UX Inflection Point with Meso Network: Revolutionizing Crypto Payments and User Experience

The cryptocurrency space is on the cusp of a significant transformation in user experience, particularly in key management, wallet payments, and the overall interaction with blockchain technology. In a recent episode of The Cove Podcast, Ben from Meso Network shared invaluable insights into the future of crypto UX, the challenges of onboarding new users, and the innovative solutions that are set to reshape the industry.

The Genesis of Meso Network

Meso Network was founded in 2022 out of frustration with the existing methods of moving money in and out of self-custodial wallets. Ben and his team recognized that the current solutions for on and off-ramping cryptocurrency were not scalable or efficient. One startling statistic that drove their mission was the average success rate for debit card-based on-ramps in the US, which hovers around 50% - a figure that would be considered catastrophic in traditional payment systems.

The primary goal of Meso Network is to build infrastructure that allows developers of decentralized applications (dApps), wallets, and other crypto platforms to integrate seamless onboarding and usage capabilities. This infrastructure aims to eliminate the need for users to leave their preferred platform to use an exchange or another service for funding their crypto activities.

How Meso Network Works

Meso Network's approach to improving the crypto user experience is multifaceted. At its core, the platform operates as a B2B2C (Business-to-Business-to-Consumer) product. This means that while Meso's primary customers are developers and builders of crypto applications, the end-users of these applications are equally important in their consideration.

The complexity of what Meso is building extends beyond typical crypto challenges. As Ben explains:

"What complexity we're dealing with and kind of the challenges we face are completely different than from anything else people face in crypto. And that's because really 80% of what we're building isn't crypto, it's just pure fintech."

This fintech focus brings its own set of challenges, particularly in the realm of money transmission, which is highly regulated and more complex than e-commerce payments.

The Current Landscape of Crypto On-Ramps

The existing landscape for crypto on-ramps is dominated by exchanges, which handle the vast majority of on and off-ramp volume. However, Ben and his team at Meso see this as an opportunity to create a new category of service - a payment platform specifically targeted at crypto apps.

Drawing parallels with the evolution of online payments in the early days of the internet, Ben notes:

"When you look at the way payments evolved at the onset of the internet, you see like an eerily similar kind of evolutionary path where the early ways to accept online payments were things that felt a lot like Moonpay and RAN network where you would redirect the user, they would go to some other site, finish the payment and get redirected back to the site they're buying from."

This redirection model, while functional, is not optimal for user experience. The future, as envisioned by Meso, lies in embedded, seamless payment experiences within crypto applications.

The Importance of Off-Ramping

While much of the focus in the crypto space is on on-ramping - getting money into crypto - Meso places equal importance on off-ramping. This balanced approach is rooted in Ben's experience at Venmo, where he observed that making off-ramping easier actually led to users holding more balance in their accounts.

The reason for this counterintuitive behavior is trust. As Ben explains:

"To me like UX, especially when it comes to money and payments, there's a huge amount of kind of subjective nature of like what is good UX. But I generally think good UX when it comes to payments involves like handling trust well or earning the trust of users."

By providing clear and easy methods for users to withdraw their funds, platforms can instill confidence and encourage greater engagement with their services.

The Challenge of Crypto UX

The user experience in crypto has been a hotly debated topic, especially during bear markets. Ben offers a nuanced perspective on this issue, drawing from his background in web2 payments:

"UX is incredibly expansive. Like when I think about UX in terms of payments, the vast majority of what defines the experience is not the UI. It's like every minute happens behind the scenes."

He identifies three main categories of UX problems in crypto:

1. Interoperability with fiat currencies
2. User safety
3. Privacy

While Meso is primarily focused on solving the first issue, Ben acknowledges the importance of all three in creating a truly user-friendly crypto ecosystem.

Account Abstraction and User Safety

One of the most exciting developments in improving crypto UX is account abstraction. This architectural shift moves away from the assumption that all blockchain accounts for end users are externally owned (i.e., users hold their own keys) to a more flexible model where users or developers can choose from a spectrum of options.

