Why is a crypto wallet the gateway to Web3.
- 1. Why is a crypto wallet the gateway to Web3? As we enter the Web3 era, let's begin by asking whether we require a crypto wallet to trade and store our crypto assets. The answer is affirmative. Users require cryptocurrency wallets for market transactions and asset storage. With the advent of DeFi, GameFi, and NFT, cryptocurrency wallets have become an essential skill. As a conduit for the circulation of digital assets and a crucial channel for communicating with users, the crypto wallet is no longer a standalone product but rather the entry point to the Web3 ecosystem. The number of tokens lost on centralized exchanges has increased in recent years. While the CeFi platform generates significant revenues, it cannot protect user assets, leading users to prefer Crypto wallet development for asset protection. To explore the Web3 universe, you must first understand and utilize crypto wallets. In this article, Suffescom describes the crypto wallet, its ecological evolution, and its role in the Web3 ecosystem. 1. What is the crypto wallet? 1.1 The development path of the crypto wallet Initially, crypto wallets were only used for the storage and occasional transfer of crypto assets. Most users preferred depositing their crypto assets on non-custodial centralized exchanges, while users with multiple purchases were likelier to use crypto wallets. Due to the frequent security incidents on centralized platforms and the threat to users' crypto assets, users prefer crypto wallets to protect their assets. With the development of DeFi and NFT, users have begun to interact with on-chain
- 2. protocols via crypto wallets. In addition to enabling users to interact with various protocols, crypto wallets now feature exchange functions, greatly facilitating users' participation in Web3. 1.2 Private keys are the “Achilles’ heel” of crypto wallets The most common cryptocurrency wallets are software wallets, hardware wallets, and paper wallets, which can also be classified as hot or cold wallets based on their working mechanism. A cryptocurrency wallet consists primarily of a wallet account, a public critical account, and a blockchain network, with public keys, private keys, and mnemonics being essential components. Cryptocurrency wallets do not store digital assets; they are merely tools for interacting with the blockchain. These wallets can generate crucial information to support blockchain-based transactions involving the sending and receiving of cryptocurrencies. This data comprises one or more public and private keys, and the address represents a specific "location" on the blockchain that is used to receive the cryptocurrency. Consequently, you can share the public key address with others to receive funds. Nonetheless, you cannot reveal your private key, which grants you access to the cryptocurrency in your wallet, regardless of the wallet type. The private key is the "Achilles' heel" of a crypto wallet and the most crucial component of your crypto wallet that you must safeguard. 2. Why is wallet the gateway to the Web3 world? 2.1 The crypto wallet has a promising future How can the relationship between crypto wallets and Web3 be understood? In the blockchain era, the layout of crypto wallets is the starting point for constructing a value network, a crucial traffic entry point for infrastructure. It is also the initial step in participating in digital asset transactions and other asset-related activities. In the fourth quarter of 2021, Paypal reported a 40% increase in new crypto wallet users and predicted that crypto services would double in 2022. Numerous market manias this year have confirmed this. At the Bitcoin Conference 2022 in Miami, Robinhood officially announced the launch of a crypto wallet, and Opera launched a Web browser and crypto wallet with Web3 integration. In addition, Phantom received $109 million in equity,
- 3. WalletConnect raised $11 million in its A round, etc. As a critical entry point for Web3 projects, the market outlook for crypto wallets is quite impressive. A wallet is a gateway to DeFi and an essential component of the crypto ecosystem. Wallets such as Metamesk and Bitkeep stand out from the crowd of DFI wallets. Solana, for instance, attracted users with its public chain design but lacked an intuitive wallet application. After releasing the Phantom wallet, Solana attracted investment from industry investors, including A16Z and Coinbase, and gained a significant market share. 2.2 The path to digital asset management platforms for crypto wallets With the increase in crypto applications and the expansion of the crypto market scale, crypto wallets will gradually become a management platform that includes a variety of digital assets, generating more service products such as wallet wealth management products, manageable ID documents, one-stop consolidated asset management platforms for daily payment, memorial cards, etc. Thus, users will be able to experience the benefits of decentralized wallets, which will become crucial Web3 product presentation methods. Suffescom Solutions believes that the more elements derived from crypto wallets, the better it is for Web3's development. It may serve as a repository for assets on our chain and a collection of identities when we act in the Web3 world. Numerous daily activities will be associated with the blockchain wallet, and users will be able to browse Web3 using crypto wallets directly. Cryptocurrency wallets are essential to the industry's growth. Wallets are in high demand as the number of users increases. Cryptocurrency wallets are transforming into daily digital wallets, investment/deposit centers, digital identities, Web3 social, chain bridges, and so on. 2.3 Crypto wallets provide a haven for the Web 3 world As the use of wallets grows, there are increasing instances of malicious clusters targeting Web3-enabled wallets such as Metamask. Confiant, a security firm, has discovered a group of malicious activities involving a distributed wallet that permits hackers to steal private seeds and gain access to users' funds via backflushed fake wallets. The next focus will be on Crypto wallet development, which provide high-performance, high-security, low-threshold asset management services
- 4. and an extended platform for global users and developers. It is unclear which cryptocurrency wallet should be used. A web wallet enables you to quickly access your funds and easily conduct transactions if you frequently trade. Let's examine a few of the most popular wallets on the market right now: 3. Ecological analysis of crypto wallets Suffescom Solutions divides crypto wallets into "hot wallets" and "cold wallets" in order to make it easier for you to understand how they function. Hot wallets are wallets that are in any way connected to the Internet. On the other hand, cold wallets are completely disconnected from the Internet. They use physical media to store keys offline, which is resistant to online hacker attacks. Cold wallets are, therefore, more secure for "depositing" tokens. 3.1 Hot wallet ecology 1）BitKeeper BitKeeper is a multi-chain decentralized digital asset wallet. The wallet team's knowledge of the crypto industry and wallets is unparalleled. Wallet, Swap, NFTMarket, DeFi, and DApps have been incorporated into the Web3 ecosystem's gateway. According to publicly available data, the BitKeeper wallet has become one of the most popular crypto wallets in Asia in terms of the user base, revenue size, and valuation ranking.
