The idea of Blockchain is quite ambitious: disrupt the existing financial landscape by removing banks as intermediaries from peer-to-peer transactions. Decentralized digital assets provide users with greater freedom to make any financial decisions. But as any revolution, even digital, couldn’t reach the set objectives without arms at hand, web3 has its soft power weapon which can change human lives – a crypto wallet. The introduction of digital assets into various sectors of the human economy and life could be highly beneficial under the condition that they, the assets, are kept in check.
Web3 not only provides users with a bunch of new and exciting opportunities but also shows greater stability in conditions when the rest of the world is tearing in pieces. One of the examples could be the recent update from the fields when the inflation methods and the weakening of US dollar indexes factors into positive crypto market growth. But what’s the point of any cryptocurrency you have if you don’t have a safe and protected place to keep it? Speaking of which, the crypto wallet development industry has also been revolutionized recently, bringing to the market the Wallet-as-a-Service (WaaS) concept. WaaS helps businesses enter the crypto market much easier at a lower cost.
Let’s discuss which trends are likely to affect crypto wallet development shortly and how it affects the crypto industry.
Top Wallet-as-a-Service Trends to Watch in 2023
Increased Crypto Wallet Protection
It’s expected that there will be more implementations of various security features. One of them is Multi-Factor Authentication (MFA), which could come in different ways: one-time passwords, hardware keys, biometrics, etc. Another way to enhance security is the syncretic approach combining the best practices of Multi-Party Computation (MPC) and Account Abstraction (AA). Also, the growth of decentralized identification technologies, enabling complete anonymity in web3, adds to the increased crypto wallet security as it enables transaction validation without revealing any sensitive data.
Deactivation of Crypto Wallet Usability Minefields
Originally, crypto wallets have not been very user-friendly. But when the Wallet-as-a-Service steps in, it unified the best practices of usability cases. The developments we can already witness are the following. Facilitated onboarding helps to set up a crypto wallet and might include interactive tutorials, step-by-step instructions, one-click transactions, seamless integration with exchanges, etc. Personalized modifiable dashboards help users get better control of their finances and make the user experience more enjoyable. Community growth features help users get social interaction to the next level: interact with friends, send cryptocurrencies through chat platforms directly, etc.
Blockchain Network Interoperability
Originally, each digital asset required a separate wallet to handle it, but the wallet-as-a-Service approach is changing that. The main trend in WaaS development is the introduction of unification when one wallet allows users to access various cryptocurrencies in different blockchains. Wallets that support multiple blockchain networks made it possible to transact across several cryptocurrencies. Such cross-chain transactions will be safe and quick.
The rise of Wallet-as-a-Service is bringing revolutionary changes to the crypto wallet industry. In addition to the mentioned above tendencies, WaaS makes crypto wallet development affordable and fast which helps businesses effortlessly enter web3. Moreover, due to the increased user-friendliness, crypto wallets can offer an enjoyable user experience similar to their web2 analogs which could facilitate the traditional banking features integration. In the avant-garde of WaaS development are the startups offering Wallet SDKs: Spatium, Banana Wallet, Cybavo, etc.