The variety of various stablecoin tickers and token requirements is fragmenting liquidity throughout the crypto environment and straining users with a bad experience that is expensive, technical, and lengthy, according to onchain sleuth ZachXBT.
Cross-chain bridging limitations, gas and deal charges that should be paid in the native token of the blockchain being utilized, and an absence of universal token assistance throughout exchanges are all challenges users deal with in moving stablecoins throughout the crypto environment, ZachXBT stated. He offered the copying:
” Envision you get USDPT to your Solana address however recognize your wallet does not have USDPT on the default token list. You likewise require gas, so you bridge ETH from Ethereum and wait numerous minutes, and wish to switch USDPT for USD on a central exchange.”
From there, the user might recognize that their exchange of option does not support the token or a swap on that token and is required to bridge to a various blockchain, invest more on gas charges, download another wallet or register for another exchange to perform the deal.
The absence of a smooth user experience and user-friendly interface (UI) in crypto stays among the greatest difficulties to accomplishing mass adoption and parity with Web2 and conventional monetary applications, market executives informed Cointelegraph.
Related: Visa to begin supporting stablecoins on 4 blockchains
Abstracting away the technicality: the future of stablecoins
Crypto exchanges will ultimately abstract away stablecoin tickers and provide a front-end user interface to users that just shows the fiat currency underlying the stablecoin, such as the United States dollar or British pound, according to Mert Mumtaz, CEO of remote treatment call (RPC) node service provider Helius.
The exchanges will do the heavy lifting of crosschain swaps and transfers behind the scenes, enabling users to effortlessly connect with stablecoins from any provider without the technical barriers, Mumtaz stated.
AI representatives and self-governing AI bots will likewise minimize the technical trouble of utilizing stablecoins from various providers or throughout blockchain networks by handling wallets on behalf of users, Reeve Collins, co-founder of stablecoin provider Tether, informed Cointelegraph.
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