- 5. Suffescom observes that the learning curve is too steep for newcomers to the Web3 ecosystem, particularly regarding mainnet selection for wallets, asset trading, and other issues. BitKeeper has introduced many distinctive features to lower the user threshold: ● Purchase any asset using any digital currency. BitKeeper enables fast exchanges on DEXs such as Uniswap, Sushiswap, PancakeSwap, etc., as well as one-click cross-chain sales for any Ethereum, BSC, HECO, Polygon, Avax, Fantom, OEC, TRX, and Solana asset. ● Reduce gas costs. Users do not need to pre-deposit the corresponding mainnet tokens as gas fees when transferring or trading via the BitKeeper wallet. Instead, they can use the existing tickets to exchange, eliminating the need for two exchanges and streamlining the process. ● Buy NFTs with ease. BitKeeper NFT Market is an aggregated NFT market with cross-platform search capabilities, support for receiving and transferring tokens, and support for bulk token transfers, enabling users to purchase NFTs using any token on the same chain. Suffescom Solutions observes that capital institutions favor BitKeeper as well. BitKeeper raised $15 million in funding on May 18, 2022, at a valuation of $100 million. KuCoin Ventures, A&T Capital, Matrixport, Bixin Capital, Peak Capital, YM Capital, and other premier institutions participated in the investment. 2）MetaMesk MetaMask is an easy-to-use cryptocurrency wallet that supports significant browsers and iOS/Android. It is the cryptocurrency wallet supported by most browsers and has become the standard for all decentralized applications (Dapps). MetaMask is an "electronic bank account" for users that can manage crypto assets, and it can be used for online and offline consumption, transfers, mortgage loans, and other transactions. It is also a "passport" to the Web3 decentralized network through which users can connect to most blockchain platforms. It differs from the mode in which the keys are stored on the central server, which isolates the storage environment from the site environment in terms of security. Regarding connectivity, an interface is constructed between Ethereum and various DeFi platforms. In other words, it can contribute to construction without synchronizing entire nodes. MetaMask is most likely to become the Google of the Web3 era based on its initial business model, the number of monthly active users, and funding scale.
- 6. 3）Gnosis Gnosis Safe is an Ethereum-based wallet for intelligent contracts that requires the bare minimum number of transaction-signing keys (M-of-N). For instance, if your business has three key stakeholders, you can configure your wallet to require approval from all of them before submitting a transaction request, preventing anyone from stealing the funds. Over the past four years, developing the multi-signature wallet Gnosis Safe has become a crucial component of Web3's infrastructure, safeguarding the digital assets of DAOs, institutions, projects, and individuals. Gnosis Safe users manage assets worth over $64 billion on the Ethereum mainnet alone. 4）CoinbaseWallet CoinbaseWallet is an easy-to-use, secure wallet that is beginner-friendly and has low transaction fees. You can use CoinbaseWallet not only to access cryptocurrencies but also as a stepping stone to explore decentralized networks. Using CoinbaseWallet, you can manage ETH and all of your ECR-20 assets. As it supports BTC, BCH, and LTC, you can use it to receive airdrops and cryptocurrencies, buy and store cryptocurrencies, and engage in fee-free transactions with anyone, anywhere. 3.2 Hard wallet ecology 1）Ledger Ledger is a hardware wallet that combines moderate usability with high security. Ledger, the manufacturer of Bitcoin hardware wallets, is one of the technology leaders in digital currency security, providing dedicated hardware to consumers and businesses. Ledger is a Bitcoin hardware wallet based on smartcards that provide the highest level of security and industry-leading accessibility and manipulation. The Ledger hardware wallet is a multifunctional hardware wallet that stores private keys securely. The hardware wallet requires a software wallet to view the wallet and send transaction requests. It also securely supports the storage of Bitcoin, Ethereum, platform tokens, Zcash, etc. Its projects have provided Github with open-source resources. 2）Trezor Trezor is a hardware wallet that combines moderate usability with high security. Trezor is a high-tech memory for encrypting data. This brand is
- 7. widely recognized as the first and most secure crypto memory. It is a trustworthy brand validated by global digital currency players, with outstanding company records and comprehensive software support. The security model of Trezor is founded on the zero-trust principle, which assumes that any component of the security system can be successfully attacked. Summary It is unclear which cryptocurrency wallet should be used. Suffescom Solutions suggests that a web wallet facilitates convenient access to funds and transactions if you frequently trade. If you hold many cryptocurrencies for an extended time and have no intention of selling them, a cold wallet is an optimal choice. These wallets are not connected to the Internet and are, therefore, more secure against phishing and other online scams. Therefore, before selecting the ideal wallet, you should determine the wallet's technology. When utilizing cryptocurrency trading platforms, it is essential to take precautionary measures.