Innovations for Web3 Wallets

On the 3rd of March, Pontem joined industry leaders from Martian Wallet, Ethos, and Blocto at MoveCon to discuss the latest innovations in Web3 wallets.

You can listen to the full recording on Twitter or YouTube.

Meet the Speakers:

• Abhinav Bhardwaj: Chief Operating Officer at Martian Wallet, a non-custodial crypto wallet for Move-based chains that originated on Aptos and recently expanded to Sui.

Martian recently launched a social integration feature with Twitter, which allows users to connect their Twitter username to their account address and perform various supported transactions, including the minting of NFTs.

• Nadia Eldeib: CEO and co-founder of Ethos, a non-custodial wallet that serves as a gateway for users to discover and experience decentralized applications on Sui in an integrated manner.

Ethos is currently developing infrastructure for builders on Sui who are creating consumer apps, focusing on the wallet as an app-oriented experience, and building applications that will be open-sourced and inspiring to developers.

• Hsuan Lee: CEO and co-founder of Blocto, a multichain wallet that focuses on improving the onboarding experience of new users, in addition to offering JavaScript, iOS, Android, and Unity SDKs.

Presently, Blocto supports EVM chains, Flow, and Aptos. However, the team is planning to add support for Sui soon.

Breaking the Bottleneck: Improving Wallet UX for Mainstream Adoption

Despite the variety of Web3 wallets with different features and functionalities, most users still find it difficult to use them as the technical language and complicated processes involved in managing private keys and transacting with crypto assets can be intimidating, especially for newcomers to the space.

Most wallets are built with a technical audience in mind, which is not conducive for mass adoption. Developers are aware of this problem and are working hard to create more user-friendly wallets. However, the limitations of the wallet interface have become a bottleneck for interaction, hindering the development of more robust and dynamic applications.

In response to this challenge, developers are shifting their focus toward creating wallets that serve as gateways to decentralized applications (dApps). The goal is to provide users with a more holistic and streamlined experience, where they can seamlessly interact with various dApps without having to navigate complex technical interfaces.

This will help unlock the full potential of Web3 and create a more decentralized web that is accessible to a wider audience.

From Crypto-Curious to Crypto-Confident: Overcoming the Onboarding Challenge

Onboarding new users to the crypto ecosystem is a challenging task as the complexities of private keys, gas fees, and interacting with smart contracts can be daunting for the uninitiated.

However, with the right approach, it is possible to create an onboarding experience that is both friendly and accessible to a wide range of users. Some of the key considerations for successful onboarding include:

1. Familiarity: Incorporating elements of the freemium model and providing users with the ability to try out applications before committing to a purchase can help with familiarity.  

Adding certain components from Web2 can also help with familiarity, and can make the onboarding process easier and more accessible.

2. Clarity: Providing clear explanations of the resources and objects that users are interacting with, as well as the outcomes of their transactions, is essential. Users should be able to understand what they are doing at every step of the way.

Revolutionizing Self-Custody Wallets: Improving User Experience with Exciting New Features

Self-custody wallets have become popular as people seek to take control of their digital assets. However, the user experience of these wallets has often been less than optimal, coupled with the fear of losing access to private keys.

Fortunately, the infrastructure is slowly improving, and new developments in protocol design are enabling exciting new features. As previously mentioned, an important aspect of enhancing the user experience involves implementing an intuitive design that allows users to navigate the wallet with ease and confidence.

However, despite the implementation of good design, users may still not feel comfortable keeping their entire balance in a non-custodial wallet due to concerns regarding the loss of private keys and the inability to recover their funds.

Fortunately, recent advancements in account abstraction present a significant breakthrough as it enables the development of various useful features, such as social login and recovery that enhance user familiarity with Web3.

Furthermore, gas abstraction eliminates the requirement for users to possess or acquire the native token of a specific chain to pay for gas fees. Instead, developers can abstract gas fees by allowing users to pay transaction fees using a different token.

The utilization of account abstraction yields several other benefits including the ability to perform batch transactions, sponsor transactions for newly onboarded users, and create burnable private keys that enable users to effortlessly execute on-chain transactions without the fear of losing access to their private keys.

Beyond the technical aspects of enhancing user experience, there exists a social dimension that must be considered.

Incorporating social platforms and enabling users to engage with the community and execute familiar transactions such as tweeting and making transactions based on social interactions can imbue a social element that can be incorporated into the overall user experience.

Preventing Cyber Attacks and Scams: Robust Security Measures for Crypto Wallets

Malicious actors are always looking to take advantage of unsuspecting users. To ensure the safety and security of users' assets, Web3 wallets need to implement robust security measures including:

• Blocklists for reported scam and phishing sites:

Creating blocklists for websites reported as scams or phishing sites can prevent users from falling victim to fraudulent activity.

However, there are some drawbacks to this approach, such as issues with governance and mistakenly blocking legitimate sites.

• Native embedded applications within wallets:

Native embedded applications within wallets can reduce reliance on domain names and DNS and increase users' confidence in transaction safety.  

However,  this approach also comes with its own set of challenges, including the potential for creating new attack vectors.

• AI integration:

AI can also play an important role in improving cryptocurrency security, integrating AI into wallets could prompt users of potential dangers or provide assistance with navigating the crypto realm.

For example, AI can be used to screen websites for malicious patterns and assist users in sending transactions or staking their tokens.

Exploring Safe and User-Friendly Solutions for Private Key Management

Private keys are essential for accessing and managing crypto holdings, and their security is of utmost importance. A compromised private key can lead to the loss of all its associated crypto assets. However, managing private keys can be challenging, and finding a safe and user-friendly storage solution can be difficult for many individuals.

