Krypfriktion

Krypfriktion is a term used to describe the cumulative cost and delay associated with using cryptocurrency systems. The word combines a reference to crypto with friction, emphasizing how design choices, infrastructure, and processes can slow down or deter participation in crypto markets and applications. It is not a formal technical standard, but a descriptive concept used to discuss usability and efficiency in crypto ecosystems.

Friction in this context appears in several forms. Financial friction includes on-chain fees, price slippage, and costs related to moving assets across networks. Technical friction encompasses network latency, long confirmation times, and risks inherent in cross-chain bridges. User experience friction covers wallet complexity, key management, and other onboarding hurdles. Regulatory or administrative friction arises from Know Your Customer and anti-money laundering requirements, as well as custody and compliance burdens.

The impact of krypfriktion is seen in reduced liquidity, slower price discovery, and lower user adoption. Efforts to reduce it focus on design and infrastructure improvements, such as layer-2 scaling and rollups to lower fees and latency; more intuitive wallets and simpler custody models; streamlined onboarding processes; and standardized interfaces across exchanges and wallets to minimize information gaps.

Examples often cited include high Ethereum gas fees during congestion, significant price slippage on some decentralized exchanges, delays in cross-chain transfers, and the overall complexity of setting up non-custodial accounts for new users.

The concept is widely used in informal discussions and lacks formal metrics, but it provides a useful framework for evaluating what changes most effectively boost participation and efficiency in crypto systems.