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The rapid integration of digital payments has positioned web3 wallets as a central component of today's financial ecosystem. In light of Thailand's $13 billion digital wallet initiativeThe question of how to create secure and scalable web3 wallets has become more urgent than ever. Are current web3 wallets really ready for mass adoption and what are the ways to address some of the biggest challenges in this space?
The Expansion of Wallet Use Cases
Web3 wallets, often considered gateways to the decentralized world, are evolving rapidly. Initially, its main use case revolved around storing and transferring cryptocurrencies. However, its usefulness now goes much further. Non-custodial wallets are transforming the concept of ownership and control, allowing users to directly manage their digital assets, tokens, and even nfts. They are becoming essential for DeFi, iGaming, and even governance voting within DAOs.
As these use cases expand, so does the adoption of web3 wallets. And the rapid growth of Bitget Wallet could be a good indicator of this trend. A major factor in this growth has been Bitget Wallet's web2 integrations, which increased its monthly active users to 12 million, and tap-to-win games, which have attracted a large audience by implementing wallet features directly into engaging mobile games. . This has proven to be a major driver of adoption, especially in regions where traditional funding is limited.
Challenges to adoption
Along with growth, web3 wallets face significant hurdles when it comes to mass adoption. One of the most notable challenges is security. A recent report from CertiK x.com/CertiK_CN/status/1742547667828248888?s=20″ target=”_blank” rel=”nofollow”>revealed more than $1.84 billion in security incidents related to wallet vulnerabilities. While they offer improved control, non-custodial wallets also place the security burden directly on users. It presents a high risk scenario, particularly for people who do not have technical knowledge.
Implementing keyless multi-party computing technology is one way to address these issues. The update eliminates storing private keys on any device or server, significantly reducing the risk of hacking. MPC provides a strong security layer without sacrificing convenience by distributing control of private keys across multiple parties.
Another feature to address security issues head-on is a self-custody model. Users maintain full control over their private keys, ensuring that they, and not third parties, are responsible for their assets. This self-custody feature is critical to empowering users as it reduces dependency on middlemen and centralized escrow services that are prone to hacking. Users can trust that their assets are completely under their control, which improves both security and user trust.
Furthermore, incorporating established web2 platforms like Telegram for user onboarding shows an innovative strategy to bridge the gap between web2 and web3. This type of integration lowers barriers to entry, making it easier for new users to transition into the world of DeFi without needing a comprehensive understanding of the complexities behind blockchain technology.
While scaling rapidly to meet growing demand, especially as digital payments gain traction globally, wallets must ensure their security measures remain strong. Ease of use and security are often found in a balance. Wallets that emphasize ease of use may risk taking shortcuts on security. On the other hand, more secure wallets often require a level of technical expertise that can be a barrier to widespread adoption. Striking a balance between these two factors is critical to the long-term success of web3 wallets.
What comes next?
Looking ahead, the future of web3 wallets will depend on their ability to continue to evolve in line with the broader adoption of digital assets and payments. Web3 wallets will need to be scalable and secure to meet the needs of a global and diverse audience. The path forward will likely involve further innovations in security, including broader adoption of MPC technology, as well as efforts to make web3 wallets even more accessible to non-crypto natives.