A Brief Analysis of the New L1 Public Chain XION: A Catalyst for Large-Scale Adoption of Web3?

Author: XION World

Compiled by: Cullen, Bai Ze Research Institute

"If everyone is seeking the benefits of decentralized ownership, then why is the Web3 industry still struggling to find a path to mass adoption?"

For years, the potential of Web3 has been discussed, but in terms of user adoption, we seem to have only scratched the surface. Currently, there are two challenges to mainstream adoption of Web3 --- --- functional barriers and cultural barriers. The emergence of the new L1 public chain XION aims to address these two issues. Let’s comprehensively understand XION's vision and how it helps Web3 achieve mass adoption through this article.

XION: An L1 Network Dedicated to Abstracting Crypto Complexity

When it comes to XION, we must mention its developer, Burnt.

Burnt's journey in Web3 began with the burning of a Banksy artwork. In March 2021, the Twitter account BurntBanksy live-streamed the burning of Banksy's artwork "Morons (White)" and issued it as an NFT, aiming to transfer the value of physical artwork to NFTs. The purpose of this act was to inspire more artists to explore NFTs. In the following year, Burnt focused on creating no-code products for creators, such as Burnt Finance and early NFT standards.

During this process, Burnt witnessed NFTs hitting a bottleneck, as the complexity of the Web3 industry hindered mass adoption. "Keeping real users at bay while making us feel superior in a niche" is certainly not the endpoint of Web3.

Therefore, Burnt built the L1 blockchain XION based on Cosmos to overcome the scalability limitations of adoption caused by cryptographic technology. XION achieves a frictionless user experience while retaining the core features of Web3 --- --- decentralization, transparency, verifiable ownership, and more.

XION's goal is to help Web3 achieve mass adoption by addressing the functional and cultural barriers to optimization. By focusing on user experience, accessibility, and scalability, XION aims to create an ecosystem that supports developers and users, thereby unlocking the full potential of blockchain technology.

Additionally, the Inter-Blockchain Communication (IBC) protocol of Cosmos allows XION, its ecosystem, and applications to quickly integrate with other application chains and their related applications. For example, if a product requires private user states, XION can connect to the Secret network. If a product requires DeFi, XION can connect to the Injective chain and Osmosis chain. For fiat assets and non-Cosmos ecosystem assets, Cosmos has Axelar chain and Noble chain, among others. Cosmos's "chain interconnectivity" enables XION to immediately offer more functionalities to users and paves the way for new use cases for developers on XION.

Regarding the innovations brought by XION in infrastructure and functionality, perhaps we can return to the main topic of this article and find answers to the question, "What barriers does Web3 face for mass adoption?"

Web3 Barrier 1: Complex and Unfriendly Functionality for New Users

For first-time users of Web3 applications, it may take up to 15 complex steps and several days to successfully complete an interaction. From figuring out which wallet app to download to having the necessary funds to submit a transaction, a user dropout rate of up to 95% is not surprising. With the surge of new L1 blockchains, new users will find it even harder to cope. These issues have become a breeding ground for scammers who steal assets from new users, further deepening the mainstream world's negative perception of the Web3 industry.

While user education can help make the process of first-time use of Web3 applications more approachable, it is clear that it is not a solution in itself. Just like Web2, Web3 should not require new users to understand cryptographic knowledge before they can benefit from it.

How Does XION Address the Above Issues?

XION can be described as a ground-up built L1 that has comprehensively optimized the user experience.

Onboarding Process Doesn't Have to Be CEX → Onchain

Currently, new users typically need more than 15 steps to purchase goods on-chain. First, they must set up an on-chain wallet, then register with a centralized exchange (CEX), verify their identity, transfer funds from the CEX to the on-chain wallet, exchange for the correct tokens in a DEX, and so on, before they can make a purchase.

