Why Startups aren't Using Ethereum

Ishan Pandey: Hi Alexander Mamasidikov, welcome to our series “Behind the Startup.” Please tell us about yourself and the story behind Mineplex?

Alexander Mamasidikov: Hey! Thanks for the invitation. At the start of my career, I became interested in marketing, PR and IT. I understood that computer technology and programming would change the world very quickly. I read a lot of business books, got ideas and inspiration. Prior to creating MinePlex, I was involved as a marketing biz dev in over 70 startups. They were dedicated to blockchain and cryptocurrency. Some of these projects were included in the TOP-10 and TOP-30 cryptocurrencies on the coinmarket. I am grateful to my colleagues and projects. They gave me a huge experience and benefited me.

Ishan Pandey: High ethereum transaction fees are a death knell for blockchain projects. What are your views on the current state of transaction fees on Ethereum?

Alexander Mamasidikov: One of the vulnerabilities of Ethereum is the high network fees and low transaction capacity of the blockchain. They prevent many startups from using Ethereum.

Ethereum high network fees and low transaction capacity is preventing startups from using Ethereum.

This is a huge problem for bootstrapped blockchain startups, due to which other blockchains can take a pie of the market share – an opportunity in which blockchains like Solana, Cardano, Fantom and other blockchains are not missing out.

Ishan Pandey: Cybersecurity is important for digital assets based wallets. What are the best cybersecurity practices that custody wallets should keep in mind?

Alexander Mamasidikov: The most important thing is to store the seed phrase in a safe place, in several formats. Do not store the seed phrase on your computer, do not send it to anyone over the Internet. Also - set up two-factor authentication. These are very simple steps, but they always work.

Further, as a founder of a blockchain startup, you may get a lot of files and texts with downloadable file formats! Never download such files! Never! Many hackers use such social engineering techniques to hack or get into the cybersecurity framework of a blockchain startup. Therefore, it is critical to always have proper cybersecurity policies and controls in place for all employees.

Ishan Pandey: Can you explain what staking is for beginners who are just starting out in crypto?

Alexander Mamasidikov: Staking can be compared to a bank deposit that generates income. You give assets at the disposal of the bank, which earns money for itself and for you over a certain period. For example, in MinePlex staking, you only give your address for delegation. Your tokens always remain in your account.

Ishan Pandey: Is digital banking going to be the future? What are your views on it?

Alexander Mamasidikov: The digital bank is already part of the present. The only question is who will be the first to add the ability to use cryptocurrency to the functionality of your bank. This will make it possible to pay with cryptocurrency seamlessly with daily spending. According to surveys of large analytical companies, crypto-friendliness becomes the main factor when choosing a bank for a new generation.

Ishan Pandey: What are your views on NFT art and NFT based games? According to you, which ecosystem is better: Ethereum or Solana?

Alexander Mamasidikov: In my opinion, NFT in art and games is just a sign of the present time. It carries value for a certain segment of users. When choosing Ethereum or Solana, the latter has more bandwidth. This is a clear advantage for building an ecosystem.

Ishan Pandey: There are currently very few DeFi companies that are compliant with legislation around the globe, and this must be rectified if these companies are to realise their full potential. From a regulatory standpoint, can you tell us about the basic minimum compliances these entities must abide by?

Alexander Mamasidikov: In DeFi projects, only users manage their assets. They are decentralized and unregulated by nature. It is not known when the regulators will find a way out of this situation.

Ishan Pandey: Elon Musk’s tweets have endorsed DeFi and the entire community has been instilled with confidence in the DeFi ecosystem. However, the recent Bitcoin price rally and the subsequent slump have shown the world how a tweet can make or break the market. In this regard, what is your take on the matter and how do you think the DeFi space has been affected by Elon Musk’s tweets?

Alexander Mamasidikov: In my opinion, Elon Musk is manipulating for his own purposes. And any such manipulation is not good. Musk is a media personality, he influences memes tokens, which do not carry value, but are used for speculative trading. But it gives someone to make money. Any trader needs ups and downs. This is how they work.

Ishan Pandey: Please, tell us about Mineplex and what does it do? Please give a technical and business explanation.

Ishan Pandey: MinePlex Banking is a CrossFi project that combines traditional banking services and the capabilities of blockchain, cryptocurrency and fiat in one application. Our goal is to give users the tools to use crypto assets every day without resorting to third parties: exchanges, exchangers, etc. For this, we created our own blockchain with two native tokens MINE and PLEX. Their work is arranged in such a way that one generates the other. We are developing crypto-fiat processing, which will allow the user to use a bank card to spend cryptocurrency directly, seamlessly at the time of purchase or sale.

Ishan Pandey: What are going to be the next trends in the blockchain industry according to you?

Alexander Mamasidikov: I will highlight two trends. CrossFi technologies that will give a new round for the development of the connection of cryptocurrency, blockchain and fiat, new opportunities for customers anywhere in the world. The second clear trend is GameFi technology. Its popularity has just begun. It provides new opportunities to earn money in the gaming industry, using the advantages of blockchain and cryptocurrency.

Disclaimer: The purpose of this article is to remove informational asymmetry existing today in our digital markets by performing due diligence, asking the right questions and equipping readers with better opinions to make informed decisions.

The material does not constitute any investment, financial, or legal advice. Please do your research before investing in any digital assets or tokens, etc. The writer does not have any vested interest in the company.