Web3 Wallet Evolution

Transcript

so guys we have uh a panel final panel before lunch it's on web 3 wallet Evolution uh please welcome your moderator shagun Kaki and we have feni yav Pedro Gomez and Isaac Rodriguez uh clap it up everybody hello GM everyone thank you all for being here my my name is shagun and I'm the founder of a PR Agency for emerging Tech and it's a pleasure to share the stage with the people behind some of the most impressive crypto wallet projects and um yeah we're going to discuss all things about crypto

wallets how they've evolved over time you know the security privacy concerns facing around them and um all the issues surrounding them um so why don't we just do a brief intro and then we can move ahead with the disc discussion sure is this oh hello everybody um excited to be here and I'm yini I'm a founder and CEO of xerion xerion has been on the market for a while most of you probably know it as a defi aggregator but um about a year ago we've actually pivoted into actually not expanded to become a wallet so we're now one of the biggest Challengers for metamask uh so if you haven't tried zeran I encourage you to go and check it

out so You' see the difference instantly hey all I'm Isaac I'm the co-founder of Dawn Dawn is a self cust wallet that is focused on making it simless to use dabs on the phone we first launch a safari extension um Rec so you can just interact and sign um I the St from Safari uh it's an honor to be here I'm from Barcelona um I've been on theum ecosystem since 2017 but it was not until I moved from Barcelona to San Francisco they started working on wallets so so it's a pleasure to be here hi I'm Pedro founder and CEO of wall conck if you guys don't know wck is actually not a wallet but it enables wallets to connect to dabs remotely so

we focused first on mobile to desktop and expanded to mobile to mobile and now pretty much every wallet uses our protocol and wall connect cloud is the infrastructure layer that enables multiple Services as wall connect also domain verification blockchain API access and essentially building sdks for that awesome so we'll Dive Right In and my first question to you if Kenny um as crypto wallets have evolved over time what are the key technological advancements that have contributed to the scalability and also the usability of the this uh definitely this is a I would say a very um that's a right question first

of all so there were a lot of things that changed over the time but I think uh what contributed to like the shift in in how people perceive the wallets was the expansion of the number of things people can do within their wallet so it started off by just having you know a few tokens uh in a wallet but as as daps started to become more and more useful I think wallets had to adapt so a lot of the ux that changed around the wallets was to support more like an Ever growing list of use cases that people experience U within uh their wallet so now I think what happened is wallets became kind of like a center of your web3 journey so you start with the wallet you sign transactions with your wallet uh and everything related to each part of this

user Journey has changed uh pretty much uh drastically over the last uh maybe like four years or so got it and uh Pedro you mentioned when you said your intro that wallet connect is not actually a wallet so I want to ask you um what are some wallet types um you know there are different types of wallets and what are the unique benefits uh that they bring and what consider ation should users keep in mind when n navigating this or wanting to use Yeah so basically wallets can be categorized into four platforms you have Hardware wallets you have mobile wallets desktop wallets and then you have a special category of cloud wallets these Cloud wallets can be custodial or can even

rely on Technologies like MPC and that's essentially focuses on the platform that they actually managing your keys but also how they manage their keys but then on top of that you have to actually take into account the account management so you will have your normal wallets that have no special features and are basically just a key signing for transactions and then you have your smart accounts which sometimes people call it smart contract accounts and that will be when you actually deploy a smart contract to actually manage your account and that then it's a combination between which platform do you want to use and which type of accounts that will essentially um will allow you to find the best wallet for you awesome um and you know crypto wallets are you know

have this repetition that it's like a doit yourself more secure kind of wallet um but also there are some um you know challenges there there are hacks and you know we hear things of you know wallets getting H also so I want to ask you ISAC like what are some of the recent advancements in wallet security and what challenges remain and uring the protection of users digital assets sure so the crypto actually need to like the crypto wallet need to face this in two different branches so the first one is like how do you protect the private key like actually there is no malicious actor that can extract the private key from your device and secondly is how do you present the data to the user that can actually know the context that what

they are going to sign before actually signing it so on the first part um you need to actually make sure that no one can extract the private key from your device right so there's um some techniques that you can Implement like Biometrics or actually preventing that your private key get leak on memory um it's like more technical but you need to make sure that no one can have access to the private key and secondly um you need to simulate the transaction um because like for example unisoft you actually sign to transa a message and a transaction so how do you know how the user know that they are actually signing an approv uh allowance right so you before that you need to show the user