Ben explains the advantages of this approach:

"To me the real advantages of this approach is kind of moving user accounts into smart contracts or like token accounts and Solana terminology is you get just infinitely more flexibility and ways to keep users safe. Like rotating keys becomes trivial, creating like arbitrary kind of logic to minimize like unauthorized access becomes really easy."

This flexibility allows for the implementation of more sophisticated security measures, such as setting transaction limits or requiring additional authentication for large transfers.

The Role of Pass Keys in Crypto UX

Pass keys, or Web Authentication (WebAuthn), represent another significant advancement in crypto UX. This technology, developed by major tech companies like Apple, Google, and Microsoft, aims to move away from traditional passwords and towards public key cryptography secured on users' devices.

Ben highlights the potential of pass keys in the crypto space:

"What what pass key or web auth in is doing is basically creating a system that this is not designed for crypto. This is something that really the whole industry Apple, Google, Microsoft, many others have been pushing for, which is just moving away from passwords and instead using public key cryptography by securing private keys on the user's device in the like secure enclaves that are now effectively standard across all every consumer device at this point."

The integration of pass keys with blockchain technology could provide a familiar and secure authentication method for users, potentially removing one of the major barriers to crypto adoption.

The Future of Crypto UX on Solana

Solana's unique architecture offers several advantages when it comes to implementing user-friendly features. Ben notes:

"There's a ton of aspects of the way Solana works in the way like transactions are constructed and like you interact with RPCs that are conducive to just much better UX like paying for users transaction fees on their behalf is just natively supported on Solana it's like trivial like that is huge."

This native support for features like fee abstraction could lead to more seamless and user-friendly applications on the Solana blockchain.

Meso's Approach to Onboarding New Users

As Meso prepares for its launch, the team is taking a measured approach to onboarding new users. Ben explains their strategy:

"We are going to be opening up to kind of a limited population um starting in september um I think if your if you're interested in testing and have it and are based in the u.s um you can DM me on twitter I'm happy to kind of add listeners uh to the to the list."

This alpha launch will serve as a testing ground for Meso's SDK, allowing them to refine their product before a wider release.

The Importance of Risk Management in Crypto Payments

One of the key challenges in making crypto payments more accessible is managing risk and preventing fraud. Ben sees on-chain data as a valuable tool in this effort:

"One of the other places that we're really excited about is how on-chain data can serve as a kind of proof of history for users that allows us to differentiate between potential fraudsters and like legitimate good crypto users."

This approach could allow for more favorable pricing for established crypto users while still providing a path for new users to enter the ecosystem.

The Path to Mass Adoption

While the focus of many in the crypto space is on onboarding the next billion users, Ben and the Meso team are taking a more measured approach. They recognize that the current crypto user base, while small, is highly engaged and likely to create or discover the applications that will drive wider adoption.

Ben explains their strategy:

"We believe that like that that is the group that is either going to discover or create the next apps and experiences that onboard an ex-billion users so we wanted to have fantastic jobs serving them before we earned the right to onboard the next wave of users."

This focus on serving existing crypto users well could create a strong foundation for future growth and adoption.

The Importance of Fiat On and Off-Ramps

While many in the crypto space focus on the potential for cryptocurrencies to replace traditional fiat currencies, Ben takes a more pragmatic view:

"I generally don't subscribe to the belief that like in a short period of time, we're gonna see a cryptocurrency replace the US dollars, the global currency. Like I think fiat and the US dollar is here to stay for the foreseeable future."

Given this perspective, Meso sees the development of efficient fiat on and off-ramps as crucial for the growth and adoption of crypto. By making it easier for users to move between fiat and crypto, they hope to reduce friction and increase overall usage of blockchain technology.

