- Mar 13, 2022
Blockchain wallets are a core component of Web3. Wallets are key for user identity in Web3 and give users ownership of data and permissions in apps and smart contracts.
However, the combination of a steep learning curve and the high stakes of mistakes have been obstacles to mass adoption of Web3.
Users have been stuck with either custodial or self-custodial wallets. Custodial wallets are managed by a centralized third-party, which means reduced functionality and control for users. In contrast, self-custodial wallets put users in the driver's seat but are complex to set up and operate. With self-custody, users must remember and protect a 12- or 24-word seed phrase to avoid losing access to their wallet.