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What Is A Web3 Wallet?

What Is A Web3 Wallet?

Whenever you hear the term, “Web3,” what’s the first thing that comes to your mind? 

Certainly the next generation of the World Wide Web, or the newly ushered in version of the internet. Web3 is the new phase of the internet age set to revolutionize past phases (Web 1 and 2) in a much improved and decentralized fashion. 

This new internet generation depends much on decentralized applications, blockchain technology, machine learning, and artificial intelligence (AI) to help improve user experience and make the Web more secure. 

More so, with this next tremendous stride of the internet phase, the cryptoverse is also entering a new improved realm as DApps, wallets, DeFi, and other crypto developments are being fashioned to be compatible with this new internet age. And the web3 wallet is at its core, aiding companies and individuals in the management of digital assets. 

This article explores what a web3 wallet is, some types and its benefits.

WHAT IS A WEB3 WALLET? 

You can consider a web3 wallet as the advanced form of a crypto wallet. A crypto wallet is typically used for storing, sending and receiving crypto tokens develop by using web3 sdk. On the other hand, web3 wallets do much more- they also give users access to the web3 space.

On this advanced form of crypto wallets, users can connect with crypto communities, build platforms on the blockchain and transact NFTs. They give users access to multiple DApps which normal digital wallets do not possess and typically, they come with in-built browsers. 

With this type of wallet, transactions are non-custodial- meaning you don’t need any third party interferences such as banks, and you are in total control over your assets. Plus, it’s seamless to create a web3 wallet, scratch those long KYC/AML steps typical to traditional crypto wallets.

BENEFITS OF A WEB3 WALLET 

Web3 wallets give users more flexibility and convenience in transacting and storing their assets. Some of the advantages include:

Convenience: As a user, you have total control over your assets and you can easily manage them as you have access to all their detailed info. It is user-friendly especially to those new to the crypto space and they are easy to set up.

Once you’ve created an account, you can start storing and transacting right away. 

Security & Anonymity: This is one of the features that set Web3 wallets far from other digital wallets. It ensures your personal data stays protected. Thus, it’ll be almost impossible to know the recipient of the address you transact with. 

Also, your digital assets is secure while transacting. Your ID and personal info are secure as most web3 wallets use an encrypted procedure to sign in or sign up. This makes for much less breach occurrences and criminal access to your wallet. 

Here are some of the best web3 wallets in the cryptoverse.  

METAMASK

MetaMask is a wallet built on the Ethereum blockchain and it’s non-custodial. You can easily store, buy, send, and swap cryptocurrencies. It is also featured on Chrome and many other browsers as an extension.  

Want to have it as an app on your phone? You can check out Apple store (for iOS) or Google playstore (for Android).  

Given its foundation on the Ethereum blockchain, users can save ERC-20 tokens. Also, you have access to many decentralized applications, ensuring a secure medium of using on-chain apps and integrating projects. 

Despite being on the Ethereum blockchain, it offers access to other EVM-compatible networks such as Polygon, HECO, Binance Smart Chain, and the like. You are also free to create multiple accounts. 

TRUST WALLET 

This is another web3 wallet in which users can save and access millions of crypto tokens and NFTs on many blockchains such as Binance Chain and Ethereum. Trust Wallet makes it simple to fund your wallet through third party sites such as Simplex, Transak, Wyre, and some others. 

It’s quite compatible with mobile devices and it is easy to navigate and use. Crypto newbies won’t have many problems with this wallet. You only need few minutes to create an account. 

Plus, you can import your MetaMask or MyEtherWallet details if you have a wallet in any of these web3 wallets.

Trust Wallet also features an in-built browser for decentralized applications and users are free to earn more token rewards on their stored assets by locking it up. Some tokens you can stake include Tezos, Cosmos, and BNB. 

For security, a 12-word recovery phrase known only to the opener of the wallet is the key to accessing assets stored on it. Plus, it is available on both Android and iOS and users can decide to use PIN or biometrics to access their wallet. 

However, the major downside of this wallet is it doesn’t support 2FA. Thus, if someone gains access to your wallet, you won’t be alerted as there’s no way of setting up an email confirmation or some warning text message.

RAINBOW

Rainbow is also another easy-to-use wallet. It’s non-custodial, and secure. Plus, users can create an Ethereum wallet and also receive and store NFTs. Rainbow also has an in-built browser. Thus, users can conveniently access the web3 space.

It’s also available on iOS and Android devices. Rainbow also has a swap feature- meaning its users can easily swap multiple ERC-20 tokens for other similar tokens and the best part’s you don’t need to make this swap with an external exchanger. 

In terms of security, it ensures its users are shielded from scam projects as it already has a list of verified tokens that are swappable. Plus, users can store their encrypted private key on the cloud to make for easy account recovery. 

So, if you find it difficult to keep your seed phrase safe physically, you can back it up. What better way to store your digital assets? 

IN CONCLUSION 

Web3 is the next giant stride in the internet age and having a web3 wallet is essential as it helps secure, buy, swap, and store your digital assets. It’ll also give you access to various decentralized applications. This is definitely of more value to you than banks and their centralized financial systems.   

