Crypto.com: The importance of scalability

In a twitter thread dated July 5, 2022, the CEO of Crypto.com returned to the importance of scalability for a blockchain. Taking the example of his own strategy, Kris Marszalek demonstrates that this tool is a powerful weapon in a cryptocurrency firm’s risk management arsenal.

What is scalability?

Simply put, the scalability of a blockchain refers primarily to transaction speed. Currently, the transaction time of cryptocurrencies is not comparable to other payment methods. However, blockchain players are working on the best method to overcome this weakness.

Scalability determines the network’s capacity, including the number of nodes in the network, the number of transactions the network can process, the network’s processing speed, etc. The fact that Bitcoin is considered unscalable is mainly a consequence related to its 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 associated with scalability.

What is crypto.com?

It is one of the most important exchanges today. The platform is suitable for beginners and provides the opportunity to buy, sell, exchange and use cryptocurrencies. In particular, the Crypto.com application allows its users to purchase more than 100 cryptocurrencies at real cost, earn high interest rates on their cryptocurrencies or even manage their Crypto.com Visa cards and thus easily make payments in cryptocurrencies. . By using Crypto.com, users can retain full control over their private keys.

  • The exchange has in particular the following characteristics:
  • The Crypto.com app is downloaded by approximately 10 million users worldwide in the Google Play Store;
  • The possibility of getting a Visa Metal card;
  • Insert cryptocurrencies to get an instant loan;
  • App users can buy or sell their cryptocurrencies instantly on the Crypto.com Exchange.

Scalability: the crypto.com tool mod bear market

Last year, crypto.com launched a race for scalability while pushing hard to achieve maximum users and earnings amid bullish market conditions. According to Kris Marszalek, this strategy was based on expectations of the bear market. Knowing that there was a risk of a slowdown in activity and that revenues would therefore fall, the scalability of the crypto.com blockchain allowed 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 PDF of the trading platform nonetheless assesses 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 introduced.

On twitter, he claims that this policy will lead crypto.com to the Top 3 or Top 5 exchanges in terms of annual turnover globally. He adds that it is expensive to operate a reliable, secure and regulated platform with global reach, and few have achieved the scalability needed to support such an ambition.

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Sami AYADI avatar

Sami AYADI

To the angelism of the proponents of the current monetary system, I am against DeFi, digital assets and the meta-verse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.

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