Secure Your Crypto: New Wallets Make Web3 Easier & More Convenient
• New tech is making it more convenient for users to use crypto and Web3 wallets
• This includes custodial wallet providers, but these are seen as risky by experienced cryptocurrency users
• Developers are creating wallets that are easy to use but don’t require the user to place all their trust in a centralized custodian
Making Crypto and Web3 Wallets More Convenient
Cryptocurrency users have traditionally used noncustodial wallets backed up by seed words as the most secure way for them to protect their Web3 identity. However, new technology is now making it easier than ever before for users to access their crypto wallets without sacrificing security.
Custodial Wallet Providers
One of the options available to make onboarding more accessible is to use a custodial wallet provider, such as a centralized exchange. While this makes accessing one’s funds much easier, there have been cases where exchanges like Mt. Gox, QuadrigaX and FTX have gone bankrupt due to hacks or fraud resulting in customers losing all their funds. As a result, many experienced crypto users avoid using custodial wallets as they are less secure than noncustodial ones.
New Technologies Developed
Web3 companies such as Magic Labs, Dfns, Kresus, Web3Auth and Immutable have developed new technologies in order to give users both convenience and security when it comes to accessing their wallets. These include solutions such as the Magic software developer kit (SDK), which allows developers to create seedless wallets for users by encrypting an encrypted copy of their private key on an Amazon Web Services Hardware Security Module (HSM). Other solutions include Dfns’ distributed key management system that uses multi-party computations (MPC) over distributed nodes; Kresus’ authentication protocol that uses zero-knowledge proofs; and Immutable’s “trustless escrow” system that ensures funds remain safe while being exchanged between parties without any third party involvement.
Benefits of New Tech
The benefits of these new technologies are twofold: firstly, they allow users access their funds quickly and securely without having to store seed words or private keys; secondly they also allow transactions between multiple parties without involving any third-parties – thus reducing risk factors associated with centralized services like exchanges.
Conclusion
Overall, these new technologies promise a future where crypto and Web3 wallet usage can be just as easy and convenient as email accounts yet still remain secure enough for people trust them with protecting both identities and funds.