the whole context so they actually sign what they want to sign and I've at Pedro feel free to add you know what you feel about wallet security and let me go so um first I definitely agree with ISAC so there are two crucial uh security considerations so account uh management and the transaction signing so I think it's a little easier on the transaction signing side so for example we at Z we do transaction action simulation uh to basically ensure that every transaction that you sign is basically what you intended to do and I think this could be taken even further so there's fishing protection there's emulation of the what actually happens to match whether the DAP is legitimate versus uh what you're signing um on the

key management side I think uh I definitely agree with Pedro so smart accounts are one of the I mean it's I think a component to the future of a more secure interacting with um blockchains uh because we still want to have self- custody for the keys because that's the defining criteria for like I would say for a success of a wallet but at the same time we want to provide recovery and without um and and basically gasless transaction so these are two big ux challenges that users are faced with so smart accounts together with MPC uh would allow to solve both of this with these things as far as I can see yeah I would just add that gasless transactions is extremely important

because because uh users are too caught up with the technical aspects of the blockchain so we now have the infrastructure to actually solve this and people have been talking about how me can be redistributed to users to incentivize more usage but I actually don't think that's a good idea like honestly they kind of just don't want to pay for gas like just use the MV to not pay for gas and now Wallace have actual business model they can just take a spread from the m and the gas and they actually have a profit and the users don't have to pay for gas yeah on that um fghi we had a chat a little bit U before this panel and you asked me to ask you about um a very important topic that is monetization uh for crypto wallet so I want to ask you

like how can crypto wallet providers effectively monetize uh their services and what are some different ways to do it thank you uh and this is a little bit of a response I guess uh to better we did some evaluation on um basically whether bullets could monetize me but uh at the time of like us doing this evoluation this is still like you need to be a certain size of a wallet and there actually not too many that are able to successfully monetize from that I think the current somewhat working monetization path is basically the swap fees uh and pretty much every wallet has this but I honestly don't feel this is like a great idea long term uh because trading is only one of the use cases uh

for wallet um so for example in zerion more than half of the transactions are now um done on DBS so people are just using different things rather than just trading uh and over time it creates a wrong incentive so if we're incentivizing trading um to basically earn more money then we're becoming more like a Robin Hood type of application whether in my view wallets should actually become more like browsers where you connect to different use cases um so this all leads us to basically we are trying to find ways to monetize on um basically aligning with the with the user so whenever user makes a transaction there should be a payment no matter what kind of transaction that is so that's that's our current take and MV

is like only part connected to trading as well so we're trying to find like what what's the balance basically I'm we also curious to know what Pedro and Isaac think about this yeah definitely like MV like you are substracting value from from from from the user right so it's not look like good from the ecosystem that you are actually monetizing out of your users and ultimately it's also maybe potentially like subscri subcription right so wallets ends up like offering like extra features if you actually subscribe to the wallet or even potentially like insurance right you're insuring the user and you you can offer that yeah I actually think the best analogy for

wallets is how uh data providers work today so everyone has a SIM card and you have a plan and you have amount of gigabytes that you could use and in some uh countries people actually thought that it was not very good for net neutrality for some uh isps to essentially uh subsidize data for certain applications but I actually think this is how wallet's actually going to go where for example maybe Unis swap wants to partner with Dawn and for every transaction users don't actually pay for gas so that doesn't get deducted for their subscription or maybe Open Seas uh there's a partnership with zarion and now every time you sell an nft that doesn't get deducted on your

gas balance so all of the users would like pay a monthly fee to use these wallets which would account for maybe like oh you can do x amount of transactions per month but if you use one of our partners is actually is like doesn't actually count for your amount of transactions per month so you know we don't have to reinvent the wheel here we just have to kind of be a little bit more aggressive but because web3 is so new charging is actually going to kill adoption so we kind of have to wait until it grows big enough I just wanted to I definitely agree so we are actually piloting uh the premium subscription basically it's going to launch in like I would say next quarter this quarter actually uh so yeah this is very interesting there like the

challenges right now is how do we charge the user effectively for for the subscription but outside of that I think that's the most Fair way uh to monetize if users are willing to pay for extra security extra data in the wallet yeah I guess you could just use like the same way people top up their cards in the SIM card you know just top it up so the next month it doesn't stop running out of like data that would be cool um but I think for that we need first to move to Smart accounts and that's a challenge in end of itself I think that's like the the conclusion of this talk it's going to be like if you're not a smart account there's no web tree wallet Evolution but like one thing I'm also personally curious about because there

um there are quite a few wallets as well well in the space so do you think like more wallets are going to like go down the road of finding like other uh monetization aspects and how is it going to affect like the over overall like wallet ecosystem so what what I mean Pedro you shared an interesting view that you think that it's going to happen but like a little bit later so yeah how do you feel like more wallets are going to take this route like how is it going to affect um I don't know the answer right away I think um looking at Big wets I think they're doing just fine like metam mask is earning you know I think it's close to 100 million in the last two years uh and uh yeah they're just

