What is Web 3.0?
The current version of the internet or websites is an interactive one that has evolved from the baseline structure. It is called the second version of the internet that allows users to interact with websites in real time and perform activities such as adding comments, making purchases, or creating a personalized timeline, etc.
However, developers and computer scientists are now making preparations for the next version of the internet called Web 3.0 which is called a semantic rendition.
This type of internet brings more autonomy to individual users in terms of control over their data. At the same time, Web 3.0 will allow individual users to participate in an internet that has a decentralized structure.
In this manner, each user will have greater control of their online presence. This next version of the internet will extend monetization options to individuals leveraging blockchain technology such as cryptocurrencies.
What is Web 3.0 Wallet?
Web 3.0 wallets are custodial applications or programs that are designed to support DeFi. These wallets have a technical compatibility with Web 3.0 projects and allow users to work in tandem with various blockchain networks and decentralized protocols.
In this manner, the users who are participating in Web 3.0 projects are able to store, manage, and trade various blockchain-based products such as cryptocurrencies, NFTs, and other types of decentralized assets that are working as the exchange of value or represent digital proprietorship.
Web 3.0 Wallets Vs Cryptocurrency Wallets
When it comes to the conventional design of custodial software, the existing cryptocurrency wallets are a little bit different from web 3.0 counterparts. There are various different types of cryptocurrency wallets that grant a varied level of control for holders such as non-custodial and custodial.
While, traditional crypto wallets have this feature, Web 3.0 wallets may only be available in non-custodial structure that ensures financial autonomy for users.
There are some cases where a Web 3.0 wallet is custodial and uses third-party service providers such as trading platforms to manage private keys for their investors.
Another distinction of Web 3.0 wallets is that they have greater technical compatibility with various decentralized applications and DeFi protocols in comparison to cryptocurrency wallets. Therefore, web 3.0 wallets are able to support a wider variety of cryptocurrencies in comparison to a simple crypto custodian.
How Does a Web 3.0 Wallet Work?
A web 3.0 wallet is based on the tenets of data and financial autonomy for individual investors. On this account, the users who have an account on a Web 3.0 wallet have the ability to own and manage their seed phrases, reserves, and private keys. Web 3.0 wallets allow account holders to generate a seed phrase of 12-24 alphanumeric values.
In this manner, the users are able to access cryptocurrency wallets and private keys as a way to sign-in, secure, and backup their accounts. It is important that the users do not share their seed phrase or private keys with any firm, representative, or investor.
Features of Web 3.0 Wallets
Multi-asset and Multi-chain Support
Web 3.0 wallets usually have the additional feature of offering multi-asset and multi-chain support. In this manner, the account holders are able to access cryptocurrencies from various networks and protocols.
Smart Contracts and Interoperability
This type of wallet account also has smart contract compatibility that allows the account holders to directly interact with the automation protocols. In this manner, web 3.0 wallet holders can access decentralized application, decentralized exchanges, and DeFi secondary trading platforms and more.
Peer-to-peer trading is another important feature of the Web 3.0 wallet. Using p2p transfers users can perform transactions directly with other investors. These transactions can be free of any additional charges as they do not take place via centralized exchanges or third-party intermediaries.
Web 3.0 wallets are stuffed with security features such as encryption technology that defends them against hackers. At the same time, these wallets may detect potential threats and issue notifications to block malicious websites and smart contracts.
Web 3.0 wallet grants pseudonymity to its users by allowing them to operate under a verified but assumed name. In this manner, the platform can ensure that the users are authentic and have the ability to track them in the event of any misconduct or breach of policy. At the same time, it ensures that the users enjoy personal privacy.
Wed 3.0 wallets have various unique features such as simple user interface, convenience, security, financial independence, and customer support. At the same time, Web 3.0 wallets can also exist in various forms such as hardware, desktop applications, paper wallets, websites, browser extensions, and smart contract-based software.