The facilitation of peer to peer transactions is the primary use case for blockchain. Many businesses have found it profitable cutting down the middleman, along with other benefits.
Among other benefits that appeal to businessmen is the drastic cutting down of fees when sending funds to one another and on the exchanges. For instance, on September 5th, someone paid $700 fee after sending $1 billion worth of bitcoin. And yet some have made evaluations that the fee was 20x more than needed.
Privacy Vs Better User Experience
Privacy is yet another benefit that users enjoy. A blockchain ledger may be public but it’s also anonymous. Using a non-custodial wallet lets you store your funds in your computer when you can easily access them.
The irony is that, despite the benefits that come with the non-custodial solutions, custodial wallets like Binance and Coinbase have attracted the most users, the past few years. Doesn’t it contradict all the benefits blockchain has to offer?
It does and users didn’t at first care about anything but potential profits. But now, the reality is that centralized offerings have smoother user experiences and better user interfaces. Plus, their order matching engines are faster than decentralized networks besides having a better customer engagement.
The hard downside of the centralized custodial solutions is the constant attacks due to the fact that they are a honeypot for hackers. Investors have lost billions of funds. It has brought back non-custodial wallet solutions to where they should have been in the first place.
A Learning Community
After the loss of the billions of funds worth in hacking and stolen funds, the community has been forced to learn. We are now witnessing a positive shift in the products being used by the community. The shift takes advantages of the financial upsides and privacy advantages non-custodial products are offering.
Blockchain has two main businesses that users like to engage with: exchanges and wallets. By opting for a custodial offering you trust your funds to be held by the company. On the other hand non-custodial offering mean you control your own funds. That gives you greater privacy and cheaper transactions.
Non-custodial solutions felt clunky when using, had horrible interfaces and had no support. But that has changed. We can now see sleek and industry-leading support non-custodial solutions like the BRD wallet and DEX decentralized exchange.
Integration Of Businesses
To survive, wallets such as the BRD offer to integrate third parties and offer trading functionality while enabling users to sell and buy bitcoin with their bank accounts and credit cards.
Adding these trading features provides enough revenue to keep them alive and does not force users with the KYC/AML protocols. You can download and use non-custodial wallets without signup.
The use of non-custodial solutions has increased awareness. And that’s the bigger picture. Wallets on the other hand offer more competitive products and services that can compete with custodial offerings. It will be interesting to note how the two businesses evolve.