Key Problem Summary

Threat to the Future of Blockchain

• Blockchain is an open technology by default, but there is a veil of darkness cast over the onchain activity of African crypto companies because the digital asset ecosystem in Africa runs on table stakes centralized systems.

• It’s an odd irony; in spite of the explosive growth of Web3, traditional finance players in Africa looking to offer or plugin Web3 services are forced to use centralized custodians by default, creating operational complexities and regulatory risks/hurdles.

• Existing Web2 players face a steep climb when it comes to setting plugging into crypto Right now; if a team is looking to offer digital asset services, they have to take very complex things into consideration:

• Customers will always demand a simplified user interface, forcing any such solution to the custody of the digital assets for them, imposing a regulatory burden and creating a technological barrier.

• There are potential liabilities that firms have to take into consideration when offering crypto due to risk management policies and lack of access to efficient fiat on and off plugins.

• Most Web2 enterprises struggle to make sense of how best to plug it into their existing flow without disrupting UX because Web3 security/UX is complex and runs on table-stakes infrastructure.