Kana Labs DeFi Product Suite — A Huge Step Towards DeFi Mass Adoption and Web3 Onboarding
In today’s global market scape, both the cryptocurrencies and blockchain market account for multi-billion dollar industries. But, having attained and sustained its current market value, the industry is at a precipice. Given the large fan following and awareness towards these two technologies, all techies and enthusiasts have already come abroad and are active in the industry and communities surrounding these two technologies which are commonly addressed as Web3.
Everyone believes that the next major step in today’s online and internet-oriented world currently called Web2, is the migration towards Web3 space. Web2 helped facilitate the mass adoption of the Internet by simplifying the technical process and centralising data storage. This helped improve the speed of the internet while providing internet services at very low cost (super cheap) which helped bring the internet to every single individual and small-time business rather than the internet being limited to a select group of people and organisations.
While this happened, it caused various security risks and vulnerabilities as anyone with a certain skill set and knowledge was able to piggyback on centralised data storage to steal money online or steal personal information and data via hacking and phishing resulting in ownership and privacy issues. With the advent of blockchain technology and the Web3 revolution, we are now looking to provide users with improved security, better privacy and full control/ownership of their data and assets. When blockchain technology gains mass adoption, cryptocurrencies by default are expected to become a mainstay and widely accepted form of currency/financial asset.
But, there is one thing that stood in the way of such mass adoption — fragmented liquidity owing to a lack of proper cross-chain communication solutions. Put in mundane words, there exist numerous blockchain networks with their own tokens in today’s market similar to different countries with their own currencies. But the market lacks a proper service/solution that can bring about a free flow of tokens between these blockchains while currencies of different countries can be easily used anywhere and exchanged for a different currency using payment solutions such as Visa and Mastercard.
Such transactions in the cryptocurrency market can only happen when there is a service that is capable of offering true on-chain cross-chain communications. In our previous article, we explained how Kana Labs has managed to achieve such a true cross-chain communication using our Web3 middleware toolkit. What this means to an end user, when watered down to a simple level is the true flow and exchange of tokens and digital assets between different blockchain networks regardless of their background (EVM/Non-EVM), core architecture and coding language etc.
Kana Labs DeFi product suite has two key products that will help push forward and revolutionise the mass adoption and usage of blockchain technology and cryptocurrencies. The first has already been mentioned above — the “Web3 middleware toolkit”, while the other product is our “Smart Wallet SDK” which has been created adhering to account abstraction concepts widely recognised by the community and market. When a dApp/wallet provider merges their product with our smart wallet SDK, they instantly gain access to features such as Social media login, two-factor authentication, password recovery, transaction batching/bundling and sponsored transactions etc., What this means for an end user is that they do not have to learn about how to navigate the crypto and blockchain ecosystem and make transactions and perform activities similar to how they are normally performed in the Web2 space.
Applied in the real world, any business organisation or shop or individuals and social entities who wish to migrate to Web3 space from Web2 can get a complete, hassle-free and comprehensive migratory experience when they choose to use our DeFi products. The best results are obtained when both our products are used together as one.
Be it a retail shop, e-commerce website, decentralized financial service provider or a cable/electricity/gas/water service provider, a government department collecting tax/fees using our smart wallet in their front end will give their customers an experience very similar to what they offer in their official application right from the creation of account and app login to payment and check out.
Additionally, when they use our Web3 middleware toolkit as the base for their application’s front end, they gain instant access to multiple blockchain networks. This would mean that a user can make payment using any token in their possession while the dApp owner (individual/business entity) will receive their payment in a token of their choice/preference. This is very similar to how users in Web2 space are able to make payments using any fiat currency from any country in the world (INR/AUD/CAD) while the receiver on the other end gets the payment in the form of desired/local currency (USD/EURO) facilitated by the payment services providers like Visa and Mastercard.
By addressing the needs of Web2 participants on multiple fronts from simplifying their onboarding process in the front end and making it easier for them to use their digital assets in the back end, the Kana Labs DeFi product suite provides a complete and comprehensive Web3 migration solution. Also, the number of supported blockchain networks in our product suite will continue to grow constantly in the future.
This way, those who are new in the industry and lack knowledge of blockchain/cryptocurrency and those who are experienced in the industry but are worried about the expenses involved in migration and lifecycle of blockchain network (if the selected blockchain network will have proper liquidity and large user base or if there is a chance for blockchain to shutdown) can choose to migrate without any worries as we take care of both your lack of technical expertise (abstracting it away) while providing you with endless liquidity and wide range of supported tokens (addressing the liquidity concerns). We believe that with such a comprehensive DeFI product suite, Kana Labs is able to help push forward the migration from Web2 to Web3 and help the blockchain and cryptocurrency industry fly higher from its current precipice.
