experience is often clunky, complex, and intimidating to the average user. due to unfamiliar concepts such as wallets and seed phrases, a process that offers a steep learning curve and high risk of irreversible error.
This highlights the need for these platforms to emulate the simplicity of popular fintech apps, which hide the technical complexities of sending, receiving and managing the user’s money and simplify the process with features such as email and password logins and two-factor authentication.
