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Industrial Research - Crypto Wallet

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Recently, I joined the SAV (Scale Asia Venture)'s squad program. One assignment is to pick an industry and do industrial research. The industry I picked was Crypto wallet. In this blog post, I would like to share my high level analysis on the crypto wallet industry:

  • Crypto wallet provides a secure way to manage your private key. And the private key has three major functionalities
    • Represent your identity in Web3
    • Proof of data / asset ownership
    • Allow you to interact with dAPP / blockchain
  • In terms of competitive landscape, there are 140+ crypto wallets as of 2022, in different chains and with different focuses. Most of them are doing similar things and share similar UIs. It's an area both startups and crypto giants want to access, as crytpo wallet is the entry point of Web3.
  • Currently, there's no a single wallet that can satisfy most needs. Meanwhile, it's hard to build competitive barriers for new comers, because all the data are stored on chain. The only barrier I can see is the network effect created by fast product iteration speed. Crypto wallet like MetaMask has already gained its network effect.
  • Security remains a concern and we should expect more Crypto wallet solutions focusing on the security aspect, while preserving usability.

Finally, for more details, check out my slides here.