Web3 wallets are rapidly evolving to become vital tools for widespread crypto adoption. Experts like Luis Ocegueda, Head of Engineering at Trust Wallet, and Alvin Kan, COO of Bitget Wallet, highlight how these wallets are adapting to meet user expectations and overcome the complexities of blockchain technology.
Breaking Barriers: Simplified Web3 Wallets for Better Crypto Adoption
The crypto and Web3 ecosystem has seen a remarkable surge in user engagement. DappRadar reports a record high in Web3 application users in Q2, with daily unique active wallets (dUAW) reaching 10 million, a 40% increase from Q1. However, the complexity of blockchain technology remains a significant barrier for newcomers. An April report from Preply revealed that 35% of crypto investors lacked confidence in their knowledge, with many unfamiliar with basic concepts like blockchain.
New users often struggle with functionalities such as cross-chain transfers, seed phrases, gas fees, and decentralized applications (dApps). Alvin Kan acknowledged these challenges, stating that education is crucial for users to navigate these complexities, especially when dealing with multiple chains.
However, both Kan and Luis Ocegueda believe that enhanced Web3 wallets can mitigate these challenges. Smart wallets, for instance, are pivotal in facilitating a smoother onboarding experience, making the crypto ecosystem more appealing to both new and experienced users.
The Role of Smart Wallets in Bridging Blockchain Complexities
Companies like Trust Wallet and Bitget Wallet are at the forefront of providing enhanced Web3 wallets. Trust Wallet’s SWIFT feature accepts gas payments in over 200 tokens, removing the need for users to hold specific tokens. Similarly, Bitget Wallet’s InstantGas feature allows users to swap tokens without needing native tokens in advance.
Interoperability is a significant challenge in on-chain transactions. Both Bitget Wallet and Trust Wallet address this with features like account abstraction and cross-chain swaps. Users can manage assets and perform transactions on various blockchains without needing multiple wallets, significantly improving convenience and accessibility.
Ocegueda explained how a smart contract wallet can be designed to work seamlessly across different blockchains and platforms. This design allows users to interact with a wider range of DeFi services and assets, providing accessibility for managing assets and performing transactions on the go. This feature is particularly appealing to new and younger users.
“There is also diverse progress regarding chain abstraction enabled through smart wallets. This means users can manage their assets and perform transactions on multiple chains much more easily, which appeals to experienced users seeking a seamless experience,” he added.
Improving UI/UX and Security Measures
As Web3 evolves, so do user expectations from wallets. Kan noted that users now expect sophisticated features similar to those found in centralized exchanges (CEX). Features like swaps, earning opportunities, and questing for rewards have become integral. To meet these growing demands, Bitget Wallet incorporates various functionalities, including smart money insights and pre-market trading.
Meanwhile, Ocegueda mentioned that smart wallets could be integrated into Web2 payment systems and support diverse forms of payment. For example, crypto payments could be enabled with a Visa or Mastercard, with automatic crypto withdrawal from the wallet whenever users pay with the card.
User interface and experience (UI/UX) play crucial roles for Web3 wallet users. Kan admitted that the current UI/UX across the Web3 sector needs significant improvement. Often, Web3 wallet interfaces require numerous clicks and substantial education to understand, which can deter new users.
“Web2 has done it very well. And that shouldn’t be an excuse for why we can’t do it in Web3. I think this has to do with certain things, like better talent coming from Web2 to Web3 to increase the products’ UIs,” Kan opined.
Both experts agree that security is paramount for Web3 wallet users and the broader crypto industry. Web3 wallets have witnessed enhanced security features like multi-factor authentication (MFA) and automated fraud detection. For instance, Trust Wallet SWIFT eliminates the risk of unlimited approvals by merging the approval process into one, leveraging batch execution. Bitget Wallet, besides implementing strong security measures, is adding a $300 million protection fund to safeguard users’ assets and transaction protection.
In conclusion, as Web3 wallets continue to evolve, their enhanced features and improved security measures are crucial in driving broader crypto adoption. By simplifying the user experience and addressing interoperability challenges, these wallets are making the crypto ecosystem more accessible and appealing to a wider audience.