basically monetizing the users who don't know that they can go outside of metamask and swap uh or they're just farming for a drop um so this seems a little uh impossible for other wallets so we definitely need to find like a industry consensus of how wallets are monetized and who is paying for that um yeah but but I I don't think like so far for instance there were some attempts at tokenizing uh the wallet and that was not very successful and I can see why so right now it's like still in the experiment like face I mean I think web 3 technology is very special but we're not and I'm really sorry to disappoint you but we're just repeating the do com boom all over again you know let's not

rush to build the pets.com which was like the first pet store online and then it just died it was a billion dollar business on paper that never went anywhere so it's all going to be about who can survive until we actually have adoption and there's going to be a lot of pivots some wallets might become infrastructure providers some wallets might actually just do full customer experience for DBS you know doesn't mean all wallets are going to survive but they all have to find their niche of what they do best so good luck for you guys thank you what are your thoughts about it yeah I mean I agree with them um ultimately we should all fine because

there's like qualities across the space and ultimately the winning wallet is is going to have like the leading role on the on all of that got it and um another another key thing about wallets is also you know the user experience which is like a crucial especially for mainstream adoption as well um how have crypto wallets simplified the onboarding process and better user interfaces to make it more accessible to wider audiences um all three of you can share your views on this honestly uh there's a company that's been trying to do this for a long time called link drop and basically they tried to create almost like a pre- wallet so people could essentially gift

other people assets like nfts and tokens before they even have a wallet that's by far the best onboarding solution but we don't have Smart accounts yet so it really doesn't really play along nicely with like normal accounts and I think they're they were very early with the idea and I think that's essentially how every wallet is going to on board they're going to turn into a smart account you'll be able to deposit some assets let's say nfts and tokens or maybe ens name and then that will actually incentivize people to actually create the wallet and with smart accounts you can actually do this really interesting thing where the account exists before it's even deployed so you can essentially associate an asset with

a pre- wallet and then they actually once onboard that you can actually justify deploying the smart contract for them so once we actually get to that stage onboarding is going to just explode and I think normal accounts is really slowing us down right now well this might be a controversial take but I will say it's much easier to just import your EA than deploying a smart contract um right now it's like if you end up like deploying a smart contract it might cost $20 on Maine and if you on the future which I believe is like Crow chain then you will need to deploy the wallet on all these chains So currently I don't see it like I I see like much easier just starting with the EA than

actually going through the path of smart contract in terms of like onboarding and also I will say like the smart contract sets a feature parity with a centralized changes so it's not like you you are like improving the ux compared to the centralizes exchanges you're setting like a parity with them so actually you will need like some use cases that will drive this um next adoption of the next billion um on web 3 I I I think I agree in some part with both of you so as a wallet uh in this market so smart counts are not really feasible at the moment because they have basically we can look at the Argent example so that's a smart E con from

like five years ago uh and basically they were all faced with and other attempts faced with an issue of gas it just became unbearable and deploying a smart contract wallet is expensive also has a limit at where like where you can go with the smart account because you need to have an account on every different chain uh so if you want to interact with optimism arbitrum where the transactions are cheaper you need to have a deployment across all of them so that becomes a little bit of a messy user experience as you progress towards like in your web three Journey so EAS are still are still holding some Advantage uh they do have the the problem of recovery and the disability to make gasless transactions so I think

we' have to have a little bit of a push on the smart accounts first before maybe like integrate it more natively into the protocols maybe making these operations cheaper all of that together can get us to like basically parity with EA in terms of where it can um where you users could go with the smart account and afterwards I think we do have we'll have like smart accounts everywhere that that's the take I'm yeah no I I agree I think what has happened in the past is like teams like safe and Argent essentially built their own smart accounts and there was very a lot of like miscoordination and now with this uh 48 well I actually forgot the

name 4 4337 uh it started this movement where all the smart accounts started collaborating and actually writing one standard for them all and wcon actually is compatible with 244 wallets and this is the biggest problem that I always face is like I get feedback from the wallets and then I just realize actually if you guys just work together this would have been much faster you know so smart accounts could have actually progressed a lot easier if people actually have collaborated in the past so 4337 might be the start of a lot of collaboration and we're already seeing an explosion of smart accounts thanks to that so I think it will get much faster in terms of progress because of this

