Education, approach to users and businesses, are some of the keys.
Galoy reflected on the custody of bitcoins and the community approach.
Before there was a law in El Salvador to convert bitcoin (BTC) into legal tender along with the dollar, a beach community in the country had already adopted cryptocurrency on their own. And, since then, it has been known as the bitcoiner beach.
The Salvadoran president himself, Nayib Bukele, recognized that the example of El Zonte (that’s the name of this community) served as the germ for what finally ended up being developed with the Bitcoin Law: the cryptocurrency was adopted by an entire country, as we reported in CriptoNoticias, on September 7.
But, what is important about the case of El Zonte and its Bitcoin Beach? Galoy’s team, a US-based company that created the wallet they use in the area (Bitcoin Beach Wallet), answers this question through a post on your blog.
In particular, Galoy reflected on the lessons that the example of El Zonte has left. as an argument for building a Bitcoin-based community banking. And according to his analysis, there are 6 teachings of El Zonte.
Educate, add businesses, use bitcoin as money
The first lesson that the text exposes is that of education as a primary element. Above all, starting from the fact that «Bitcoin is something difficult to understand. It covers computing, economics, history, cryptography, monetary policy and more, ”in the words of Galoy’s team.
And, although that is true, they also qualify that people they should not understand everything that goes on behind Bitcoin in order to use it and benefit from it. Even so, among his advice stands out having a team that is dedicated to incorporating people, showing how it is used instead of explaining it or including the youngest, who will lead their parents to adopt it as well.
On the other hand, they considered the power of the Lightning network to facilitate the use of bitcoin on a day-to-day basis, taking into account that it is cheaper and faster than using transactions from the main chain of Bitcoin when making retail purchases.
The integration of the Lightning Network has become at stake for any wallet or financial service that is built on Bitcoin. It unlocks great potential for near-free, global, real-time, and permissionless transactions.
Galoy, the creator of the Bitcoin Beach Wallet.
Incorporating merchants is another key mentioned in the publication. Recognize Galoy’s team, yes, that creating a circular economy around bitcoin represents a paradox, because for those merchants to receive BTC for their products, they need customers willing to spend it on their purchases. And the latter, in turn, need places that accept it.
Therefore, the analysis establishes the need to make this process as friendly and easy as possible for both parties. Either with the simplification of the conversion to fiat money, the enabling of diversity of ways to pay with bitcoin or with the creation of incentives for the use of BTC in commercial transactions.
Experience, custody, banking: a bitcoinized community economy
To achieve a bitcoinized economy in a community like Bitcoin Beach, it has been key that people learn together to use BTC within the community itself. This gives an advantage to teams like Galoy’s or anyone else that undertakes bitcoin projects in communities. Allows them evaluate based on the needs and expectations of the inhabitants. Those that, with cryptocurrency, you have to help cover.
The fifth lesson of El Zonte, in the eyes of the American company, leads us to the custody of bitcoins. Although the bitcoiner maxim points to self-custody as “the desired end state for each person who owns bitcoin wealth,” the text states that this is not the only or the most appropriate of ways to “incorporate communities into the concept and the practice of using Bitcoin ». Hence that the figure of a Bitcoin community bank is proposed which, in this case, is based on the Bitcoin Beach Wallet.
Ultimately, Galoy values the importance of starting small, building momentum, and expanding. And they give two keys so that those who start with a project like this can go from having an idea to an economy: “starting with a defined community helps to build a solid foundation,” they say.
They also remember that growth begins gradually and then exponentially. “When incorporating a community to Bitcoin, expect to spend as much effort and time incorporating the first 50 people as the next thousand,” is his advice.
Galoy thus exposed the El Zonte community as a success story for the gradual adoption of bitcoin in communities. But this case not only served as an inspiration for Bukele to take the experiment to a national dimension in El Salvador. There are also already projects that take the testimony of Bitcoin Beach for themselves. Bitcoin Lake, in Guatemala; or Bitcoin Beach Brasil, are examples of this, as we have reported in this medium.