Binance CTO's Blueprint to Mainstream Blockchain in Everyday Transactions User experiences differ when engaging with traditional applications versus blockchain-based platforms, primarily due to the unique characteristics of blockchain technology which includes decentralised networks, cryptographic keys, and smart contracts

In the cryptocurrency space, virtually 100 per cent of transactions are recorded on blockchains. On the contrary, the adoption of blockchain for transaction recording is still developing in financial systems and business applications. Leading technological initiatives at Binance, the world's largest cryptocurrency exchange by trade volume with 240 million global users, Rohit Wad is optimistic of benefits sprouting from transaction recordings beyond crypto.

"The coding of (non-crypto) records on a trusted blockchain can revolutionize transactions and transaction monitoring. That's what I'm excited about," shared Rohit Wad, Chief Technology Officer, Binance with Entrepreneur India at the sidelines of the Binance Blockchain Week 2024.

He feels India can be a good example, courtesy of how it proactively adopted technology, especially in the telecom space. "Back in the day, people didn't have landlines in India. They had to go to booths to make calls. So when cellular phones came, the country was immediately on board," he shared. While there is a strong interest among India's youth in Web3 and cryptocurrency, there's less awareness about transactions centred on the blockchain.

User Experience (UX) and Accessibility

Wad further urges developers to simplify the user experience (UX) while maintaining security measures and making the technology invisible yet integral that feels natural, secure, and easy for everyone. "If you have to know that a transaction is on a blockchain, then something's wrong," he shared.

In June 2024, Binance.US- a U.S. regulations-adhering subsidiary of Binance- unveiled a fresh look for its mobile application to make it "easier for customers to navigate the world of crypto." Blockchain technology is often surrounded by technical jargon and inefficient UX design. User experiences differ when engaging with traditional applications versus blockchain-based platforms, primarily due to the unique characteristics of blockchain technology which includes decentralised networks, cryptographic keys, and smart contracts.

"You shouldn't have to know the details of the blockchain. If you get a certificate and enter it on a website, it should guarantee authenticity. That's it. It should reach that level of simplicity and we are not there yet. And that's why you don't see as much interest in transactions recorded on the blockchain." Effective UX design aims to simplify these concepts, making them more accessible and understandable.

Security as a Core Priority

Wad is putting security and convenience in top gear amid surging cyber security concerns and attacks. "If you have the world's best security, but the consumers aren't using it, then it's useless," he shared. With over USD 1.38 billion worth of crypto being hacked as of June 24, 2024, according to blockchain researchers TRM Labs, Binance is betting on multi-factor authentication (MFA) and user awareness.

"We are pushing more people to adopt multi-factor authentication and trying to teach people how not to fall for malicious bait," he added. Binance employs MFA (through SMS or WhatsApp) and uses artificial intelligence (AI) to detect abnormal user patterns. Hacker patterns differ from standard user patterns. "If something looks out of the ordinary, accounts cannot do any withdrawals anymore until you authenticate with us," said Wad. In case of hackers processing a big withdrawal, security checks are enhanced with transactions being halted and accounts getting blocked.

"We interrupt you during risky operations and don't during normal operations," he said. Machine Learning (ML) scrupulously detects activities which agents can't because "It's seen thousands of these things happen." As cyber threats evolve, the market for AI-driven security solutions in cryptocurrency is expected to grow significantly, driven by increasing demand for safer digital asset management practices. The exchange recovered over USD 73 million in user funds from external hacks as of July 31, 2024.

With Binance's multi-signature (multi-sig) wallet giving users two of the three signatures, Wad is confident. "We believe that our multi-sig systems are the best in the world, so there is no need to work with someone else." Being sanguine in its multi-sig offering, the CTO feels "there is no need to develop a hardware wallet at the moment."

Feedback and future

In 2024, the exchange realised that customers valued speed. "They told us, we listened, and we are now, in terms of order placement and APIs, the fastest in the industry." How to simplify the product for users who don't trade was another task. "The product is geared towards trading. How can we have these twin goals of onboarding 200 million people who want to enjoy other products and not trade, while keeping the traders happy?" The answer lies in UX design and Wad and the team are experimenting with the same.

Binance allows for off-chain transactions but has on-chain withdrawals. Typically, people face issues with speed and gas fees. For the uninitiated, higher gas fees can lead to faster processing. "You want the users to have a rapid experience, but don't want them to overpay. And so those are the things we are experimenting with," he added.

Lastly, while global Web3 interest has waned in favour of AI, Wad is optimistic about India's role in incubating Web3 projects. "India, of all countries, has the technological infrastructure, the right engineering talent, and the right venture capital models and the entire thing," he concluded.