The Challenge of Privacy in Crypto

One of the more complex issues facing the crypto industry is the balance between transparency and privacy. While the public nature of blockchain transactions offers unprecedented transparency, it also raises concerns about financial privacy.

Ben notes:

"I think privacy when it comes to a user's financial life is complicated. And like some people might be totally fine with things being public, but for many others, it's not just a choice for them to be private, it has to be private for their own personal safety."

Addressing these privacy concerns while maintaining compliance with regulatory requirements presents a significant challenge for the industry.

The Role of Regulation in Crypto Adoption

The regulatory landscape plays a crucial role in shaping the future of crypto adoption. Ben sees some positive developments in this area, particularly when it comes to anti-money laundering (AML) efforts:

"I have been pretty happy with the progress I've seen like the regulatory agencies involved in things like anti-money laundering have started to realize that like actually crypto is even easier to build anti-money lending program on than non-crypto."

However, he also acknowledges that privacy-focused solutions may face greater regulatory scrutiny, potentially slowing their development and adoption.

The Potential of Smart Contract Wallets

Smart contract wallets represent a promising solution to many of the UX challenges in crypto. These wallets can offer more flexibility in terms of security and functionality compared to traditional externally owned accounts.

Ben envisions a future where smart contract wallets could offer users a range of custody options:

"One of the visions I have for a smart contract wallet that would onboard you know the next billion users I think involves the ability for a user to sign up and choose to say hey I would like to work with a third party provider to secure my wallet."

This approach could provide users with additional security and support while still maintaining the core principles of self-custody.

The Importance of Seamless UX in Crypto Apps

Throughout the discussion, Ben emphasizes the critical role that seamless user experience plays in driving crypto adoption. He draws parallels with the evolution of web payments:

"The more you can embed that and kind of make it seamless with the users trying to do, the better you're gonna be. And this is why you saw the kind of API model of an end payment platform really evolved over the kind of like 2010 period through Braintree which is where myself and actually most of the Meso team worked at as part of the early engineering team or more commonly known Stripe."

By focusing on creating intuitive, embedded payment experiences, crypto apps can reduce friction and make blockchain technology more accessible to a wider audience.

The Future of Crypto Payments

Looking ahead, Ben sees a future where crypto payments become as seamless and user-friendly as current digital payment methods like Apple Pay or Google Pay. However, he notes that achieving this level of convenience while maintaining the unique benefits of blockchain technology will require innovative solutions:

"I think on the EVM I expect we'll get there as well but that is just going to take more time. There isn't an EIP that's getting some good traction which is trying is suggesting they support a pre-compile function to do this similar signature verification for pass keys so that they could do something similar on EVM but that I expect is going to take much longer."

This ongoing development work across different blockchain ecosystems highlights the industry-wide effort to improve crypto UX.

The Role of Education in Crypto Adoption

While much of the discussion focused on technical solutions to UX challenges, Ben also touched on the importance of education in driving crypto adoption. He notes that many of the concepts in crypto, such as irreversible transactions, are entirely new to most users:

"For people who aren't exposed to that it's like it's it's like explaining to someone like a new color that they've never seen before like it's it's like they can't that around it because there is literally no example of that in the real world for them personally."

This underscores the need for clear, accessible education alongside technical improvements to drive wider adoption of crypto technologies.

The Potential of On-Chain Data for Risk Management

One of the unique advantages of blockchain technology is the rich, public data it generates. Ben sees significant potential in leveraging this data for risk management and fraud prevention:

"One of the other places that we're really excited about is how on-chain data can serve as a kind of proof of history for users that allows us to differentiate between potential fraudsters and like legitimate good crypto users."

This approach could allow for more nuanced risk assessment, potentially leading to better user experiences for established crypto users while still providing pathways for new users to enter the ecosystem.

