Тop 7 Problems of Crypto Wallets and How They Could Be Solved

About a year ago, billionaire investor Mark Cuban said crypto wallets were “awful.” It meant they were far from user-friendliness and were facing security and accessibility issues. What has changed since then? OneArt figures out if these issues are still relevant and how developers can respond.

Poor UI/UX

❌ Some crypto wallets have progressed in terms of user experience and have removed the complexity to become easier to navigate through. However, some still are built “by developers, for developers,” decreasing a usability score significantly. According to the 2020 usability research, newbies fail to carry out fundamental tasks in all (!) the studied wallets.

Source: Examining Usability Issues in Blockchain-Based Cryptocurrency Wallets

✅ Conduct surveys to discover pain points. As per research, you can detect 60–75% of usability issues via evaluation by 3–5 experts.

✅ Also, consider adding walkthrough screens to show your wallet’s features and how to use them. We’ve already done that for our iOS OneArt app and plan to add walkthroughs to Android as well.

Transaction times

❌ Sluggish transactions and scalability are also challenging for developers due to the blockchain’s nature. To be added, each transaction needs verification. Transaction times vary drastically, but on average, it takes a BTC payment ~ 10 minutes to be confirmed. Just compare: Bitcoin can process 4.6 transactions per second, while Visa accounts for 1,700. More transactions = more problems with speed. Striking a balance between security and user experience is an arduous task.

✅ You could offer an option to attach a higher fee to miners to speed up the transaction. Moreover, adding an extra fee after the transaction was sent is possible.

Source: academy.binance.com

✅ Notifications about a pending payment and time remaining may help relieve unnecessary stress.

Lack of customer support

❌ It’s a rather common issue not only for crypto wallets, including MetaMask but also for crypto exchanges.

Source: Statista

Numerous reviews mention poor customer support as well as problems when trying to solve issues with stolen crypto assets and missing transactions. However, the latter applies to all non-custodial wallets. If you lose or forget your seed phrase, customer support won’t help you. Perhaps, in the future, soulbound NFTs or crypto profiles (or both) could help find the way out and simplify user identity verification.

✅ The answer to a problem could be

  • Expanding your team to include customer support
  • Launching FAQ bots
  • Again — enhancing user onboarding flow.

Security issues and scam

❌ Blockchain enables enhanced security due to cryptography, decentralization, and consensus. But that doesn’t mean it’s immune to fraud and security problems. About a month ago, popular browser-based wallets, including MetaMask and Phantom, discovered a vulnerability that could have exposed login credentials. TrustWallet users became victims of scammers after 50,000+ phishing emails were sent from a malicious account. And these are just two examples.

Source: A survey on blockchain technology and its security

The most common issues include:

  • Authentication risks because of lack of security control
  • Deanonymization risks (e.g., by analyzing transactions graph or observing nodes’ connections)
  • DoS attacks
  • Platform trust risks
  • Supply chain risks.

❗️Very often user reluctance on securing their data is SPOF.

✅ To enhance security, consider using static code analysis and dependency management tools, adding multi-sig, and teaching your users the basics of security. Add hints, notifications, short videos, or image sliders with tips to ensure users know how to interact with the wallet safely.

Privacy vs transparency

❌ Blockchain’s decentralized nature means 3rd party can’t possess the data, but any node can access it. It’s transparent ➡️ thus can potentially infringe on privacy and let scammers trace specific users. Spam, scrutiny, unwanted airdrops (remember memecoins sent to Vitalik Buterin’s wallet?) to follow soon.

✅ The potential solution could be allowing users to hide some activity and developers being more “intentional about who sees their users’ data.”

Large Web2 corporations

❌ We’ve already raised the issue in our article about market monopolists like Apple doing their best to hinder Web3 development and cracking down on apps. Without clear guidelines and rules, finding out what exactly went wrong is a daunting task. In most cases, it’s all about the money: big tech giants don’t welcome dApps features if they don’t get their in-app purchase cuts. Thus, they degrade the user experience and disrupt the very idea of a decentralized ecosystem.

✅ An idea of launching a dApp store has already arisen. Mobius has rolled out its version — a “platform where the MOBI token could be used,” but the major market participants haven’t rushed there. Last year, Coinbase announced its plans to develop a blockchain-based store, and it may have more chances to engage developers and users.

No all-around service

❌ There’re over 80 crypto wallets, as per Cryptowisser. Though their basic features are pretty the same, none meets all the user’s needs, and you have to switch between different apps and services. And if a wallet doesn’t aggregate marketplaces, support various blockchains, and add interoperability and multifunctionality, it’s limited in terms of scaling and expanding the user base.

✅ At OneArt, we believe a true crypto wallet is not only multichain but also social. In addition to managing assets, browsing dApps, and other crypto-related features, it would offer following other people, find like-minded users, enable gaming options, and much more.

Windup

Blockchain was first conceptualized and introduced in 2008, and the technology has come a long way since its public debut. However, it’s still far from mass adoption largely due to the issues mentioned above. But we strongly believe that Web3 is on the threshold of introducing a safe and convenient solution meeting all the user’s needs, including our very human need to be social. It could help turn a complex interaction with a completely new world into a fun crypto journey by joining like-minded users, following influencers, copy trading, and much more.

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