The Good Tech Companies - Choosing Wallets for Decentralized Applications

Episode Date: February 14, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/choosing-wallets-for-decentralized-applications. Discover how EVEDEX blends social logins, embedded wallets, and Account Abstraction to make decentralized apps accessible without compromising security. Check more stories related to tech-stories at: https://hackernoon.com/c/tech-stories. You can also check exclusive content about #decentralized-wallets, #social-login, #account-abstraction, #evedex, #embedded-wallets, #crypto-onboarding, #web3-ux, #good-company, and more. This story was written by: @evedex. Learn more about this writer by checking @evedex's about page, and for more stories, please visit hackernoon.com. Social login plays a key role in lowering the entry barrier for new users. Traditional crypto wallets require users to store seed phrases, install extensions, and connect hardware devices. Social login allows users to instantly enter the platform without memorizing complex seed phrases.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Choosing Wallets for Decentralized Applications by EVEDEX For modern blockchain applications, it's crucial to balance ease of use for experienced users with accessibility for newcomers. One of the first challenges for beginners is selecting and creating a wallet. Wallet interaction must be simple enough to maintain high conversion rates while preserving blockchain score advantage, decentralization, without compromising user experience, UX. Two audiences. Crypto enthusiasts and regular USERS when developing blockchain solutions, it's important to account for varying user experience levels. In the context of

decentralized exchanges like EVEDEX, two main audiences can be identified 1. Crypto enthusiasts, cryptans. Users who are already familiar with blockchain technology, have experience with cold wallets and value autonomy and decentralization. 2. Regular users, normies. Those who want to trade and interact with decentralized financial instruments without having to dive into the technical aspects of blockchain. For the second group, social logins and embedded wallets are especially important, as they make the onboarding process and platform interaction as seamless as possible. Why is social login important? Social login plays a key role in

lowering the entry barrier for new users. Traditional crypto wallets require users to store seedphrases, install extensions, and connect hardware devices. This is complicated, especially for those just starting their journey in Web3. EVEDEX offers a built-in wallet with social login, allowing users to sign in via Google. This reduces the likelihood of losing access and makes the platform more convenient for a broader audience. Advantages of social login Registration takes only a few seconds. No need for a seed phrase. Access to the account via multiple devices. More users can try to use DeFi without technical difficulties. The social login concept allows users to instantly enter the

platform without memorizing complex seed phrases or going through lengthy registration processes. This is particularly important for newcomers encountering DeFi for the first time and who might be discouraged by the complexity of traditional wallets. By simplifying the login process, we lower the entry barrier for new users and grow the potential audience, allowing more people to explore decentralized finance effortlessly. Why is wallet choice important? One of the main problems with modern blockchain solutions is the complexity of the first experience for new users.

To start using decentralized applications, one must learn many new concepts, such as private keys, transactions, fees, and security. This discourages less technically inclined users and significantly reduces engagement. Therefore, choosing the most suitable wallet technology is not just a matter of convenience but also a way to grow the audience and improve the exchange's conversion rates. EVEDEX is a decentralized exchange focused on providing an interface similar to traditional centralized platforms. To achieve this goal, wallets must combine decentralization, user-controlled funds, with Web2-level convenience. Key features include low entry barriers, sponsored transactions or fee

payments in non-native currencies, account recovery, two-factor authentication, 2FA, support, cross-device account access, embedded wallets. The fastest way to implement these features is through wallets as a service, WAAS, solutions like Magic, Fireblocks, or ThirdWeb. Advantages of WAAS quick integration. Providers offer ready-made solutions with social login and 2FA support. Users do not need to understand blockchain technicalities, the wallet is ready to use immediately after registration. Additional security, key storage is distributed, and the provider does not have direct access to the user's funds.

Additionally, two-factor authentication significantly reduces user risks. Ease of use. Users can quickly start using the wallet without complicated setup or seed phrase storage, relying only on social networks or email. Limitations of WA's limited blockchain support. Some providers only work with specific networks. Lack of flexibility. Account recovery is implemented strictly according to the provider's mechanics. High costs. For large user volumes, WA services can become prohibitively expensive. Geographical restrictions. Providers may block access for users from certain regions.

Account abstraction. Ah, account abstraction is a technology that allows the use of smart contracts as wallets. Unlike classic wallets, which rely on private keys, smart contract wallets provide virtually unlimited flexibility in implementing interaction logic. Currently, the technology is actively developing on EVM-compatible blockchains, thanks to the ERC-4337 standard, which enables AWA without changes to Ethereum's base protocol. However, this increases the complexity of the solutions architecture. For implementing a

wallet with account recovery and two-factor authentication, the optimal approach is to choose a standard open-source smart account wallet implementation that is well-tested and audited. Advantages of Awe for users' flexibility and customization. The ability to tailor wallet logic to user needs and preferred verification methods. Decentralization and full asset control. Eliminates risks of account blocking or access restrictions due to the absence of databases and centralized service controls. Access recovery through predefined mechanisms. Useful in case of key loss or other unforeseen circumstances. Disadvantages of AAH, primarily for projects, not users, complexity of implementation.

Integrating AWA with 2FA and recovery mechanisms requires significant amounts of resources. Early development stage. It is possible to encounter bugs as the technology is still evolving rapidly. Need for AWA infrastructure deployment in new networks. Implementation in EVEDEX. EVEDEX is actively exploring hybrid solutions for maximum user convenience. One key aspect is the integration of account abstraction for enhanced security and user interaction with the platform. The platform offers embedded wallets with social login while maintaining decentralization. This allows traders to use ADEX with the ease of a CEX without having to trust a centralized entity.

Additionally, EVEDEX is testing the possibility of sponsor transactions, enabling users to pay fees in project tokens, as well as flexible access recovery mechanisms without handing over private keys. User INSTRUCTIONSEVEDEX allows users to choose between different interaction options. 1. Social Login, Recommended for Beginners. Sign in via Google, quickly create an embedded wallet. Secure account with 2FA. 2. Connecting an Existing Wallet. Use Metamask, Trust Wallet, Ledger, and other wallets. Full control over assets. requires seed phrase storage, hybrid solutions and innovative approach is combining embedded wallets with account abstraction. In this model, an embedded wallet is used to create and manage a smart contract,

a wallet. This solution allows for seamless integration of social login and 2FA functionality while retaining the ability to implement custom logic at the A wallet level. Conclusions Choosing the right wallet for decentralized applications requires balancing user convenience with decentralization principles. Embedded wallets provide quick setup and ready-made solutions but may limit flexibility and increase costs. Account abstraction offers extensive possibilities but demands significant effort during implementation. A hybrid approach enables easy account recovery, social logins, and additional features without

sacrificing wallet functionality. EVEDEX is betting on hybrid solutions, integrating advanced technologies into OUSAR-friendly interface to offer the best of both worlds. CEX-like convenience and DEX-level security. Thank you for listening to this HackerNon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.