Kinto is an Arbitrum Layer 2 rollup, built to fast-track the shift towards an on-chain financial ecosystem via a permissionless KYC/AML framework and native account abstraction, addressing the primary challenges of compliance and user experience that often hinder widespread adoption in the financial blockchain space.
The blockchain ecosystem, replete with its revolutionary potential, is simultaneously grappling with a critical hurdle — user experience (UX). For those who can truly impact the web3 space, be they high net-worth individuals, family offices, sovereign wealth funds, or hedge fund managers, the complexity of on-chain interactions poses a daunting barrier.
Despite wielding significant capital leverage, these influential players find blockchain interactions cumbersome and unsuitable, hindering widespread adoption.
As such, today’s blockchain interfaces often deter the very individuals capable of catapulting the industry forward. The uninitiated find themselves at odds with a system that is fundamentally alien, detracting from the allure of blockchain’s decentralized promise. This, coupled with the inherent risks of the crypto space, constitutes a major choke point for adoption.
As the industry stands at the cusp of transformation, Kinto, the pioneering KYC integrated Layer 2 network tailored for the financial sector, is heeding the urgent call for a user-centric approach to blockchain interfaces.
Crypto’s Labyrinth
Any newcomer to crypto must go through a painful rite of passage before interacting with a Web3 application, which includes setting up a web3 wallet, often via a browser plugin.
Before setting up their browser extension with a Web3 wallet, users decide which wallet to choose. The market offers numerous wallets with unique features, security measures, and compatibility with different networks. This step demands research and a clear understanding of personal security needs and investment goals.
Once a wallet is chosen, the account creation process involves following steps that are critical for security, such as safely storing seed phrases and private keys. For such accounts, there are no existing account recovery methods if the private keys or seed phrases are lost.
With a wallet set up, users must next learn how to transfer funds into it in order to pay for the gas fees associated with interacting with blockchain networks by signing transactions. This generally involves purchasing cryptocurrency through central exchanges or via peer-to-peer platforms and requires an understanding of the nuances of network fees to ensure successful fund transfers.
Only when a wallet is funded may a user engage with decentralized applications, which require them to know how to connect their wallets to these apps, interact with their interfaces, and be capable of understanding the ramifications of the transactions they sign.
The user journey to crypto ownership is anything but straightforward.
The intricate steps delineated above, while fundamental, underscore the obstacles that currently hinder the readiness of such systems for mass adoption. Beyond these initial hurdles, the deeper entanglement of Web3 platforms, including DeFi networks, non-fungible tokens (NFTs) trading markets, and decentralized autonomous organizations (DAOs), all pose further challenges that can be daunting for the average user to navigate without extensive education and experience.
Account Abstraction as a Catalyst for Change
The appeal of simplicity over complexity is universal. Account abstraction is a traditional mechanism that embodies this ethos via a shift toward interconnected ‘invisible tech’ — the discreet, underlying systems, protocols, and technology that streamline user interaction by simplifying the sophistication of entry and engagement.
We can see examples of this mechanism playing out in the modern tech world. For instance, from the humble beginnings of dial modems to today’s widespread service providers, an industry persists around abstracting the difficulty of user account management for software systems and support with hardware setup, so that people can simply make handy the tools and services that use the web as an underlying connective tissue.
Within the sphere of services built on the internet itself, Robinhood is a fine example of a fintech company that democratized stock trading by way of intuitive design–obfuscating the underlying nuances of trading stocks to the end-user with a simplified application interface for stock and crypto portfolio curation, management, and trading.
Robinhood’s ascent in the trading world wasn’t due to novel trading features; instead, it was their user-friendly design that dismantled barriers, inviting a wider array of retail investors previously sidelined by more arcane broker-dealers.
Compared to more archaic stock trading methods, Robinhood revolutionized retail trading via a less sophisticated mobile interphase, enabling a new wave of consumers to hit the markets.
As with Robinhood, when effectively leveraged, account abstraction has the potential to elevate the Web3 ecosystem beyond its natal stage by significantly enhancing accessibility. This transition is not just a matter of convenience; it’s an essential step towards inclusivity and expansion.
Building Kinto For The Masses
To properly harness the potential of adoption, Kinto has worked towards seamless and intuitive user interfaces that maximize the knowledge of Web2 practices while building familiarity across the Web3 protocols in which the Layer 2 network dwells.
In Kinto’s beta phase, the platform is committed to demystifying the initial setup for newcomers. It offers straightforward guidance on wallet creation through easy-to-follow, form-based menus. This approach ensures that users grasp the necessary Web3 protocols with ease, aided by comprehensive tutorials that accompany each step of their journey.
As Kinto gears up for its mainnet launch**, we’re building towards a more streamlined experience where the complexities of Web3 will operate in the background,** providing a hassle-free interaction akin to Web2 experiences.
Meanwhile, seasoned crypto enthusiasts will have the option to engage with more granular Web3 functionalities and maintain granular control, if they choose. This dual-track system is designed to cater to both the blockchain savvy and the newcomers, ensuring that Kinto’s network is accessible and adaptable to all levels of user sophistication.
By building Kinto’s infrastructure with a core understanding of the value and necessity of account abstraction, we offer a gateway that allows influential market players to engage with blockchain technology without the need to navigate the labyrinth of Web3 accounts and custody.
Ready to learn more about how Kinto is building for mass adoption? Get involved in the Kinto community by joining the discussion in our Discord group, follow us on Twitter, and check out our blog.