Making Crypto Transactions Simpler and More Accessible
When Mysten Labs was founded two years ago by four former engineers from Facebook, their purpose was to continue the work they started at the social media giant. One of their primary goals was to make sending money, or crypto, over the internet as effortless as any basic online communication.
“We aimed to make sending money as easy as sending an email,” explained Mysten Labs co-founder Adeniyi Abiodun in an interview with The Block. However, they couldn’t achieve this objective while at Facebook. Now, the goal may finally be within reach with the introduction of Sui, the Layer 1 blockchain developed by Mysten Labs.
Addressing Complexity for Widespread Usage
While the crypto community thrives, many startups, including high-profile ones like Mysten Labs, have faced challenges in terms of adoption and user onboarding.
Mysten Labs believes that the key to widespread crypto adoption lies in simplifying its usage. Abiodun stated, “We’ve invented technology that allows anyone worldwide to send money across the globe using just a standard web2 identity.” With the Sui blockchain, Mysten Labs has created a way for people to send money to one another, even if they don’t own a crypto wallet. This innovation is made possible through their verification system called “zkLogin,” utilizing two zero-knowledge proofs.
Unlocking the Potential of Blockchain Applications
The complexity associated with blockchain technologies has deterred many individuals from embracing the potential benefits of global, cost-effective fund transfers. Abiodun points out that while there are over 5 billion people with web2 accounts, only 16 million possess active crypto wallets.
“It’s nonsensical for users to download wallets or pay gas fees to transfer funds using crypto,” Abiodun emphasized. Such requirements make blockchain inaccessible to the majority. Moody’s also commented on Ethereum’s adoption challenges, noting issues with speed, scalability, and security. Mysten Labs is not alone in its pursuit of making crypto more accessible. Traditional payments giant PayPal, for instance, has introduced new initiatives, while Giddy, a digital wallet provider, announced an integration with Stripe to enhance accessibility to cryptocurrencies.
Coinbase, the leading US exchange, recently launched a feature allowing users to transfer money via links on messaging and social media platforms like WhatsApp, Facebook, TikTok, and Instagram.
Contrasting Mysten Labs’ Approach to Centralized Systems
Although Coinbase’s initiative may drive further adoption, it resembles the centralized system Mysten Labs aims to avoid with Sui, according to Abiodun. He pointed out that joining the Coinbase ecosystem and using a Coinbase wallet is a prerequisite. In contrast, Mysten Labs envisions a system that doesn’t require a wallet and isn’t a closed loop.
“We have no interest in dominating the ecosystem with our own apps,” emphasized Abiodun.
Mysten Labs has secured significant backing, with prominent VC firms such as Andreessen Horowitz’s a16z crypto unit, Jump Crypto, Apollo, Binance Labs, Franklin Templeton, and Coinbase Ventures participating in a $300 million funding round that valued the company at over $2 billion.
The original core team of Mysten Labs includes CEO Evan Cheng, Sam Blackshear, George Danezis, and Adeniyi Abiodun, all former engineers at Facebook.