Why crypto apps are struggling: Experts point out that it’s not just regulations but operational hurdles that are to blame

As the digital asset space continues to evolve, many have noted the gap between investing in cryptocurrencies and widespread adoption of consumer applications. Anthony MoroCEO of Provenance Blockchain Laboffered his views on these issues ahead of his appearance at . Benzinga Future of Digital Assets Conference.

Deploying encryption: Overcoming business and operational hurdles

When asked why crypto applications have not reached the level of adoption that many initially expected, Moro highlighted several obstacles. “Historically, there has always been concern from more conservative companies when it comes to regulation and investor protection in cryptocurrencies. [but] That’s not so much anymore. The current bottleneck is a business and operational problem,” Moro said.

He noted that companies need to make adjustments as to which areas are most ready for blockchain disruption. “For example, highly intermediated financial sectors such as consumer lending and the securitization of loan portfolios (such as mortgages) are obvious areas, and both have flourished on the Provenance blockchain,” he said. Moro emphasized that adoption has been slow in some areas, such as tokenization in insurance, but that adoption will ultimately yield clear benefits.

Successful tokenization of insurance

One notable example that Moro highlighted is the collaboration between Infineo and Provenance Blockchain, a company that brought life insurance policies to blockchain. “ProvLabs recently helped launch a company called Infineo to tokenize life insurance policies, which was the first of its kind,” Moro said. He added that by September, more than $190 million had been minted on-chain, a notable success in demonstrating the practical benefits of blockchain.

Knowledge gap in blockchain implementation

Another big hurdle, according to Moro, is that companies need to gain knowledge and expertise in blockchain technology. “Moving business functions to blockchain requires a lot of education and knowledge acquisition, especially if it is a critical legacy part of the business,” he said. Many companies don’t yet have the equipment or budget to handle this transition, so ProvLabs offers a solution.

“We take the burden off their shoulders with a SaaS solution that allows them to connect Web 2.0 applications directly,” said Moro, who said his company is helping traditional enterprises bridge the gap to blockchain integration. We explained how we are supporting them.

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