standardization what kind of like collaborations do you also see it like facilitate I mean the good thing about collaboration is that you end up having like uh more resource efficiency if you think about Argent and save they were one of the first smart account wallets but they also had to have their own infrastructure they had to justify having gasless transactions they had to justify transaction validation they had to build all of that independently and it was duplicating work and now what's happening with 4337 is that wallets actually don't even need to run servers for this infrastructure and now there's dedicated teams focused on the actual server side component of smart accounts

while the wallets can focus on the user experience so that level of collaboration almost comes out of the modularity that standardization enables so Zer and andon for example can focus on building the best user experience and then just use an infrastructure provider that enables gasless transactions I mean I I agree so I think we definitely benefit from standardization yeah and I think the effort that the whole industry is putting on uh behind for 337 is good overall so we might actually solve the challenges that other people face with smart accounts um yeah sooner or later awesome um and I want to go back a little bit back on um you know security

and privacy and um one of the major like IND spaces and the space is um defi right so I want to also ask you like what are the potential risks and security considerations Associated specifically with interactions with defi um through wallets um maybe Isaac can share a little bit sure so so yeah basically like uh a wallet uh is holding people's assets right so it's really important like um to to put a lot of effort on that right so on defi especially um as as I said earlier like like a user um who faces the wallet needs to actually know what they are signing

right uh uh that's why like the simulation is the crucial part on on all of that yeah would you like to share afen and Pedro as well I can comment on this because zerion was historically a defi aggregator so we've actually done a lot of work basically useless work in retrospect uh of bringing all the different D5 protocols inside our own interface uh and I think the reason why it was not widely successful is that there there's a trust involved and people don't want to see like a reskinned version of uh compound or maker so I think the state of the market we're in is that users still think in terms of applications rather than protocols and at least leads to them

trusting the native experiences much more so they would rather go to Unis swap directly than even like swap on one inch even though 1 in is for example like almost always or pretty much always better in terms of the rate uh so I think we've kind of basically these interactions within zerion we've stripped them away and focused on what Isaac is saying is basically validating that the transaction that you're signing is what you intend to sign uh and helping User make the correct Choice like I mean help User make the the choices that they intended to make um rather than yeah just sign something fishing just trusting like the other native ones yes is it is it like because there they have like this bias and is

there anything that you know they should know about it that they're missing out on um so if I if I understand correctly um you're saying aot about different opportunities that people can find in defi or yeah yeah um yeah so that is a little different so what we've done is basically help user find the opportunities by uh we have like the perks section and that's been pretty successful actually because people are they can instantly see what is uh what are they eligible for within the wallet so they can know for example like the claim to claim an airdrop or get some nft that they can Mint or etc etc so that's like discovering opportunities rather than actually providing this opportunity in surfacing that these in

in the wallet CU that's more dangerous and you you cannot validate every single um application of protocol got it and my next question is for anyone who wants to take this um what is the role of multisig wallets in institutional settings such as for custody Solutions or corporate accounts and how they address the need for shared control and security among multiple stakeholders I mean when we're talking about smart accounts this functionality is already built in I actually like focusing on the smart aspect of it because it essentially allows for a little bit more flexibility on how you

actually handle transactions how you actually handle recovery but also how you actually handle keys so having a smart account could be having multiple entities controlling an account or it could be a single entity like an individual that just has keys in multiple uh devices for example having a key in your laptop and your phone and but controlling the same account would be really beneficial but the same mechanism that you build to Going Mobile and desktop signing is the same thing is having I don't know three people signing for u a company so I think all of the development that we're doing with smart accounts is going to be accelerated if we focus on individuals and then it will translate into the multi uh and most of

the companies have been focusing on Multi because they were in high demand but actually the users actually needed this first and maybe it's the lack of monetization that has been stopping that but they're essentially the same thing smart accounts for like multiple entities and the single entity is the same yeah that's a very good answer um yeah um also you know we we chatted also about something very interesting that is as crypto adoption is growing wallets are becoming a target for regul regulatory scrutiny so how are wallets adapting to comply with regulations and what are the trade-offs between privacy and Regulatory