The Importance of Pragmatism in Crypto Development

Throughout the discussion, Ben emphasized the importance of taking a pragmatic approach to crypto development. Rather than adhering strictly to ideological principles, he advocates for solutions that balance decentralization with usability:

"Personally this is a place where I feel like we can't let the like principles of decentralization get in the way of progress and I think the right solution is giving users kind of a a like spectrum of self custody that they can like very seamlessly move on."

This balanced approach could be key to developing solutions that are both true to the ethos of crypto and accessible to a wide range of users.

The Role of Existing Crypto Users in Driving Adoption

While much of the crypto industry focuses on onboarding new users, Ben and the Meso team see significant value in serving existing crypto users well. He explains:

"We have like a small highly engaged population of crypto natives using crypto today we believe that like that that is the group that is either going to discover or create the next apps and experiences that onboard an ex-billion users."

By focusing on providing excellent experiences for current crypto users, Meso hopes to catalyze the development of applications and use cases that will drive wider adoption.

The Potential of Solana for Improved UX

Throughout the discussion, Ben highlighted several features of Solana that make it particularly well-suited for developing user-friendly crypto applications. He notes:

"The thing that has become pretty clear to me over the last couple months is there's a ton of aspects of the way Solana works in the way like transactions are constructed and like you interact with RPCs that are conducive to just much better UX."

These architectural advantages could position Solana as a leading platform for the development of user-friendly crypto applications.

The Future of Crypto UX

As the discussion concluded, it became clear that the crypto industry is at an inflection point when it comes to user experience. With innovations in account abstraction, pass keys, and smart contract wallets, combined with improved fiat on and off-ramps, the foundations are being laid for a significantly more user-friendly crypto ecosystem.

While challenges remain, particularly in areas like privacy and regulation, the work being done by teams like Meso Network is paving the way for a future where interacting with blockchain technology is as seamless and intuitive as using any other digital service. As these improvements continue to roll out, we may well be on the cusp of the next wave of crypto adoption, bringing the benefits of blockchain technology to a wider audience than ever before.

Facts + Figures

• Meso Network was founded in 2022 to address frustrations with moving money in and out of self-custodial wallets.
• The average success rate for debit card-based on-ramps in the US is around 50%, which is considered extremely low in the payments industry.
• Meso Network operates as a B2B2C (Business-to-Business-to-Consumer) product, primarily serving developers but with a focus on end-user experience.
• 80% of what Meso is building is pure fintech, rather than crypto-specific technology.
• The majority of current on and off-ramp volume in crypto comes from exchanges.
• Making off-ramping easier can lead to users holding more balance in their accounts, based on experiences at Venmo.
• Account abstraction allows for more flexible and secure wallet designs, including features like key rotation and customizable transaction limits.
• Pass keys, developed by major tech companies, aim to replace traditional passwords with public key cryptography secured on users' devices.
• Solana's architecture natively supports features like paying for users' transaction fees, which can lead to better UX.
• Meso Network is planning a limited alpha launch in September, initially open to U.S.-based users.
• On-chain data can be used as a "proof of history" for users, helping to differentiate between potential fraudsters and legitimate users.
• Meso Network aims to offer on-ramps at 1.5% fees for early users, compared to the industry average of 3-8% in the U.S.
• The crypto industry is seeing increased cooperation from regulatory agencies, particularly in areas like anti-money laundering efforts.
• Smart contract wallets could offer users a spectrum of custody options, including the ability to work with third-party security providers.
• Existing crypto users, while a small population, are seen as key to discovering or creating the applications that will onboard the next billion users.

Questions Answered

What is Meso Network?

Meso Network is a fintech infrastructure company founded in 2022 to improve the process of moving money in and out of self-custodial crypto wallets. They aim to provide developers with tools to integrate seamless on and off-ramping capabilities into their applications, eliminating the need for users to leave the app to fund their activities. Meso's approach combines elements of traditional fintech with crypto-specific solutions to create a more user-friendly experience.

How does account abstraction improve crypto UX?

