The CEO of Crypto.com brought up the subject of scaling again in a tweet conversation from July 5, 2022. Kris Marszalek illustrates the effectiveness of this tool as a risk management tool for a cryptocurrency company by using his own plan as an example.
Why is scaling important?
In plain English, a blockchain’s scalability largely pertains to transaction throughput. In comparison to traditional payment methods, cryptocurrencies now take longer to complete transactions. However, blockchain participants are figuring out the best way to get around this flaw.
The network’s capacity, which includes the number of nodes, the number of transactions it can handle, the network’s processing speed, etc., is determined by scalability. Because it can only handle seven transactions per second (TPS), which is insufficient for use, Bitcoin is mostly seen as being unscalable due to its throughput (compared to VISA, which can reach 24,000 GST). Another challenge related to scalability is the speed of finalization (to establish the legitimacy of a purchase).
Crypto.com: What is it?
Currently, it is one of the most significant exchanges. The site is appropriate for beginners and allows for the purchase, sale, exchange, and use of cryptocurrencies. A standout feature of the Crypto.com application is that it allows users to manage their Crypto.com Visa card and purchase more than 100 cryptocurrencies at actual prices while also earning high interest on their holdings. Users that utilize Crypto.com can keep complete control over their private keys.
Particular aspects of the exchange include the following:
- On the Google Play Store, the Crypto.com app has been downloaded by about 10 million people globally;
- the potential for getting a Visa Metal card;
- To receive a fast loan, deposit cryptocurrency;
- Users of the app can instantly buy or sell their cryptocurrencies on the Crypto.com Exchange.
- Scalability: A tool for crypto.com to combat the bear market
In the previous year, crypto.com aggressively pursued scalability while working to attract the greatest number of customers and earn the most money possible in a positive market. According to Kris Marszalek, the rationale behind this tactic was the impending bear market. The scalability of the crypto.com blockchain allowed for relatively high lows compared to the crypto market generally, despite the knowledge that there was a danger of a decrease in activity and that as a result revenues would plummet.
For making unpleasant and difficult decisions for its users, Crypto.com has recently come under fire. However, according to the trading platform’s PDF, these were the correct choices. He says that by using this tactic, the business was able to keep its withdrawals policy in place and no new limitations were added.
According to his comments on Twitter, this strategy will propel Crypto.com into the Top 3 or Top 5 exchanges in the world in terms of annual revenue. He continues, “Few have attained the scalability needed to sustain such an ambition. Operating such a trustworthy, secure, and regulated platform with global reach is expensive.”
