Web3-wallet development is not slowing down. Every year, new technology and best practices improve these apps. In this post, we’ll go through ten technologies and practices to be aware of and consider while creating your WEB3 Wallet for cryptocurrencies, smart contracts, Dapps, DeFi, GameFi, and NFT.
Enhancement of Security
Cybercrime is possibly the most serious issue in the world of cryptocurrency, blockchain, and Web3.
Losses from cybercrime in the bitcoin, blockchain, and Web3 markets
Furthermore, cryptocurrency wallets have been increasingly commonly compromised. Thieves took $8 million in SOL and USDC tokens in August.
It is reasonable to expect that all Web3-wallet developers will prioritize security in the future. This encompasses both the security of the wallet (the program used by the user) and the security of the wallet’s internet platform.
GameFi area expansion.
The development of GameFi integrations will be the second key trend in Web3 wallet development design. Since the popularity of such activities has skyrocketed in the last two years, this business is expected to rise from $8.9 billion to $74 billion by 2031 at a compound annual increasing rate (CAGR) of 23.7%.
Data from the August 2022 GameFi market
The majority of GameFi’s growth will be driven by AAA games. Along with multiple other projects, Illuvium, Guilt of Guardians, Star Atlas, Ember Sword, and Otherside (a game by publishers Bored Ape Yacht Club, CryptoPunks, and Meebits) will be released by the end of 2022 or the new beginning of 2023. They will considerably increase market interest, together with the already-launched Decentraland, Axie Infinity, and The Sandbox; once teenagers realize they can make money playing their favorite game, GameFi will be unstoppable.
When this happens, developers of cryptocurrency Web3-wallets will begin rapidly implementing interfaces with GameFi projects, ranging from buying and selling in-game currency to smart escrow contracts that allow users to instantly and safely trade NFTs from one video game for NFTs from another.
Here are a few instances of how AI is being used in Web3 wallets
Creating code for a cryptocurrency wallet application. AI is already assisting in the testing and optimization of application code. The capacity of AI solutions to generate code from scratch is also being explored.
Chatbots and digital personal assistants are being used. You’ve probably met or heard of Alexa and Siri. These AI chatbots are growing increasingly intelligent; as time passes, they will become more lifelike and capable of doing more sophisticated tasks, such as acquiring cryptocurrencies on demand and managing personal finances.
What prevents Web3-wallet from adding an AI capability to generate NFTs, allowing customers to generate NFTs rather than purchase them? AI is capable of producing works of art on par with human artists, as proved by the Colorado fine art competition.
AI is the security watchdog. Here’s another area where artificial intelligence can help. It may be taught to look for “holes” in wallet security, detect strange activity, and thwart hacker attacks in real-time, among other things.
Intelligent Ricardian contracts
Jan Grigg developed the Ricardian contracting approach in 1996. The idea is to have two contracts, one in text format that looks like a conventional contract and one in digital format that only humans can read. A Ricardian contract, in other words, translates the defining components of a legal contract into a format that can be represented and performed in computer code (a smart agreement).
Despite being revolutionary, the concept was not extensively embraced when it was first offered since the technology did not allow for its application at the time. This, however, is no longer an issue. This concept appears to be completely exploitable as a result of the introduction of blockchain technology.
A Ricardian agreement is a sort of smart agreement that is written as text that both humans and machines can read.
A Ricardian smart contract has various advantages:
If there is a disagreement or argument over the interpretation, the parties can take the contract to court, which would be extremely difficult with a traditional blockchain-based smart contract.
A Ricardian contract would be clear to the typical individual who does not know programming or blockchain. They will be able to read and edit it just like any other legally written document.
Ricardian contracts can merge blockchain and smart contract features into traditional legal contracts, resulting in enhanced transparency, lower costs and faster dispute resolution.
One of the most significant hurdles to blockchain’s hopeful future is the vast amount of electricity it requires. Bitcoin and other Proof-of-Work (PoW) blockchains consume an excessive amount of resources to operate, resulting in an abnormally high carbon footprint that hurts the global ecosystem. This is why many individuals and organizations are opposed to Bitcoin’s widespread acceptance. Tesla CEO Elon Musk said in 2021 that the company would no longer accept Bitcoin owing to its resistance to greenhouse gas pollution.
Given the growing priority of the eco-trend, the blockchain and cryptocurrency communities will be forced to accommodate this demand, for example, by abandoning PoW blockchains and connecting Web3 apps. Eric Teden, vice chairman of the (ESMA), proposed a comprehensive prohibition on energy-intensive mining based on the Proof-of-Work approach in early 2022.
For example, the Ethereum blockchain network intends to switch from Proof-of-Work to Proof-of-Stake in late 2022 or early 2023. This would free up massive amounts of PoW-mining capacity, lessening the planet’s carbon footprint.