Getting a wallet is one of the first steps in learning about web3, cryptocurrencies, and blockchain technology. A crucial aspect of blockchain technology that we must know is getting a wallet.
Consider this article to be the first lesson in your web3 education because it will teach you everything there is to know about a web3 wallet. The many wallet varieties, their benefits and drawbacks, and alternative web3 wallets will next be discussed.
What is it? – Web3
Gavin Wood, a co-founder of Ethereum, first used the term “Web3” to describe the “Post Snowden Web” in his paper Into a Modern World. He talked on the need for a system of zero-trust interactions that gives web users authority over their data.
Web3 refers to the blockchain-based iteration of the internet. One of the guiding principles of the internet generation is decentralization. Web3 also aspires to provide users of the internet more authority and control over their data.
Web3 aims to improve the web2 version of the internet that is currently available. Payments and identities are only two ways that Web3 will enhance the internet. Decentralized apps, often known as Web3 applications, run on distributed networks like blockchains (DApps).
Given how strongly reliant on bitcoin web3 is, the two are intertwined. Users can receive bitcoins as a financial incentive to participate in a variety of DApps. Users can get paid for using a platform, unlike the web2 platforms that we are aware of.
What Is a Web3 Wallet?
A web3 wallet is a type of online wallet that may be used to store digital assets. Among these digital assets are the non-fungible tokens (NFTs). A web3 wallet, also referred to as a “crypto wallet,” is a tool for engaging with Dapps and getting access to the web3 market.
The owner of the wallet can store their own digital assets alone in Web3 wallets, which are typically non-custodial wallets. The absence of a third party also renders KYC/AML unnecessary, safeguarding the privacy and anonymity of wallet owners.
It simply means that the wallet's owner has total command over it. On the other hand, users cannot use custodial wallets, which are frequently protected by centralized institutions like controlled exchanges.
The owner of a web3 wallet development is responsible for keeping the wallet secure. Each web3 wallet development has its own private keys or seed phrase that can be used to access the wallet. Other capabilities of a web3 wallet include the exchange of tokens and the sending and receiving of digital assets.
The user's identity in Web3 is represented by the web3 wallet that is used to communicate with the Dapp. This enhances the authentication process for email and normal password logins. Web3 wallets are anonymous, although users have the option of publicly associating their identify with a wallet.
