When discussing the impact smart wallets have on Web3 adoption, the focus is often solely on users and the onboarding experience. However smart wallets provide an important service and solution for another key audience: Web2 developers, builders and companies looking to enter the blockchain industry.

Achieving mass adoption does require more seamless and user-friendly Web3 products, but it also requires the involvement of builders and players in the Web2 space - who already have the mainstream audience we crave. By attracting more developers and companies, smart wallets will in fact catalyze the growth of the Web3 ecosystem.

Here’s how smart wallets will bring more builders to Web3:

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Driving Developer & Company Engagement

Smart wallet solutions are not just about smart user experience; they are also powerful tools for Developers. Smart wallets can unleash the potential of wallet functionalities through programmability. Developers and companies can develop and integrate the below Web2-like services into the wallet, for instance:

1. Payment & subscription

2. Access control (Time & GPS-based)

3. Complex finance investment

4. Programmable IP/ID solution

As smart wallet solutions mature, they present compelling opportunities for businesses to enter the Web3 space. Companies can utilize Smart Wallets to offer innovative financial services, loyalty programs, and digital identity solutions, among other use cases.

Trust Wallet’s Smart Wallet solution, Barz, is a promising smart wallet solution for builders and companies trying to enter the space.

Through Barz, builders can focus on building their business plans with a few lines of smart wallet integration code while leveraging the on-chain security monitoring infrastructure provided by Trust Wallet.

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Facilitating dApp Development

Developers can leverage the advanced functionalities of smart wallets to build more sophisticated dApps. Features like programmable smart contracts and automated transaction workflows enable the creation of applications that were previously not feasible. This leads to a richer ecosystem of dApps, offering users more options and driving further engagement.

ERC-5792 and ERC-7715 are examples of standards that contribute to it.

Seamless Integration

It is an active field of research in the smart wallet ecosystem to enable a chain abstracted wallet experience. Through state locks of account from a certain chain, users can have an experience of non-fragmented multi-chain balance experience as if it was a single chain.

For example, a user holding $10 USDT each on Polygon, Ethereum and Base can use $30 USDT without concerns about bridging and aggregating them to make a $30 USDT transfer.

A similar instance could be Magic spend by Coinbase, which allowed their smart wallet users to use their exchange’s fund directly from their wallet.

These capabilities of smart wallets can create seamless integration with the TradFi system and encourage more use cases to be explored by both Web2 & 3 developers.

Enhanced Customer Engagement

Companies can leverage smart wallets to create blockchain-based loyalty programs, offering rewards/tokens that can be used across a variety of platforms. This not only enhances customer loyalty but also provides valuable insights into consumer behavior through transparent and immutable transaction records.

Digital Identity and Compliance

Smart wallets can also play a crucial role in digital identity management. By integrating with decentralized identity protocols, businesses can offer secure and user-controlled identity verification services. This is particularly valuable in sectors like healthcare, finance, and e-commerce, where compliance with regulations such as KYC (Know Your Customer) and AML (Anti-Money Laundering) is critical.

Also, reclaim and recovery of account ownership could be provided with digital identity verification through Smart wallets.

Conclusion

Smart wallet solutions are pivotal in the transition towards a decentralized digital economy. By simplifying user experiences and providing powerful use cases of wallets for developers and businesses, smart wallets could play an important role in web3 adoption. As more users, developers, and companies embrace smart wallets, the Web3 ecosystem will continue to expand, fostering innovation and transforming how we interact with blockchain technology. This convergence of technology and usability will ultimately pave the way for a wider and deeper adoption of crypto in user’s daily lives.es.