There are many expectations that 2024 will be the year of Web3's boom.
But while this may be true as far as markets are concerned, it doesn't mean much if the average user can't participate comprehensively.
We are hindering our own growth by overlooking a major bottleneck: our wallets.
We can all agree that a wallet alone is not enough.
But what if we took a step back from the technical barriers of wallets for a moment and thought about the associations of the term “wallet”? The crypto industry as a whole already has a bit of a boys’ club reputation. Does the use of the name “wallet” contribute to that cause?
Can I use a wallet, handbag, or briefcase instead of a wallet? Could it be personalized so that users can extend their personality in the same way that fashionistas carry designer bags or wear custom-made shoes?
For brands considering entering Web3, the variety may also be attractive. A Louis Vuitton cryptocurrency handbag or a Mulberry wallet may be more appealing to those considering setting up a cryptocurrency wallet.
Despite the name, there is a lack of brand variation and the wallet experience has seen little improvement over the years. Those created are either inefficient, focused on specific communities, or incredibly expensive.
If the crypto industry wants to build a financial system that provides real-world, customizable value to people, it needs to design wallets that can be used for more than just transactions and appeal to both everyday and core consumers. need to redouble its efforts.
Wallets have trust issues
Cryptocurrencies were originally designed as a global financial system to accommodate people who were cut off from the global economy. Billions of people live in countries with struggling economies, suffering from high inflation rates and poor financial infrastructure. They rely on using cryptocurrencies as a reliable financial asset rather than a speculative asset class.
However, the current ban on crypto exchanges by Nigerian courts and the subsequent debacle with Binance shows that exchanges remain the primary avenue into crypto, and wallets are lagging behind. why is that?
Simply put, the learning curve for wallets is steep. Transaction hashes, gas, nonces, smart contracts, hot/cold data storage, and many other terms are also scattered throughout the interface without much guidance or explanation.
Please see the Opinions section for more information. Cryptocurrency is a completely Lego financial system – and that’s a good thing
The current wallet is aimed at traders who choose to profit from speculation in the industry. And so we end up dominating the headlines about the meme coin craze.
Also, from a security perspective, wallets have insufficient protection measures, leaving users vulnerable. This has led to many hacks and “fat finger” moments, as seen with major companies such as: paxi island and Alamedaresulting in millions of losses.
These incidents encourage users to install additional third-party software to increase the security of their wallets, thereby increasing their exposure to malicious software. This creates a clunky experience that is difficult for the most experienced users in the industry, and even more difficult for beginners.
Cryptocurrency adoption will ultimately become a bottleneck as people are discouraged from using wallets. Onboarding users will either head to even more risky exchanges as we've seen before, or avoid entering the space altogether.
There is a long way to go before wallets are recognized as reliable financial tools for everyday people.
Where can I find the variations?
Beyond design and reliability issues, the fact remains that wallets have struggled to make a name for themselves.
The dozens of new wallets function essentially the same as each other. Additionally, major exchanges have also joined the fray, announcing the launch of their own self-custody wallets. Judging by their custodial track record and mismanagement of user funds, that doesn't seem particularly encouraging.
We are left with a pool of homogeneous wallets that primarily serve to accumulate earnings and supplement numbers.
After all, people want to use financial tools to do everyday transactions like buying groceries or paying rent. By inviting users into the decision-making process, they can contribute to the implementation of the features they want to see in their wallets. Additionally, it provides a means for wallet providers to organically develop a unique brand identity, similar to what we see with DAO and NFT collections.
pave the way forward
Start by reading books from experienced banking and fintech industry players and taking steps to reduce information density, go mobile, and create security measures that are easy to understand and use. Sho.
Combined with the design customizability that cryptocurrencies offer and indeed encourage, we are taking the cryptocurrency wallet experience beyond a technical interface to allow users to intuitively manage their digital asset holdings. It can be rebuilt once and for all.
Achieving this will be a huge step towards improving the DeFi experience. Users no longer need to check Crypto Twitter to see if there is a problem with the application they spent their savings on. Instead, you'll have access to real-time alerts about hacks and scams.
If we want to enrich our wallet experience, we need to move beyond crypto as a pure payment system and start leveraging its ability to act as a social layer. Cryptocurrencies have the power to unite communities based on alignment of interests, and wallets are well-positioned to leverage this social infrastructure.
Martin Goycoolea Scott is a product lead and builder at Zeal. His journey into the cryptocurrency space began in 2017 with the motive of making personal finance approachable and user-friendly. Since then, Martin has spent his time focused on making personal finance and payments easier and friendlier. Martin has extensive experience in the technology sector, having served as Head of Growth at Mach, Office Lead at Revolut, and Head of Product and Growth at EdTech company Eedi.
Don't miss the next big story – join our free daily newsletter.