However, on XION, users can directly purchase on-chain goods using credit/debit cards, with an authorization rate of over 95%, immediately covering approximately 6 billion credit/debit card holders. This not only eliminates the complex process for users but also provides a purchasing experience truly similar to Web2 e-commerce websites.

No Gas Fees

Another major barrier to new user adoption is gas fees, as this forces them to hold the native token of a chain to conduct transactions.

XION completely eliminates this barrier with gasless transactions, allowing new users to immediately start interacting with on-chain applications.

Abstracting Wallet Complexity

It is well-known that the complexity of traditional crypto wallets has led to a drop in user adoption by over 95%. They require users to download browser plugins, go through complex setups, and prompt users to securely store their mnemonic phrases with pop-ups for every transaction, which prevents most non-technical/professional users from engaging.

To address this issue, XION fully abstracts the entire on-chain crypto wallet, requiring no downloads of plugins. New users only need to create an MPC wallet using their email to seamlessly interact with applications. Meanwhile, crypto-native users can interact with XION using any wallet of their choice. XION caters to the needs of all audiences.

Mobile Support

In many ways, supporting better operations on mobile is one of the true pathways to mass adoption of Web3.

However, many current crypto wallets cannot switch freely between PC and mobile, requiring users to re-import their mnemonic phrases when changing devices, and the UI/UX performance of wallet app browsers is often very poor.

XION ensures mobile support through the aforementioned "abstracting wallet complexity." Additionally, it allows for the separation of login and assets, creating a secure way for users to interact with new applications without putting their assets at risk. Essentially, it allows users to access the XION ecosystem safely anytime and anywhere.

Pricing in USDC

It is well-known that there are thousands of highly volatile cryptocurrencies in the Web3 industry, making it very confusing for new users to understand the pricing of assets/products.

With the support of USDC issuer Circle, XION will become the first blockchain to use USDC as its primary transaction currency. All products built on XION will be priced in USDC, allowing new users to seamlessly use a familiar fiat currency pricing format.

Web3 Barrier 2: Not a "Native," Difficult to Understand Terminology?

In addition to functional barriers, Web3 mass adoption also faces cultural barriers.

Imagine your first encounter with crypto; doesn’t it feel like entering a new universe? It is filled with unfamiliar terminology, confusing ecosystems/applications/tokens, and complex user experiences. Moreover, the mainstream world's perception of cryptocurrencies is mired in the misdeeds of bad actors and high-profile scam news.

How Does XION Address the Above Issues?

From the very beginning, XION was designed with the core principle of abstracting the complexity of cryptographic technology.

Abstracting Terminology

To make it easier for new users to use Web3, either complex terminology should be replaced with the most basic, easily understandable words, or they should be completely abstracted.

XION is committed to simplifying and removing technical jargon and industry-specific terms, which is crucial for enhancing user experience and achieving broader adoption.

Building Credibility

Given the mainstream world's general skepticism towards cryptocurrencies, establishing trust is one of the most important factors in attracting a wide audience. This is also why XION has formed strategic partnerships with many well-known companies in both Web2 and Web3 fields. For example, well-known Web3 companies/investors like Animoca and Circle Ventures have invested in XION, collaborating with Web2 giants like Checkout.com, Stytch, and Stripe.

Eliminating User Education

XION's unique infrastructure eliminates all complexities for users, playing a key role not only in removing functional barriers but also in addressing cultural barriers. For example, whether it’s gasless transactions, abstracting wallet complexity, or allowing direct purchases of on-chain goods with bank cards, all these significantly reduce the complexity of interactions, eliminating the traditional education required for users to interact with applications.

Conclusion

Creating a robust and practical infrastructure to achieve innovative user experiences is just a small part of the challenges currently facing Web3. To truly usher in mass adoption, we must also build an experience layer for user interactions, ensuring it is as intuitive and popular as Web2 platforms.

XION is poised to become a catalyst for Web3 mass adoption, with a mission that goes beyond mere technological advancement; it lays the foundation for a "Web3 cultural revolution."