In a twitter thread dated July 5, 2022, the CEO of Crypto.com returned to the importance of scalability for a blockchain. By taking the example of his own strategy, Kris Marszalek demonstrates that this tool is a powerful weapon in the risk management arsenal of a crypto company.
What is scalability?
Simply put, the scalability of a blockchain primarily refers to transaction speed. Currently, the transaction time of cryptocurrencies is not comparable to that of other payment methods. However, blockchain players are working on the best method to overcome this weakness.
Scalability determines the capacity of the network, including the number of nodes in the network, the number of transactions the network can process, the processing speed of the network, etc. The fact that Bitcoin is considered unscalable is mainly a consequence related to its throughput, i.e. it can only process seven transactions per second (TPS), which is not enough for use. in real life (compared to VISA, which can reach 24,000 GST). The speed of finalization (to confirm the validity of a purchase) is also a difficulty linked to scalability.
What is crypto.com?
It is one of the most important exchanges today. The platform is suitable for the beginner and allows to buy, sell, exchange and spend cryptocurrencies. The Crypto.com application notably offers its users the possibility of buying more than 100 cryptocurrencies at real cost, earning high interest on their cryptocurrencies or even managing their Crypto.com Visa card and thus easily making payments in cryptocurrencies. . By using Crypto.com, users can maintain full control of their private keys.
- The exchange has the following characteristics in particular:
- The Crypto.com app is downloaded by approximately 10 million users worldwide on the Google Play Store;
- The possibility of obtaining a Visa Metal card;
- Deposit cryptocurrencies to get an instant loan;
- App users can buy or sell their cryptos instantly on the Crypto.com Exchange.
Scalability: the crypto.com tool against the bear market
Last year, crypto.com embarked on a race for scalability while pushing hard to achieve maximum users and revenue amid bullish market conditions. According to Kris Marszalek, this strategy was justified by anticipation of the bear market. Knowing that there was a risk of a slowdown in activity and that therefore revenues would fall, the scalability of the crypto.com blockchain allowed for relatively high lows compared to the crypto market in general.
Crypto.com has recently come under fire for making tough and unpopular decisions for its users. The PDF of the trading platform nevertheless considers that these were the right decisions to make. Thanks to this strategy, he explains that the company was able to maintain its policy of withdrawals and that no new restrictions were put in place.
On Twitterhe claims that this policy will lead crypto.com to the Top 3 or Top 5 exchanges in terms of annual revenue globally. He adds that operating a trusted, secure and regulated platform with global reach is expensive and few have achieved the scalability needed to support such an ambition.
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To the angelism of the intercessors of the current monetary system, I oppose DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.