Although the potential of cryptocurrencies is gigantic, its adoption seems to be hampered by a user experience still too little optimized. Indeed, crypto wallets are the gateway to this new decentralized universe. Whether to buy cryptos, exchange NFTs, or even access a metaverse, all users must have their crypto wallet.
However, for a new trader or a new artist who decides to embark on web 3, crypto wallets, due to their poor optimization, force more than one to give up. Let’s find out why and how wallets can be improved to finally significantly advance adoption:
Why a crypto wallet and how to improve it?
First of all, it is good to point out that a crypto wallet is essential for anyone wishing to browse the web 3. In order to buy cryptocurrency, or NFTs, to access metaverses and other blockchain technologies, the user must create a crypto wallet.
A first major problem is already emerging for the newcomer. The number of different wallets available and their different properties (self-custody, hot and cold wallet…) are already a first obstacle to this mass adoption. Indeed, this need to educate yourself about technology is already a counterproductive argument for many. Given the fact that the wallet is essential, the gateway to web 3 is therefore closing.
“One of the biggest issues is that centralized services like Paypal, banks and others will probably market their services as wallets, some version of hot custodial wallets, but of course we know those are simply not not sufficient. To properly use a hardware wallet or even a hot wallet, you need some understanding. It’s not too difficult, but most of us have to make mistakes along the journey.” says branding expert James Fox to Cryptonews.
Let’s explore the essential features that will need to be improved to make crypto wallets more accessible:
1 – Best interface
Obviously, the interface is an essential point in the adoption of a technology. A new user arrives on a crypto wallet and discovers thousands of different cryptos. But the most important aspect is thatInternet has succeeded in establishing itself as a technology in our society thanks to simplified identifications requiring only a username and password.
In contrast, the crypto wallet requires creating and storing a seed-phrase of 12 or 24 words. Especially since the loss of this seed-phrase would lead to the total loss of funds available on their wallet. To the extent that we live in a society that lives at high speed, this difficulty and the time required to create and navigate via a wallet is a real barrier to adoption.
The company is moving towards a practical and simplified world and the crypto wallet integrates towards an opposite direction. This trend clearly runs counter to mass adoption. In order to become a technology adopted by the masses, wallets must become at least as easily accessible as other technologies such as the internet. Since we operate by comparison.
The wallets must then be able to be used by anyone. And not understanding the technology should not be an argument for the user to give up.
2 – Interoperability!
Have fun
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Discover the true meaning of permissionless interoperability
This is crypto 🤝
— Bryan 🌶️ (@bryan_oogy) December 20, 2023
Maxi Bitcoins think that only Bitcoin will remain. If this is not yet news, it is clear that the fact that thousands of crypto projects are flourishing every day does not help matters and does not make things easier for newcomers.
Indeed, crypto wallets will then absolutely have to become interoperable. Due to the resurgence of different blockchains on the market, crypto wallets must make it easy to navigate between them. However, this is not yet the case. Even if interoperability is a subject that comes up more and more and is at the heart of the development of the industry, optimization is still far from being completely present.
2 – Privacy, security and trust
No one wants to have their money stolen or lose all those tokens because they were sent to the wrong address. The average user must be able to have trust in technology. However, the user always has this risk and therefore this fear to lose one’s assets, by entering the wrong address for example. This possibility which hovers over the user is an undeniable obstacle.
“We need education and we need UX design in collaboration with people who really understand the issues at a technical level. Right now, the average retail investor is better off with an ETF. When it comes to money for everyday purchases, we have a way to go if we want to prevent customers from losing funds or getting scammed IMHO.” adds James Fox.
It is in this context that security and privacy offered by the wallet are also essential. This time, the industry is being held back by many malicious people who are full of the most ingenious ideas to steal funds from unfortunate users.
Whether through simple hacking or the use of defective smart contracts, hackers take advantage of the lack of understanding and security of crypto wallets. Besides being the entry point into web 3, they can also be the exit point. Privacy is essential today and seems to be starting to evolve thanks to ZKPs and DIDs (decentralized identity protocols).
“I think we need a way to authenticate identity that is secure, anonymous, decentralized and completely confidential. Of course, biodata is controversial, but somehow we need to be both secure and authenticated without censorship, without data exchange, and without surveillance. “ concludes James Fox.
In short, these flaws in crypto wallet optimization also make it a risky tool for the user. It is essential that the user can fully trust the technology and this is still far from being the case.
What solutions for the future?
At a time when we can pay via telephone, or Apple Watch, the technology of Near-Field Communication (NFC) should be essential in the evolution of the crypto wallet. This technology allows contactless payment, for example. No more need to enter codes, have a credit card… Nothing could be simpler to make your purchases.
This is the kind of optimization and technology that the wallet badly needs. The solution is to push ordinary people to use technology without them understanding it and without them realizing it.
Of course, a Bitcoin ETF or crypto adoption by a major company couldn’t hurt. But if the wallet remains as it is, the user will not stay very long. Why pay in crypto if it’s a lot more laborious than with a credit card ? In the end, users don’t care much about decentralization if it doesn’t make their lives any easier.
This is why we arrive at an essential aspect which must also come into the equation: intrinsically understanding the advantages of crypto technology. Thanks to decentralization, blockchain allows for fast, inexpensive transactions that do not require going through a third party. This inclusion and financial freedom should simply be the major assets of crypto wallets.
Web 3 wallets are the weapons to destabilize the web 2 giants. Whether it is Google, or Meta, it is necessary to regain control. The future crypto wallet must therefore still be better than what web 2 offers. And at present, the crypto wallet is still far from meeting these expectations.
Source: Original
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