The cryptocurrency industry has seen massive amounts of progress over the past year and a half. In fact, 2020 and the first half of 2021 perhaps the most productive period that the industry has had in its entire existence. A lot of it probably has to do with COVID-19, which spread throughout the world, forcing people around the globe to stay at home.
Developers used the opportunity to work more on various crypto solutions; new people joined the industry, whether as developers, traders/investors, or otherwise, which also meant greater adoption (although still no mass adoption as of yet), and more. The crypto industry saw several new trends emerging, of which DeFi (decentralized finance) and NFTs (Non-Fungible Tokens) were and still are the biggest and most successful.
Many projects saw personal advancement, and of course, let’s not forget massive bull runs that brought coins like Bitcoin, Ethereum and many others to new all-time highs (ATHs). But, with all that happening, there are still plenty of issues in the crypto industry that have yet to be solved. Finding solutions for the issues of scalability, volatility, lack of regulations, and more, is not easy. Many projects are trying to tackle one or more of these issues, and have been doing it for years now.
Some had partial success, while others did not. There are even some of the newer, younger projects that emerged specifically to try and solve some of the problems that the crypto industry is facing right now. One example is Ucoin, whose team recently explained what they are trying to achieve, what problems the crypto industry is facing, and what their personal solution to these issues are.
Ucoin Team Specified What Problems their Project Aims to Solve
Naturally, in order to understand the solutions, one must first understand the problem. So, what are the problems of the crypto industry? Some were already mentioned above, such as scalability, volatility, and the lack of regulatory clarity. However, these are only the top ones. Crypto industry also suffers from slow transaction speeds, which directly leads to the problem of high fees.
When transaction processing is slow, that means that a number of transactions will have to end up waiting in a line to be processed. So, transactions with the largest fees are likely to be processed among the first ones, since miners will choose them first. This led to the growth of the average fee, which takes more money from the traders’ pocket for transaction processing, leaving less for trading.
Then, there is the inability to use crypto as payment, difficult cross-border transactions, payment limits, low security, lack of compliance procedures in the industry, difficulties with converting crypto to fiat and vice versa, and alike.
Ucoin comes as a solution to these issues in several ways. First, it ensures that it will have low fees by ensuring fast transactions. Naturally, cross-border settlements are not an issue with blockchain, and the team also worked on increasing security and reliability of transfers.
Basically, the project aims to act as a global digital banking platform, offering full banking services, money transfers, and even bank cards. It has created its own selling platform, Ubis, where cryptocurrencies will be converted into fiat, and fiat into crypto. It has its own partners and alliances.
UCI, is backed by real assets to be managed and audited by international financial and legal entities. Simply put, the project wants to serve users globally, and that means that it needs to be approved by regulators everywhere in the world. As such, it might be able to point the way for other projects and show them how to handle themselves in a way that will make them regulatory compliant around the world.