Experts say an improved Web3 wallet will boost crypto adoption

Web3 wallets are becoming more and more important tools to gain wider acceptance in the crypto scene.

According to Luis Osegueda, Head of Engineering at Trust Wallet and Alvin Kahn, COO of Biget Wallet, Web3 wallets are evolving to meet the needs of users.

Breaking Barriers: How Improved Web3 Wallet Simplifies Crypto Usage

Crypto adoption and the Web3 ecosystem have experienced significant growth. Dapradar reports a record high in Web3 app users in Q2. Daily Unique Active Wallet (dUAW) reached 10 million, a 40% increase from Q1 and the highest number to date.

Read more: 16 Best Web3 Wallets in 2024

Despite this progress, the complexity of blockchain technology remains a major obstacle for newcomers. An April report from Preply found that 35% of crypto investors don't feel confident in their crypto knowledge, and 3 out of 5 respondents don't even know what blockchain is.

This is especially because of unfamiliarity with new and complex technology. New users often struggle with certain functions such as chain transfers, pedigrees, gas payments, and decentralized applications (dApps). Alvin Khan acknowledged this challenge in a recent interview with BeenCrypto.

You need some kind of education in exchanging or transferring tokens between chains. Why is this USDT on Ethereum different from USDT on Polygon? And things like that. So, I think more chains add to the complexity,” he explained.

However, both Kahn and Luis Osegueda believe that improved Web3 wallets can mitigate these challenges. Smart wallets, for example, play a vital role in facilitating a smooth onboarding experience, making the crypto ecosystem more attractive to both new and experienced users.

“This is where smart wallets come into play, serving as essential tools to facilitate a smooth onboarding experience and make the crypto ecosystem more attractive,” Osegeda told BeCrypto.

Smart Wallet is a non-holder crypto wallet powered by smart contracts on the blockchain. Improves usability and security features, improves user experience. For example, smart wallets blend the user experience by handling gas payments in a user-friendly way.

The role of smart wallets in bridging the complexities of blockchain

Companies like Trust Wallet and Bitget Wallet have taken the lead in offering improved Web3 wallets. With its Swift feature, Trust Wallet accepts gas payments in more than 200 tokens, eliminating the need for users to carry specific tokens. Similarly, Bitget Wallet features InstantGas to allow users to exchange tokens without having any pre-native tokens.

One of the most important challenges in on-chain transactions is interoperability. Both Bitget Wallet and Trust Wallet address this with features such as account aggregation and chain exchange. Users can manage assets and perform transactions across multiple blockchains without the need for multiple wallets, greatly improving convenience and accessibility.

Ocegueda explained how a smart contract wallet can work seamlessly across different blockchains and platforms. This design allows users to interact with multiple DeFi services and assets, providing access to manage assets and perform transactions on the go. This especially appeals to new and younger users.

“There's been a lot of progress in terms of on-chain aggregation enabled by modern wallets. This means users can manage their assets and transact across multiple chains easily, giving experienced users a seamless experience.”

As Web3 evolves, so do users' wallet expectations. Khan sees users now expecting advanced features similar to those found in the Central Exchange (CEX).

Behaviors such as exchange, finding opportunities, and seeking rewards have become critical. To meet these growing needs, Bitget Wallet includes a variety of functions including smart financial insights and pre-market trading.

Meanwhile, Ocegueda mentioned that smart wallets can be integrated into Web2 payment systems and support different types of payments. For example, users can automatically withdraw crypto payments from Visa or MasterCard wallets when paying with the card.

Improve UI/UX and security measures

User interface and experience (UI/UX) play important roles for Web3 wallet users. Khan admits that the current UI/UX in the Web3 sector needs significant improvement. Oftentimes, Web3 Wallet's interfaces require multiple clicks and significant learning to understand, which can deter new users.

“Web2 has done it very well. And it shouldn't be an excuse why we can't do it on Web3. I think it has to do with certain things, like the ability to add the UI of products from Web2 to Web3,” Kahn commented.

Read more: 9 Crypto Wallet Security Tips to Protect Your Assets

However, both experts agree that security is very important for Web3 wallet users and the security of the broader crypto industry. Web3 wallets have seen enhanced security features such as multi-factor authentication (MFA) and automatic fraud detection.

For example, Trust Wallet SWIFT consolidates the approval process into one, eliminating the risk of unlimited approvals using group execution. In addition to implementing strong security measures regarding the Bitget Wallet, it is adding a $300 million defense fund to protect users' assets and protect transactions.