It’s 2022 and blockchain smartphones still make no sense

Most people will agree that the smartphone industry urgently needs disruption. Apart from the collapsible market, we have seen very little in recent years in terms of innovation and feature differentiation. So when a young startup company with a pedigree team announces that it’s building a smartphone to challenge that status quo, it’s hard not to get a little excited.

This is exactly what happened when we first heard about the privacy-focused OSOM OV1 smartphone last year. If you are not familiar with the OSOM brand, this is a new venture founded by former Essential employees.

Earlier this week, we finally learned more about the OSOM OV1, which has now been postponed until early 2023. The device features high-end, flagship-grade specifications, with a proper $ 1,000 price tag to match. In a big turnaround, however, OSOM no longer markets the OV1 as its own product. Instead, it has a partnership with Solana, a blockchain company.

The Solana Saga, as it is now called, promises to include “unique functionality and features that are tightly integrated with the Solana blockchain”. This is definitely a massive pivot of OSOM’s initial goal of delivering only a privacy and security-centric Android smartphone. But does this new focus make any sense? Let’s break it down.

catch up: What is blockchain technology?

What does the Solana Saga hope to achieve?

If you’re wondering what makes the Solana Saga any different from previous niche blockchain / cryptocurrency smartphones, it’s not exactly clear. By browsing the official website, you will come across some choice quotes such as “resize web3 for mobile” and “remove friction for self-preservation.” We once heard similar one-dimensional claims from companies like HTC and Sirin Labs. Needless to say, these efforts did not succeed.

Fortunately, a few further digs reveal that the company has also released a software development kit called the Solana Mobile Stack. In a nutshell, it provides Android developers with the tools needed to build secure cryptocurrency wallets and Web3 applications. You might think of the stack as similar to Google Mobile Services (GMS), but for a much, much more real use case.

Read more: What is Web3 and why is it so controversial?

As you would expect, the Solana Mobile Stack will be pre-installed on every Solana Saga. It will also allow users to store their cryptocurrency wallet keys in a secure enclave on the device. In particular, it is the same security mechanism that other Android phones use to protect sensitive data such as fingerprints.

But does the average cryptocurrency user need a dedicated blockchain smartphone to facilitate simple transactions? Not really. You can use decentralized applications (dApps) on just about any Android device, own NFTs with software wallets, and make crypto-currency payments via a web browser. Of course, you can sacrifice a little security, but no one keeps their life savings on a cell phone anyway.

Regardless of the existing options, CEO Anatoly Yakovenko seems to think Solana has something unique to offer. In a blog post accompanying the Saga’s launch, he wrote:

… I hear stories every day of people leaving dinners, conferences and holidays to go back to their computers and sign important transactions. The coins, trades, listings and transfers that are critical to the daily lives of crypto lovers drag us away from our lives with others. The only companies with the resources to realize the self-monitoring mobile future we all dream of, Apple and Google, have had no updates to give their roadmaps for crypto.

In other words, Solana claims that it will do what Google and Apple do – embed an entire ecosystem of crypto applications and experiences directly into the phone’s software. Whether this is a good idea or not remains to be seen.

See also: The best cryptocurrency applications

Why blockchain smartphones do not make sense

If there is one thing we know for sure, it is that the demand for blockchain smartphones has not really grown since 2018 when the HTC Exodus first broke coverage. In fact, you could argue that it makes even less sense now. Web3 and NFTs have become extremely controversial topics these days and it is also not hard to see why. Many believe that the market is flooded with half-baked and cart platforms, or worse, completely fraudulent projects. And Solana also failed to escape his share of controversy.

Dive in: Why do people say NFTs are bad?

Over the past few months, the Solana blockchain has suffered several network outages due to a variety of software bugs, which prevent users from doing transactions for as long as 18 hours. For many, the appeal of blockchain technology depends on transparency, reliability and decentralization. Solana has so far failed to deliver in these areas and has elicited much criticism for it.

With all that in mind, it’s hard to see a scenario where the Solana Saga succeeds above other $ 1,000 smartphones. The Galaxy S22 series not only competes in the same price range, but also offers Samsung’s long-established Blockchain Keystore. The latter allows you to store cryptocurrency securely and pair with decentralized applications, not too far from Solana’s pitch. It’s also cryptocurrency agnostic, so you’re not bound by Solana or any particular blockchain.

Back in 2018, we felt that the Sirin Finney smartphone (pictured above) did not make much sense at its $ 1,000 price point. Did we just come full circle with the Solana Saga four years later? Only time will tell.