Cryptocurrencies are back in the spotlight after a harsh crypto winter. This makes it all the more important to simplify onboarding for newcomers. That's why a Zug-based startup, Zippy, is aiming for mass appeal with its new app.
The mobile app was quietly launched a few weeks ago, but the groundwork has been laid over several years. With unique features, Zippy wants to stand out from the competition, as the two young founders explained to CVJ.CH. On the one hand, the app enables the entire cryptocurrency trading process with just a few buttons. Transfers to friends are also possible via phone contacts, similar to the popular Swiss financial app Twint. On the other hand, the so-called Social Recovery feature adds an extra layer of security to prevent the complete loss of the wallet's private keys.
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Almost 20% of all Bitcoins are lost
A crypto wallet's private key is a unique string of characters that allows the owner to access digital assets. Secure storage of these keys is critical. If they are stolen or lost, the user cannot access their cryptocurrency, nor can the private key be recovered. It is estimated that up to 20% the total Bitcoin supply is permanently lost in this way.
Amount of Bitcoin that hasn't been moved in the past five years / Source: Glassnode
The Zug-based startup has therefore developed a recovery feature to prevent such losses. When setting up the crypto wallet, a private key is generated as usual. Each user should store this key securely. As an additional security layer, a so-called "guardian" can be selected from contacts. This guardian then receives an encrypted copy of the key. If the user loses access, they can scan a QR code on the guardian's device to decrypt the private key and regain access to their cryptocurrency. The stress associated with the private key is dramatically reduced for a newcomer.
One wallet for the entire crypto ecosystem
Zippy launched with the Ether (ETH) and USD Coin (USDC) cryptocurrencies on the Ethereum blockchain. Users can exchange or purchase these digital assets directly from their bank accounts. But this is just the beginning, according to the founding team. The stablecoin Frankencoin will be added soon. In addition, expanding to a layer 2 solution is a goal for the app. Currently, transactions can incur significant fees. Integrating a scaling solution like Arbitrum would reduce these fees to a few cents.
Other ecosystems could also be added. The advantage of Ethereum is the access to a wide range of cryptocurrencies and their derivatives. There are equivalents for Bitcoin, US dollars, Swiss francs and many other digital assets. However, users rarely see the blockchain itself or come into direct contact with it. The user interface of the app abstracts all details to make the design as streamlined as possible. With this, the Zug-based startup is aiming for international expansion. After all, cryptocurrencies offer an attractive payment alternative for regions of the world without developed financial systems. For this to work, all functions must be as beginner-friendly as possible.
