In a July 5, 2022 twitter thread, the CEO of Crypto.com revisited the importance of scalability for a blockchain. Taking the example of his own strategy, Kris Marszalek shows that this tool is a powerful weapon in a crypto company’s risk management arsenal.
What is scalability?
Simply put, the scalability of a blockchain mainly relates 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 of throughput, ie it can only process seven transactions per second (TPS), which is not enough for real life use (compared to VISA, which can reach 24,000 GST). The speed of completion (to confirm the validity of a purchase) is also a difficulty related to scalability.
What is crypto.com?
It is one of the most important exchanges today. The platform is suitable for the novice and allows the buying, selling, trading and spending of cryptocurrencies. In particular, the Crypto.com application offers its users the opportunity to buy more than 100 cryptocurrencies at a real cost, earn high interest on their cryptocurrencies or even manage their Crypto.com Visa card and thus make payments in cryptocurrencies with ease . † By using Crypto.com, users can maintain full control over their private keys.
- Specifically, the exchange has the following features:
- The Crypto.com app is downloaded by approximately 10 million users worldwide on the Google Play Store;
- The ability to obtain a Visa Metal card;
- Deposit cryptocurrencies to get an instant loan;
- App users can buy or sell their cryptos directly on the Crypto.com Exchange.
Scalability: the crypto.com tool against the bear market
Last year, crypto.com started a race for scalability as it pushed hard to maximize users and revenue amid bullish market conditions. According to Kris Marszalek, this strategy was justified by anticipating the bear market. Knowing that there was a risk of a slowdown in activity and therefore revenues to fall, the scalability of the crypto.com blockchain caused relatively high lows compared to the crypto market in general.
Crypto.com has recently come under fire for making difficult and unpopular decisions for its users. The trading platform PDF nevertheless believes that these were the right decisions to make. Thanks to this strategy, he explains that the company has been able to maintain its policy of withdrawals and no new restrictions have been introduced.
Secure Twitter, he claims that this policy will lead crypto.com to the Top 3 or Top 5 exchanges in terms of annual revenue worldwide. He adds that operating a trusted, secure and regulated platform with global reach is expensive and few have achieved the scalability necessary to support such an ambition.
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Against the angelic spirit of the intercessors of the current monetary system, I am against DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.