Hardware and multisig wallets are secure ways to store private keys. Hardware wallets keep private keys offline and offer additional security features like biometric authentication, while multi-sig wallets require multiple signatures for transactions, providing an extra layer of security.

However, these methods may not be feasible for all users. To address this challenge, developers are exploring solutions such as social logins and multi-factor authentication to simplify the process of managing private keys. These solutions could allow users to access their wallets using familiar login methods, and provide an additional layer of security.

While these features are promising, it's crucial to remain vigilant and consider the trade-offs of each approach. Ultimately, the fundamental principle of "not your keys, not your crypto" must always be upheld.

Harnessing Blockchain Data for Improved User Experience: Possibilities and Drawbacks

Blockchain technology has brought about a new paradigm where data is made public and transparent. To fully capitalize on the advantages of this innovation, developers must carefully navigate the fine line between respecting user privacy and utilizing public data. By doing so, they can create more personalized and tailored experiences that are more relevant to users.

However, there are also potential drawbacks to consider. For instance, the potential for large corporate entities to use blockchain data to target advertising and marketing efforts is a real concern.

Additionally, since everything is recorded on-chain, it can be difficult to maintain anonymity, which can be a serious issue for users. No one wants to reveal their purchases to the world, and without the ability to keep that information private, widespread adoption of crypto payments may be hindered.

Moreover, as digital wallets serve as repositories for user identities, users must remain cognizant of the privacy trade-offs inherent in such transactions. Addressing these challenges may necessitate the creation of novel privacy tools that utilize zero-knowledge proofs, as well as an increased emphasis on user education and control over how their data is used.

Revolutionizing Asset Management: How Move Can Improve Wallets

In contrast to Ethereum's method of storing all data on-chain, Move's resource model takes a more targeted approach, focusing only on storing the most valuable information, such as coins, NFTs, and tokens. This unique approach treats these assets as tangible property, making asset management and transfer easier.

This provides greater security for users, as assets are less vulnerable to hacks or wrongful implementation in smart contracts. Additionally, since transactions are more informative about the resources and assets being affected, users have a better idea of what they're getting into before they commit.

Of course, Ethereum still dominates the blockchain space, with a massive user base and widespread adoption. So it's not surprising that many Move-based wallets are considering adding support for Ethereum.  

However, supporting multiple chains requires a non-agnostic approach to provide a consistent user experience, and the technical debt and resource allocation required for supporting multiple chains can be a challenge.

Nevertheless, the benefits of supporting Ethereum are significant. For one, it allows for easy bridging and cross-chain interaction, meaning that users don't have to switch between multiple wallets.

Interesting Prospects for Cross-chain Interaction  on Aptos and Sui

In addition to the potential for integrating EVM-based chains with Move, Move-based chains can facilitate inter-chain interaction to enhance the overall user experience.

As a leading player building across the prominent move chains, Martian is working on implementing cross-chain functionality features that will provide immense value to users. For example, users with APT in their account will be able to purchase NFTs on the Sui marketplace and the transaction will be completed effortlessly in the background.  

Martian is also working on a notification feature that will alert users when a domain name is available on Sui that matches their APT domain name.

Exploring Interesting Features on Sui

Sui offers a diverse array of innovative features and practical use cases that are sure to enhance user experience including:

• Batching Pre-Approved Transactions:

One of the key features of Sui is the ability to batch pre-approved transactions. This feature allows users to group multiple transactions and submit them all at once, reducing gas fees and improving the user experience.

This feature is incredibly easy to implement, making it an attractive option for developers looking to improve the efficiency of their applications.

• On-Chain Gaming Experiences:

Sui is also well-suited for creating fully on-chain gaming experiences. With a focus on low latency and fluid gameplay, game developers can create immersive experiences that are powered entirely by the blockchain.  

• Dynamic NFTs:

Sui facilitates the implementation of Executable NFTs (xNFTs) and dynamic NFTs. Unlike traditional NFTs, which represent a static asset, dynamic NFTs can change over time based on user actions or smart contract conditions.

This opens up new possibilities for gaming, collectibles, and other applications that require a more dynamic approach to NFTs.

Navigating Platform Risks: The App Store Challenge

Apple has recently introduced strict policies that pose a challenge for crypto-related applications to be published on its App Store. The issue is exacerbated by Apple's reputation for being extremely rigorous in its app review procedure, which can take several weeks or even months to finish.

So what can be done to overcome these challenges? One potential solution is to focus on the mass adoption of crypto, which could help to convince big tech companies to take the technology more seriously.

Another potential workaround is to provide native iOS and Android SDKs, which would allow developers to embed wallet functionality directly into their apps. This approach can be more streamlined and user-friendly, making it easier to onboard new users and potentially get under the radar of Apple's strict review process.

Of course, these solutions are just the beginning of what could be a long and complicated journey toward creating a more open mobile environment for crypto.

However, there are some positive signs on the horizon, including recent regulations in Europe that allow for sideloading of applications on iOS devices. Additionally, initiatives like the Solana phone are exploring new ways to move beyond the traditional gatekeepers and create more open and accessible alternatives.

ABOUT PONTEM

Pontem is a product development platform that enables global financial inclusion through blockchain technology. Pontem is developing infrastructure and decentralized tools for the fastest and most scalable Layer 1 blockchain – Aptos.

The Pontem Wallet is the gateway to the Aptos ecosystem available for Chrome,  Firefox, and iOS. Pontem Wallet users can send and receive tokens, connect to decentralized applications, and explore the Aptos ecosystem.

As a result of its partnership with Aptos, Pontem has developed foundational dApps like the Move Playground IDE, Liquidswap AMM, and ByteBabel code translator.