1. User Demands

Ordinary users have only one demand for Web3 wallets: can it make surfing on-chain more convenient?

Wallets are the entry point to the Web3 world and are high-frequency applications that every ordinary user uses daily, so convenience is very important; it cannot be overstated. (Of course, security is the baseline.)

However, most wallets currently do not perform well enough, and ordinary users must understand many concepts to truly use them, such as understanding private keys, understanding Gas, understanding cross-chain, etc.

Although many wallets have tried to smooth out the differences between different chains at the application layer, providing users with a unified experience, a typical example is the OKX wallet, which aggregates a large number of chains, DEXs, and cross-chain bridges, allowing these operations to be completed in one stop.

However, this does not fundamentally solve the problem, as various concepts based on blockchain characteristics still need to be understood by users.

2. Chain Abstraction Narrative

There is a bold and radical way: that is to completely overhaul the current user experience, as changing seems to have become a ‘paradigm’ for user interaction in the industry.

Currently, the complexity of wallets lies in the concept of ‘chains’; there are simply too many chains now, and more encapsulation should be done at the product level to provide a completely different product experience.

In this scenario, we can consider combining ‘chain abstraction’, which encapsulates the concept of chains, allowing users not to perceive the concept of chains, not to perceive the existence of Gas tokens, not to switch chains or cross chains, and to pay all chain transaction fees with a universal token.

This truly aligns with the common experience of Web2 applications for novice users.

The benchmark product in the chain abstraction track is: UniversalX.

UniversalX shows us what chain abstraction applications look like, rather than staying at the conceptual stage, and it is worth learning from for projects in the Web3 wallet track.

3. Changes in Wallet Paradigms

Chain packaging is a major trend, because the explosion of the number of chains has made the learning cost too high for ordinary users, so the complexity of the chain should be left to the application itself, which is also the source of the ‘chain abstraction’ narrative.

Existing wallets are also doing chain packaging at the application layer, but none are thorough, or rather, they have not yet deeply realized the value of chain abstraction.

Chain abstraction actually fundamentally reshapes the existing wallet paradigm, from ‘multi-chain wallets’ to ‘no-chain wallets.’

This means moving from simple aggregation of multi-chains to underlying packaging of multi-chains, so users no longer perceive the existence of multiple chains.

It should be noted that the impact of this technological innovation is slow; only after the early adopters achieve certain results can it attract the attention of others to this technology, but the first-mover advantage will be lost.

Currently, the Web3 wallet track is in fierce competition, with OKX wallet taking the lead. Other competitors need to try more innovative methods and create something different to form a differentiated competitive advantage if they want to overtake.

Among them, chain abstraction is one of the technological changes that Web3 wallets should pay attention to.

The competition landscape of the wallet track is still uncertain; only products that provide a sufficiently good experience and genuinely meet user needs can develop sustainably and occupy a place in the traffic battle of Web3 entry points.

Image source: ForesightNews

[Disclaimer] The market has risks, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article align with their specific circumstances. Invest at your own risk.

  • This article is reproduced with permission from: (Foresight News)

  • Original author: Yue Xiaoyu

‘From Multi-Chain to No-Chain! A Major Transformation in Crypto Wallets, How to Make It Painless for Beginners?’ This article was first published on ‘Crypto City’