With the rise of blockchain and decentralized technologies in general, a new concept of money is evolving. The nature of money is changing, embracing new forms and types. It’s worth mentioning that the crypto payments in the blockchain are not similar to the traditional ones. Blockchain doesn’t need banks, credit institutions, or any other intermediaries to control the financial life of individuals.
The blockchain revolution brought peer-to-peer transactions to a new level: anonymous, secure, and transparent. Moreover, a financial transaction in a decentralized environment is not exactly a traditional money exchange operation.
For example, if you have 100 euros, you can buy 100 dollars and keep the change in the shape of paper money or coins. However, if you want to buy Bitcoin with Ripple in web3, you overwrite the old ownership right with the new one. It means that crypto itself never leaves a block on the blockchain.
Quite complicated, right? Equally cumbersome are crypto wallets which at the same time act as entry gates into the blockchain. Luckily, today we are witnessing a new trend in blockchain development.
Disruptive encryption technologies allow better user experiences and frictionless shifts for technologically not-savvy users from web2 to web3, which means more user-friendly wallets. One of the brightest examples of top-notch technology adaptation is Wallet-as-a-Service (WaaS) - a powerful tool helping businesses to build engaging crypto wallets.
Increase of Crypto Payment Adoption
The development of convenient, scalable yet secure wallet infrastructure breaks the limitations of web3 wallet mass adoption, providing more people with immersive blockchain financial experiences. Based on the data from Blockware Intelligence, the percentage of the world population to adopt crypto payments will reach 10% by 2030.
According to Statista, in 2023 the overall daily crypto trade volume reaches 1 billion US dollars. And this is not all. More and more companies are accepting crypto as a payment means. Such brands as Starbucks, Subway, Whole Foods, AMC cinema chain, etc. already allow their customers to pay in crypto. Other companies, such as Tesla, eBay, etc. claim to start accepting crypto as a payment means soon.
This crypto adoption rising curve is good, but the most important question is how to keep the digital assets protected, especially in web3 when there are no regulators like banks or other financial institutions. The load of protecting digital assets is solely on users’ shoulders.
Sounds overwhelming, but things are not as bad as it seems. WaaS enables the development of user-centric crypto wallets. At the same time, they are user-friendly, convenient, and secure, which is especially important amidst the web3 raging sea of anonymity, zero trust, and hostility.
Non-custodial Wallets Powered by WaaS
Now, we are getting closer to the question of what businesses should do if they want to tap into the potential of web3. First of all, they should advocate for non-custodial wallets for their customers. This will be not only an investment in their brand growth, but also a possibility to build brand loyalty and increase customer engagement. Anyway, what is a non-custodial wallet, and how businesses could facilitate their mass adoption?
Understanding Non-custodial Wallets
The main benefit of traditional non-custodial wallets is the full ownership of digital assets they give to users. But at the same time, they are inconvenient for people who are not technically advanced.
Traditional non-custodial wallets don’t provide a smooth user experience in terms of private key management, seed phrase, public addresses management, and network switching, etc. And for a long time, those were the biggest obstacles preventing users from investigating versatile blockchain opportunities.
Crypto Wallet-as-a-Service in a Nutshell
Wallet-as-a-Service is a tool providing businesses with pre-built, easily customizable modules facilitating the development of web3 crypto wallets. At Spatium we are providing our customers with three main modules for WaaS non-custodial development: Wallet SDK, Wallet Cloud, and Wallet UI.
The composition of these three elements enables businesses to build user-friendly and highly protected wallets for their customers at low costs. Moreover, wallets powered by WaaS drastically decrease time to market. Instead of the 50–60 weeks required to develop a non-custodial wallet from scratch, we offer the development of secure and reliable non-custodial wallets in less than 10 weeks.
The most important part of the digital Wallet-as-a-Service paradigm is the encryption core - Wallet SDK, powered by Multiparty Computation (MPC) technology. It’s a client-server module responsible for the cryptographic part, MPC algorithms implementation, and blockchain-specific cryptography. The latter includes the generation and sync of secrets that are substituting the private key.
Also, Spatium Wallet SDK generates public addresses for cryptocurrencies, signs transactions, and initiates biometric backup. Let’s discuss what are the main benefits Spatium Wallet SDK brings to businesses.
5 Key Benefits of Spatium Non-Custodial WaaS SDK
1. Enhanced Security
MPC encryption implemented in the SDK core enables the keyless co-signing of crypto transactions. Now users don’t have to worry about how safe their private keys are because instead of the private key, two secrets are activated and generate a phantom key requested to sign the transaction. One secret is located on the user’s device and the other is placed on the server of the service provider. Moreover, Spatium unique MPC implementation puts the user at the center of any wallet activity. Each time the second secret needs to be activated, a user has to confirm this operation.
2. Full User Ownership
Non-custodial wallets differ from custodial ones by the fact of who is in custody of the digital assets stored there. Of course, in the case of crypto safety, the only secure option is a non-custodial solution because the blockchain is a network where you cannot trust anyone. Non-custodial wallets are user-centric, providing wallet owners with full control over their digital assets: tokens, crypto, NFTs, etc.
3. Biometric Backup
Spatium Wallet SDK is a pioneer in anonymous biometry services implementation to make non-custodial crypto wallets engaging and convenient for end-users. Our WaaS SDK biometrics enables quick wallet recovery, gives access to the second secret during the transaction co-signing procedure, and allows facilitated shifts among other devices that belong to the user.
4. Multi-chain Support
Spatium Wallet SDK is developed to be blockchain-agnostic, that's why the wallets built on it may work with any blockchain. For example, Spatium supports all main blockchains right now: Bitcoin, Ethereum, Polygon, Everscale, Litecoin, Solana, Ripple, etc.
5. Affordability
Spatium offers a flexible pricing policy toward its customers. Start building with Wallet SDK for free, and pay for the license once it’s activated. The activation of the license happens at the moment when the wallet app is uploaded to the App Store or Google Play. You can get several licenses: for Kotlin, Swift, and TypeScript based on the goals of your product.
Conclusion
The world has always been changing, and that’s one of its strongest sides. Right now we are witnessing the complete transformation of the world financial system and blockchain technologies play one of the major parts in it. Web3 brings transparency and decentralization in addition to multiple brand-new ways of financial interaction between people without any intermediary assistance.
At the same time, for businesses who would like to enter web3, it’s vital to partner with an experienced and trustworthy player in the field of crypto wallet development. The quality of the crypto wallet affects customer engagement and opens up the bug possibilities for their mass adoption.
Having an idea in mind, let us know about it, we know how to navigate it. Drop us a line to get to know all the details about Spatium WaaS products.
