It cannot be denied that the world is increasingly moving towards a more decentralized version of the internet: Web3. This new iteration of the internet is poised to be trustless and secure, built on the foundations provided by blockchain technology. At its very core, Web3 is all about ownership. While previous stages in the evolution of the internet got as far as content creation, they never allowed users to truly own their assets or for creators to monetize their art. Web3 makes all this, and more, possible.
This revolution in ownership brought about by Web3 can largely be a result of the emphasis placed on digital assets. Digital collectibles, including non-fungible tokens or NFTs, are the watchword of the day and can be used in a range of settings from artwork to ticketing. However, with a lot at stake, it is imperative that their security is uncompromised. This is where Web3 wallets come into the picture… If you are a brand looking to launch your foray into Web3, Web3 wallet development may be a good way to start, giving your users a chance to store your collectibles in a wallet tailormade to the needs of your consumers.
What is a Web3 Wallet?
A Web3 wallet is a wallet that can be used to store your crypto and digital assets in one place. Not only do they provide a secure space for you to store your assets, but they also let you manage your assets and even carry out transactions. Web3 wallet developers build wallets equipped with a private key that is unique to the user and that is not to be revealed under any circumstance. A public key that can be used to verify the authenticity of transactions is then derived from the private key. With this mechanism in place, Web3 wallets can be considered a masterclass in the security of assets.
But how are these wallets different from Crypto wallets? The terms are often used interchangeably and the two even share similarities. However, there are two major differences that distinguish them. For one thing, as the name implies, crypto wallets are generally used for storing cryptocurrencies alone. Web3 wallets, on the other hand, are capable of storing a wider range of assets including non-fungible tokens. Another reason why Web3 wallets were created can be attributed to the increasing need for one to interact with blockchains and decentralized applications (dApps).
The Types of Web3 Wallets
At the most fundamental level, Web3 wallets can be classified into two types on the basis of their connectivity to the Internet.
1. Hot Wallets: These wallets are those that can access the internet. They can take the form of desktop and mobile applications, or even browser extensions. The easy accessibility of these wallets makes them extremely convenient since you can monitor your assets from anywhere in the world! But it is to be noted that this connectivity to the internet also makes them vulnerable to certain kinds of attacks.
2. Cold Wallets: In contrast to hot wallets, cold wallets store private keys offline. This may be done on a physical device like a USB for maximum security. This usually makes these kinds of wallets impervious to unauthorized access and attack.
Apart from this, They may also be non-custodial, where you have complete access to and responsibility for your private keys, or custodial, where the wallets are managed by a third-party such as an exchange.
Developing a Web3 Wallet
With digital collectibles expected to play a major role in the future of branding and marketing, brands may want to be ahead of the curve in building their own NFT platforms or Web3 wallets. Web3 wallet development agencies have a team of experts that can help you build a wallet that is completely customized to your needs. Here are a few steps to get you started.
1. Assess your requirements:
The first thing to do is to identify what your objective is and how a Web3 wallet can help you get to it. Communicate these goals to your agency and outline the goal for the project. This way, you can analyze the market and how other companies are harnessing Web3.
2. Design the UI/UX:
Since Web3 is relatively new to the common user, a simple and easily navigable interface is absolutely essential. While working with an agency, you can also incorporate your brand’s elements into the wallet, elevating your product when compared to your competitors.
3. Develop the backend:
There’s a lot that goes on behind the scenes in a Web3 wallet. Writing smart contracts, for instance, forms the basis for your wallet’s functionality. You can also integrate useful APIs and blockchain protocols that can give your users the complete experience.
4. Test and Deploy:
Once everything has been integrated, make sure that your wallet is extensively tested time and time again. Once every issue has been identified and rectified, you are ready to launch your wallet!
5. Maintain:
The process doesn’t end with deployment. It is necessary to conduct routine maintenance checks to ensure that there are no bugs that can impede performance and the user’s interaction with the application.
Closing Thoughts
The advent of Web3 is inevitable. Recognizing this, several brands and celebrities have begun to explore the possibilities that are opened by the Web3 world. Names like Starbucks, Nike, and Gucci have already tested the waters successfully with their NFT collections. The next step in the integration of Web3 into branding may be to create your very own Web3 wallet. In this regard, a Web3 wallet development agency with a great track record can be a game changer for your marketing strategy.
