Why are blockchain devs ignoring non-custodial cryptocurrency wallets? This is a huge injustice and here’s why…
Do Unhosted Wallets Dream of Network Fees?
Being in the middle of development I noticed something that I can’t get out of my mind. Why are L1 devs ignoring non-custodial cryptocurrency wallets?
And I don’t mean L1 wallets that are basically created by and for a specific blockchain and a single token. I am also not including projects that don’t allow you to access your private keys. Just take a look at any dev who’s working on a multicurrency wallet and you’ll know what I mean.
These developers do a fantastic job of incorporating each new blockchain into the system and integrating its features into the user interface. It ain’t that hard when different blockchains are built alike, but when it comes to Cardano or EOS devs have to disassemble every small feature just to send a working transaction.
Not to mention the complexity of the DeFi Ecosystem or NFTs, and lots of hardcore technopunk documentation only the core team can understand. Having pre-made libraries helps, but since each new blockchain project adds its own unique interaction logic which drastically alters how things operate, most people can’t follow. New concepts in the blockchain industry emerge rapidly, but documentation and standards are losing the race.
And that brings us to the topic of today — what do good developers who make others people’s lives easier get? They make an entry point into the ecosystem for anyone, and they build the best UI, but they still need lots of marketing and additional monetization to keep ongoing. The role of multicurrency wallets in the adoption of cryptocurrencies is crucial, in the way that they provide the initial contact with the cryptocurrency world. They get no reward from the system they benefit.
19 times more people started using MetaMask in 2020–2021. That’s an astounding number even if we count for all fake and one-time accounts, but not a single network rewarded MM for bringing more people.
So, what are the ways crypto wallets can monetize to keep the team operational? There ain’t many options:
1. Either through a subscription or a one-time payment.
Right now, the only existing paid wallets are hardware ones, and if we want to add the same price tag to a software one it has to be truly extraordinary.
2. Through a transaction fee
The most popular option for now, but it is not user-friendly. Usually, wallets have a couple of payment and exchange partners to get a fixed bonus for the number of transactions these partners receive. The more traffic you provide — the better bonuses you get and more leverage to increase these bonuses you have. It may sound alright, but the end-user gets no benefits from it at all, and devs are struggling to keep the operations going.
It’s more natural for a wallet that supports numerous blockchains to also provide access to numerous exchanges and payment providers. However, this method is only advantageous to the user. This will only lead to all wallets being owned by exchanges and that would get us nowhere.
Why don’t we make it easier? Add one feature to your L1 project — come up with an entry point reward based on % for every transaction for every user coming from the said entry point. It’s a primitive referral system, but it will reward those, who help your ecosystem grow.
So if you want to discuss it, follow me on Twitter, and let’s create a better world of cryptocurrencies together!