More to read: Why The DeFi Web3 Wallet Is Better Than Traditional Banking

Why The DeFi Web3 Wallet Is Better Than Traditional Banking

Why The DeFi Web3 Wallet Is Better Than Traditional Banking

Folks who are into crypto already know the answer to this. Newbies on the other hand, may still need to be convinced. Your regular financial system has been ripping you off since the day you created a bank account. 

The cliché idea we’ve always had about banks was they save our money and other assets. But when you begin summing up how much they’ve taken from you as transaction charges, interest rates, and many other financial service costs- you’ll realize it’s more of recurrent “rip-offs” than actual “saving.”

They do it so subtly. That’s why many bank users don’t see the value in those little deductions here and there. And unknown to them, a fortune is amassed on the backend. 

However, the new internet phase (web 3.0) comes with a much better financial system that drastically reduces these rip-offs in the cryptoverse. And the web3 wallet is at the core of this revolution. It also gives you a decentralized form of finance (DeFi) as opposed to the regular centralized financial system (CeFi).

In this article, we shall be looking at why you should embrace the web3 wallet over your regular traditional banking system. 

WEB3, WEB3 WALLET, AND REGULAR BANKS     

The new internet generation comes with not just the decentralization of the internet, but of finance. A centralized financial system gives you limited control over your finance, high interest rates on loans, and many costs on accessing other financial services. 

However, with a decentralized system in the crypto space, you don’t need the regular banking system to save your assets and spend money. 

You can now easily buy, borrow and spend digital money (crypto tokens) in online gaming wallet without going through the hassles of documentation, identity checks, and other forms of required regulations traditional banks subject you to. 

With an anonymous account you can carry out many financial activities easily. The web3 wallet is unlike other regular crypto wallets as you can earn from your assets by staking, having access to many decentralized applications, and also being in total control over your digital assets without needing an intermediary. 

HOW IS WEB3 CONCERNED WITH A BETTER FINANCIAL SYSTEM FOR YOU? 

Garvin Wood, the co-founder of Ethereum was the first to mention the term “Web3” and the major reason behind its creation is to lessen the dominating grip of intermediaries within the ecosystem of the internet. With this, there is an aligned interest with cryptocurrency. 

Thus, both crypto and web3 are designed to remove the middlemen or intermediaries from the traditional financial systems. This makes them linked and it also explains how web3 gives you an opportunity to better your financial life. 

Many crypto analysts and enthusiasts believe crypto tokens will be what shall power this new internet generation unlike anything ever seen. 

BEFORE THE WEB3 INTERNET GENERATION

Before the web3 wallet came about with all this amazing technologies we see in our contemporary age today, the internet has been going through phases of development.

As you well know, previous internet generations couldn’t provide such financial bliss due to their limited capacity. Web1 was simply an open, decentralized internet merely used for data sharing, research, and communication. It was mainly used by universities during the early 1980s.

After a while, anyone with a modem had online access. Web1 is considered a text-only medium as interaction with the internet was restricted to reading written info on website and online forums. Users were mostly consumers of content, not producers. 

However, web2 came with more interactive opportunities. Internet speed increased, more images, videos, and audios were now incorporated on the internet. However, the web2 still had a centralized system. It was also characterized by a requirement of a password to gain access to an online account, permissions and data usage. This determined advertisement revenue. 

 After much development, the web3 internet phase finally arrived, granting decentralization across the web and also in the banking industry. There are fewer limitations and now people now have access to artificial intelligence (AI), control over data ownership, better security, ubiquitous access to data, and the like.     

SOME TRADITIONAL FINANCIAL INSTITUTIONS ARE ALREADY EMBRACING THE FUTURE OF WEB3 AND DeFI- YOU SHOULD TOO

Banks and some other financial institutions are already going into the web3 DeFi space as there are many opportunities. This new internet phase grants creators and web users access to a decentralized financial system and many are now seeing the need to store their assets in the web3 wallet. 

In July 2020, a suggestion was made from the Office of the Comptroller of the Currency (OCC) which advised banks to create safekeeping measure for crypto users. This meant keeping users’ cryptographic keys for accessing their wallets safe. 

In a matter of years, web3-inclined banks will definitely spring up, equipped with a decentralized financial system. They may also create their personal web3 wallet, featuring major digital currencies. With the rapid advancement of technology and the development of web3, this will happen very soon. 

The web3 wallet will help banks and other traditional financial institutions expand their reach beyond their traditional platforms. It’ll help them integrate with other online platforms, provide their customers with digital services, and have high-level security in the storage of NFTs, crypto tokens, and other digital assets. 

Financial institutions now have the advantage of putting the connected network of web3 to good use- they can now create an ecosystem of merchants, service providers, and collectors. This helps boost the bank’s reputation as well as the confidence of customers on its security.  

CLOSING THOUGHTS 

The web3 wallet is one such way to break out of the regular financial system. Saving at the bank isn’t really fashionable anymore. Besides, you’ll be doing yourself a disservice leaving your money with the banks. Moreover, they use your money to make more profits for themselves until you need it. 

However, the web3 wallet offers you an opportunity to store, and even earn on your digital assets. The cryptoverse gives you that financial leverage. Will you take it?