Account abstraction improves crypto UX by moving user accounts into smart contracts, providing more flexibility and security options. This allows for features like key rotation, customizable transaction limits, and more complex authentication processes. By abstracting away some of the complexity of key management, account abstraction can make interacting with blockchain technology more intuitive and secure for users, potentially reducing barriers to adoption.

What are pass keys and how do they relate to crypto?

Pass keys, also known as Web Authentication (WebAuthn), are a technology developed by major tech companies to replace traditional passwords with public key cryptography secured on users' devices. While not originally designed for crypto, pass keys have the potential to significantly improve crypto UX by providing a familiar and secure authentication method. By integrating pass keys with blockchain technology, users could potentially manage their crypto assets using the same authentication methods they use for other digital services.

How is Meso Network approaching user onboarding?

Meso Network is taking a phased approach to user onboarding, starting with a limited alpha launch in September for U.S.-based users. Their initial focus is on serving existing crypto users well, believing that this engaged group will be key to discovering or creating the applications that will drive wider adoption. Meso plans to offer early users preferential pricing, with on-ramp fees of 1.5% compared to the industry average of 3-8%. This strategy aims to refine their product with experienced users before expanding to a broader audience.

What advantages does Solana offer for improving crypto UX?

Solana's architecture offers several advantages for improving crypto UX. Notably, it natively supports features like paying for users' transaction fees, which can lead to more seamless experiences. The way Solana constructs transactions and interacts with RPCs (Remote Procedure Calls) is conducive to better UX design. These architectural features make it easier for developers to create user-friendly applications on Solana, potentially positioning it as a leading platform for accessible crypto solutions.

How does Meso Network plan to use on-chain data?

Meso Network plans to leverage on-chain data as a "proof of history" for users, helping to differentiate between potential fraudsters and legitimate crypto users. This approach could allow for more nuanced risk assessment, potentially leading to better user experiences for established crypto users while still providing pathways for new users to enter the ecosystem. By analyzing on-chain activity, Meso aims to improve fraud prevention and risk management in crypto payments.

What role does privacy play in crypto UX?

Privacy is a complex and crucial aspect of crypto UX. While blockchain technology offers unprecedented transparency, it also raises concerns about financial privacy. Some users may be comfortable with public transactions, but for others, privacy is essential for personal safety. Balancing privacy with regulatory compliance and the inherent transparency of blockchain technology presents a significant challenge for the industry. Developing privacy-preserving solutions that meet regulatory requirements is an ongoing area of focus for many in the crypto space.

How does Meso Network view the relationship between crypto and traditional finance?

Meso Network takes a pragmatic view of the relationship between crypto and traditional finance. They don't expect cryptocurrencies to replace fiat currencies like the US dollar in the short term. Instead, they focus on creating efficient fiat on and off-ramps, seeing interoperability between crypto and traditional finance as crucial for growth and adoption. This approach aims to reduce friction for users moving between fiat and crypto, potentially increasing overall usage of blockchain technology.

What are smart contract wallets and how could they improve crypto UX?

Smart contract wallets are wallet solutions built using smart contracts, offering more flexibility and functionality compared to traditional externally owned accounts. They could improve crypto UX by allowing for customizable security features, easier key management, and the potential for third-party security providers. Smart contract wallets could offer users a spectrum of custody options, balancing self-custody principles with additional support and security features. This flexibility could make crypto more accessible to a wider range of users with different needs and technical expertise levels.

How does Meso Network plan to compete with existing crypto on and off-ramp solutions?

Meso Network plans to compete with existing solutions by focusing on creating a seamless, embedded payment experience within crypto applications. They aim to offer lower fees (1.5% for early users compared to the industry average of 3-8%), better success rates for transactions, and improved risk management using on-chain data. By positioning themselves as a comprehensive payment platform for crypto apps, similar to how Stripe functions for web payments, Meso hopes to provide a more integrated and user-friendly solution compared to existing options that often require users to leave their preferred application to complete transactions.