// Web 3.0
WEB3 Cryptocurrency Wallet Development — What Trends you Shout Know?
// Web 3.0
Web3-wallet development doesn't stand still. Every year there are new technologies and practices that are making these applications better and better. In this article we will talk about such technologies and practices - 10 trends you need to know and consider when developing your WEB3 Wallet for cryptocurrency, smart contracts, Dapps, DeFi, GameFi and NFT.
Cybercrime is perhaps the biggest problem in the world of cryptocurrency, blockchain and Web3. Hackers stole $1.3 billion from cryptocurrency exchanges, various DeFi platforms and individuals in the first three months of 2022 alone, according to research by Schainalicious. The largest number of hackers' victims is from DeFi - 97% of all crypto stolen in the first quarter of 2022 was taken from DeFi protocols, up from 72% in 2021 and 30% in 2020. Moreover, the biggest thefts are usually the result of security breaches and bugs in the code.
Based on this, it is safe to assume that all Web3-wallet developers in the future will pay more attention to their security. And this applies both to the protection of the wallet itself (the application that the user uses) and the protection of that wallet's web platform. Furthermore, developers will probably implement additional protection measures, which would help to keep tokens and users' data in case of hacking by third-party services (cryptocurrency exchanges, smart contracts, bridges, etc.).
The second major trend in Web3 wallet design will be the development of integrations with GameFi. GameFi (a combination of Game and Finance) are blockchain-based games and non-exchangeable tokens (NFTs) operating on the play-to-earn (P2E, play and earn) model. Such projects have become very popular in the last two years and this market is only expected to grow: from $8.9 billion in 2021 to $74 billion by 2031 at a CAGR of 23.7%.
When that happens, cryptocurrency Web3-wallet developers will start adding integrations with GameFi projects en masse - from buying and selling in-game money to smart escrow contracts that will enable players to exchange their NFTs from one video game for the NFTs of another game project quickly and securely. In addition, we are also likely to see integration of cryptocurrencies with platforms such as GameJolt, Origin, Epic Games Store, GameJolt, Google Stadia Twitch and maybe even Steam.
The next trend, which is almost 100% likely to affect the development of cryptocurrency wallets is the strengthening of pressure regulation by regulators and other government agencies. The United States, the United Kingdom, the European Union, Japan, China and many other countries have already announced stricter regulations on the cryptocurrency market. These have either already introduced or planning to introduce new laws and accounting regulations that will oblige all market participants to disclose more data about their activities, as well as strengthen controls over compliance with anti-money laundering, anti-terrorist financing and sanctions enforcement rules.
This would imply for developers of cryptocurrency Web projects mandatory KYC/AIM practices and expanded functions responsible for collecting company and user data. In addition, it may also involve a ban on integration with anonymous tokens and mixers (such as Tornado Cash) allowing to hide details about the amount and transaction counterparties.
Another defining trend in Web3 is data ownership and privacy. In the past and now, our personal data is centrally stored and controlled by large technology companies such as Google, Facebook and Amazon. That not only leads to constant leaks and identity theft but also violates users' privacy rights to own and dispose of their data, from Instagram photos to online shopping data.
We can already see this trend at the legislative level, for example in the European Union (General Data Protection Regulation, or GDPR) and at the app development level (Apple allowed to prohibit data collection by apps in iOS). Therefore, there is no doubt that cryptocurrency wallet developers will also add these features. At least if they intend to operate in the U.S., Canada, EU, UK, Japan and China jurisdictions.
In other words, data privacy is becoming more and more important to users and developers will be responding to this challenge by creating products that will give more control over their users' personal data. It includes the following features:
The design and navigation should become easier and closer to the design of applications in the traditional financial marketplace - buying and selling cryptocurrency must be as easy as transferring money in online banking and PayPal. In addition, the cryptocurrency vocabulary also needs changing - the outside user shouldn't have to learn new terms such as mining, yield farming, stealing, etc., because each new term reduces the target audience's reach.
Perfectly Web3-wallets for cryptocurrencies have to be as simple and easy to handle as Mint, Amazon, SHEIN, Alibaba, Walmart, that we are used to.
This year, I expect the major centralized Web2 players to integrate with decentralized Web3 platforms. We are already seeing the beginning of this process in Twitter, which recently introduced NFT profile images and integration with OpenSea. In PayPal, where they added the ability to buy, sell and transfer cryptocurrencies through a mobile app. Also Walmart, which has not only added the ability to buy goods for crypto but also actively integrates blockchain technology into its business processes and supply chain.
We are going to see much more of these integrations in the future, for example:
Here are a few examples of how you can use AI in Web3 wallets:
Despite being revolutionary, the concept was not widely used when it was first presented because the technology at the time simply did not allow the concept to be put into practice. However, this is not a problem anymore. Thanks to the advent of blockchain technology, which seems to have everything to make full use of this idea.
In the context of blockchain technology, a Ricardian contract is a special kind of smart contract that is written as a textual agreement and can be read by humans and machines alike.
A Ricardian smart contract has many advantages:
Given the growing importance of the eco-trend, the world of blockchain and cryptocurrencies will have to respond to this demand. For example, by abandoning PoW blockchains and related Web3 applications. Which could become not just a private initiative of users and developers, but also a legal norm: in early 2022, Eric Teden, vice chairman of the European Securities and Markets Authority (ESMA), proposed to completely ban energy-intensive mining based on the Proof-of-Work mechanism.
Another way is to switch from Proof-of-Work to Proof-of-Stake, as the Ethereum blockchain network plans to do in late 2022 or early 2023, for example. This would free up huge amounts of capacity reserved for PoW-mining, thereby reducing the Earth's carbon footprint.
The latest trend that will affect Web3 cryptocurrency development is the development of websites and applications using low-code and no-code. Low-code is the creation of software with minimal coding, while no-code is the development of websites and applications without any coding. Instead of traditional "high" coding to create interface or software logic, a drag-n-drop graphical interface is used which allows software to be created quickly and easily by matching function "blocks" from a pre-defined set of templates - like LEGO bricks.
In recent years, low-code and no-code are gaining popularity due to the fact that there are not enough ordinary developers for all and their costs are constantly growing: in 2021 the global shortage of programmers exceeded 40 million qualified specialists and it is expected that by 2030 their deficit will increase to 85 million. Against this background, development of not so "smart" application quickly and for small money is a great solution.
In the world of blockchain and cryptocurrencies, low-code and no-code solutions are still scarce and have rather limited capabilities. However, to create a template Web3-wallet, there are enough of them. Here are a few such platforms that you can use when developing your cryptocurrency wallet: