So you’ve read but you still aren’t convinced about what makes the perfect crypto ? Good. You shouldn’t be.
There’s a lot more that goes into the perfect crypto than just private key management and security. Crypto wallets are not just “vaults,” they are also meant to be used. They’re there to transact with and they will be a foundational layer for interacting with Dapps. Wallets are similar to web browsers in that what matters is what features the browser supports, not how you access the browser (mobile, tablet, desktop). In the same way, a can be accessed through many platforms, but what is important is what services and Dapps are supported. As the use cases for crypto assets increase, choosing a that works for you will become all the more important.
Security is crucial for wallets, but depending on the use case, there are a host of other considerations that users must balance. Users who simply their crypto will depend more on the diverse support of both assets and protocol forks. Users that prioritize transactions, whether or spending, will need friendly user interfaces and convenient features. Today, the components that define a successful crypto are:
- Diverse asset and token support
- Protocol and fork support
- Airdrop support
- Privacy
- Good user experience
- Multi-party support
Asset and token support
Before choosing a it’s most important to evaluate which crypto are supported. With hundreds of options, finding a that supports them all is not an easy task. Supporting that are built on the same standard (ERC20, NEP5, etc.) is simple. If the supports , it is likely to support all -based . The issue arises in supporting with independent or unique chains. To support new chains, the must be customized to specifically connect with that and even sometimes support a new elliptic curve (for example, ECDSA for and , and Ring Signatures for ). This is the exact reason that not many wallets support Nano, , or . Given that these are built using a DAG (Directed Acyclic Graph) and Ring Signatures, wallets must be specifically and uniquely constructed to support them.
Each protocol also offers special functionalities. Wallets need built-in “native support” for these features. For example, ZCash enables optional, anonymous “shielded” transactions. Wallets for proof of stake (like NEO, Tezos, or Ark) must support staking, baking, and voting for delegates. This problem will continue to improve, especially as various come to capture . But for now, check to make sure that your favorite wallets support the you hold.
One of decentralized technology’s greatest advantages is also one of the largest challenges for designers. Since most blockchains open-source their code, forks frequently occur as others make slight modifications to the code and release new chains with new . Cash and Classic are two examples. At the same time, supporting new, untested protocols introduces potential security vulnerabilities. Successful wallets must be both responsive in adding support for new and responsible in only adding those protocols which have proven security. This largely rests on the strength of the dev team designing the — so don’t overlook that.
Airdrops
Airdrops are another aspect of the crypto industry. Airdrops happen when new forks distribute their coin or to holders ( Cash to holders), when companies want to do promotions, or when platforms transfer their from ICO to protocol (such as when transferred their ERC20 to their own EOSIO standard). Not every supports every airdrop and exchanges aren’t necessarily required to distribute airdrops to the original recipients. Using a self-custody is the surest way of receiving your airdrops, but even then, make sure that the provides the necessary support. If they don’t, you might be left empty-handed.
User Experience
Nothing is worse than using a with a bad user experience. It’s frustrating and with real money on the line, downright terrifying. As crypto assets gain more use cases, the importance of a good user interface will only increase. Users can’t be expected to trust crypto, to use it in their daily lives, if the applications for using it are…well, unusable. User experience is one of those aspects that very much depends on the users’ preferences. So find a with an interface that speaks to you.
Wallets with good user experiences depend on many aspects. Like most successful apps or programs, wallets must be clear and easy to use for both beginners and advanced users. The must work smoothly and quickly. We’re still in the beginning stages of crypto where usability is usually sacrificed on behalf of functionality. Wallets and crypto will only begin to see mass when they .
Privacy
There will almost always be a tradeoff with wallets between usability and privacy. The most user-friendly wallets make use of a central database. A central organization manages and owns the data and users are able to login with just a password and username from any device, interact conveniently with friends, and seamlessly manage their assets. The reality is, the more easily that a user can customize the app and send money, the more personal information it will require. Some of the most convenient apps today — Venmo, Uber, Airbnb — are also the least private. Linking services with your Facebook account make for incredibly easy signup, but the tradeoff is obvious. Crypto wallets can add many ease-of-use features but each has a privacy cost. Some users will want to be able to search directly for their friends’ addresses, automatically split the bill with crypto at their local restaurant, and centralize their crypto account with their other social account. Other users will prioritize anonymity, using only totally anonymous and wallets that require no personal information. But even those wallets that choose privacy will implement features to assist their users, like customizable addresses, address books, and convenient notifications.
Multiple User Support
Many crypto use cases will demand wallets that allow for multiple parties to share access or ownership of the . Whether because the stores shared funds or because the user wants additional levels of security, multi-party encryption and multisig support will continue to be critical. Multi-user crypto wallets are important for institutional as well. Institutions will also be one of the biggest adopters of multi-user wallets. Those enterprises making use of digital wallets will need single-user wallets — for basic operations by employees — and multiple-user wallets — for collaborative operations. These wallets will need to support various access levels which pose an entirely different challenge to developers. Traditionally, multi-user wallets sacrifice heavily on user experience and setting up the is generally very cumbersome. Wallets are still trying to develop multi-party support that is easy and convenient to use.
The Perfect Crypto Wallet?
The reality is, crypto wallets will follow a similar trajectory as any foundational software such as web browsers. Different users gravitate towards different services. Some users prioritize privacy, using a browser like or . Others want convenience, turning instead to browsers like or which centralizes all their Google or Apple services into one, easy to access place. Some crypto wallets will evolve to service crypto collectibles like the video game industry. Other wallets will address corporate needs, providing support for enterprises and supply chains. Other wallets will focus on the user who, above all else, wants a casual, simple crypto experience.
No “perfect” exists for everyone. It is up to each user to choose a solution that works for them. However, we must also continue to hold wallets to high standards, demanding responsible management and development. Because when services host people’s life savings, mistakes are costly.
Crypto services are still incredibly new. Even with the consideration that no “perfect” will exist, we still have a long way to go in developing a host of wallets that can support all the various user demands. Wallets today sacrifice on convenience and usability for security and privacy. Wallets today have critical errors — just look at last year’s , or vulnerabilities found in the — and many more will surely be found. And since the success of crypto depends heavily on wallets, technological advancements must be made. We must demand that wallets are transparent about their tradeoffs. We must demand that wallets undergo third-party security audits. We must demand that wallets take responsibility for their mistakes. Only then will we get wallets that can make decentralized crypto assets a reality.
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Published at Sat, 06 Apr 2019 16:15:05 +0000
