The Future of Wallets in Web3

Concept of how crypto wallets will evolve in the forthcoming future

It all started with a simple question

How do Web3 wallets differ from those in Web2?

Web2 wallets usually with centralised service and a single provider. For example, PayPal is the only provider that can offer the service. There is no competition.

The Future of Wallets in Web3

Web3 wallets are decentralised. Many providers can offer the same service. This is because all the providers are connected to the same decentralised network.

1. Increased security

Since there is no single point of failure, decentralised wallets are much more secure than centralised wallets.

2. Increased privacy

Decentralised wallets do not store your personal data. This means that your data is not at risk of being hacked.

3. Increased flexibility

Decentralised wallets offer more flexibility than centralised wallets. For example, you can use a decentralised wallet to store different types of cryptocurrencies.

Research

We started with a high-level view of the user experience for different types of wallets.

The next step was to develop a set of UX flows that we could use to assess the usability of different wallets. Here, we looked at onboarding, sign-in and sign-out, sending payments, and receiving payments.

We then looked at how the various flows worked in practice, and how they matched up to our design guidelines. The results were quite disappointing :(

1. Lack of easy onboarding
2. Complex navigation
3. Too much friction
4. Absence of simplified prompts and clarity of what's happening
5. Usability that just didn’t match up to Web2 benchmarks.

So, what’s the takeaway?

The takeaway is that there is still a lot of room for improvement in the UX of Web3 wallets. However, the newer generation of wallets is starting to deliver better experiences. We planned to lay out an experience of what the future of wallets can be like.

Research and Moodboard

Key Goals

Our key focus is on what an ideal wallet should look like

1. The wallet of the future will be designed for ease of use. It will be user-friendly and easy to navigate. Gamify the use of the wallet and create engaging experiences.
2. The wallet of the future will be designed for low friction and high speed. It will be able to handle large amounts of data and transactions quickly and efficiently.
3. The wallet of the future will be designed to support different use cases. It will be flexible and adaptable to meet the needs of different users.

The Structure

To make this concept video, the general flow of the wallet is made up of 5 main scenes.

Scene 1

The wallet would have a socket layer that would allow users to personalize the look and feel of their wallet. The socket would start with a default socket, but users could insert an NFT into the socket to change the look and feel of the wallet.

Socket Layer of the homepage when an NFT is inserted

Socket layer for network switching modules

Video snippet of NFT in their socket adapting the wallet

Scene 2

Network switching should be as simple as opening a new tab. We attempted to make it easy to switch between different Polygon networks (PoS, Hermez, etc.), for different use cases (trading, gaming, collecting) all within the same environment.

Add a new network for seamless network switching

The user interface has been updated for a more modern look and feel. The interface is now more intuitive to use, and flexible to add custom networks. This will speed up the process of adding new networks and accessing previously saved networks.

Add a custom network in a click

Scene 3

The user may add Trusted Contacts by inputting the Polygon IDs of the contacts into the system. The system will then verify the contacts are who they claim to be.

With Polygon, ID add your trusted contact and make the maximum use of it

Scene 4

Bringing in UPI level simplicity for instant payments. Using Camera QR code scanning or tap scan method for making payments, or sending & receiving tokens.

Sending tokens as easy as Web2 applications

Receiving tokens with QR scanner

Video snippet of seamless transactions taking place

Scene 5

An AI assistant can help you walk through the process of friction and help you make informed choices. It can explain concepts you are unfamiliar with and help you easily onboard. Additionally, an AI assistant can help build trust with users.

Make use of AI assistant to transact tokens with your trusted contacts

End Result

This project is worked on by Ruchit Shah (me) and Abhijit Vinayak to push boundaries and explore the possibilities of a smooth experience.

Video on the future of wallets

Future Possibilities

Even the best ideas will have to survive the test of practicality to make a dent in the marketplace.

In the meantime, we are committed to listening to our users, gathering feedback and evolving the product to meet their needs. We’re always on the lookout for feedback. If you have any ideas on what the next steps should be, please contact me on LinkedIn and let us know your thoughts.