Compliance and how's that different you know we talked a little bit about how that's different in different um regions so Evan if you want to share something about it um yeah so this is a pretty tough topic so I think we're still missing Clarity in like in short across the industry and uh specifically for non-custodial bullets I think it's been improving on the centralized um side so centralized crypto is now becoming more and more regulated I think it's still a very much a gray Zone uh and has like the regulation varies across each country for uh non-custodial self- custodial wallets um and I think the reason is primarily people still don't understand how exactly users are going

to use wallets so an example I like to give is uh imagine you're you're using a wallet to trade say like binary options or do like some kind of Casino then that kind of activity is regulated in some countries for sure and uh the question is who's going to be responsible for that AC like for for the KY seeing of the user whether that's the application or the wallet um another example could be very harmless so if users are just minting some kind of nft uh you don't really need to kyc them for that uh kind of transaction so my feeling is that basically based on what you do in your wallet it would require a different kyc level uh so initial app like first operations with your V would definitely

not require any kyc uh and uh maybe it's like it's going to Evol closer to become like a browser like so you don't kyc with a browser you kyc with a specific application so I think that's something similar I believe but we're going to see in in the crypto web3 space yeah I also encourage like to to know your thoughts about but what is happening right now with coinbase wallet it's like SDC is claiming like um that as wallet is offering Securities and then it's like you need to be a licensed broker to actually offering the these Securities and as a my understanding right now is not regulated so it's a gr Zone it's like when airnb or Uber started like like ultimately you will

need to follow the guidance of like these um these people so so yeah would like to know your thoughts in terms of like what is happening right now as ACC we we we looked at uh basically different risks I think right now if we we had Clarity like specific uh guidance it would be much easier to follow uh but now I think like yeah we just cannot do much it's not worth doing you know going five steps ahead of the time without any Guaranty because otherwise we would just be wasting resource so yeah we'll see how this case turns out with with coinbase and that probably that's going to give us at least some

measure I mean I think the that's also one of the friction points where people are still stuck in the normal accounts right because with normal accounts is kind of black and white the user is in control of the key and is self- Sovereign but then once you go into the smart accounts you have a little bit more involvement from the wallets to actually deploy a smart contract and then you have the transaction Rel layers that actually do the actual transaction submission so because this completely changes of how traditional Finance Works to the new decentralized Finance uh The Regulators haven't really adapted and they're just going to try to apply the traditional patterns into these um new patterns and it's not going to be accurate so once we

actually see a good understanding of uh how smart accounts for account abstraction work then we actually are going to see wallets not so fearful of like getting attacked for you know actually doing some Evolution on the wallet side um I I just want to quickly add um so I think the question becomes uh who is who will end up being regulated so maybe like actually the people who are processing certain transactions would require kyc and who gets that it's like a different question um but I think it it's not necessarily basically the wallets uh that's what I'm saying yeah and that would be like a good outcome

for the whole non-custodial space um but yeah we'll see how the regulator thinks about that yeah in in traditional Finance you have what's called a money license uh money LIC money transmitter license uh where you're the facilitator of an actual financial transaction so technically the transaction Rel layers or sometimes they're called pay masters or bundlers uh they would actually be the ones that will likely get kyc so then wallets would might might need to use a form of an aggregator where you have multiple options so the user can actually use zarion or Dawn wallet but then actually see oh do I want to use this particular transaction relayer or

another one because different jurisdictions might have different requirements and taking all this into consideration and also what we talked about previously how do you anticipate wallets evolving to meet uh the changing needs and demands of users in the coming years I feel like we've uh this is like the answer is against smart accounts probably uh so we've talked quite a lot about that but I think we can draw back from V's recent post uh about the three transitions uh so we haven't really talked about privacy which which is one of the also crucial points uh in in the think wallet adoption overall because you don't want to everybody know how

much money you have at any point of time uh and also like every time you sign a transaction you should assume that's public uh and I think once we kind of move away a little bit at least from that so we'll have some kind of privacy um merged with social recovery and gasless transactions I think these three pieces would help us to get um better adoption uh yeah that's just a summary of f paper but so yeah I I will also add like I do believe in a second other effect that my emerge like new use cases emerging through like the simless connection between the dab and the wallet so if you are offering to the user to the end user like better connection with the dab maybe that there will be new use cases

that emerge out of out of that yeah I mean uh I told you like in the beginning it's all going to be smart accounts like it's going to solve all the problems but it does get its limitations at the end of the day wallets are special type of applications on ethereum and evm chains if ethereum and evm chains do not Implement privacy preserving technology then there's nothing wallets can do you know wallets are limited to the extent of what ethereum and evm actually enabl so uh with the smart accounts um we are kind of like pushing the boundary of what you can do with wallets but there's a limit to it so we can give social recovery we can give gas L transaction we can give

better account management but we can't give privacy if evm does not provide privacy yeah and in normal mobile wallets like there there's an integration of Biometrics Biometrics fingerprints and facial recognition so what in web3 wallets what are the security implications and you know drawbacks of using Biometrics or you know facial recognition and how can wallets kind of strike a balance between convenience and security I will say also depends of how the wallet implements that biometric so I saw some wallets that they Implement in biometric but can be hacked let's be honest uh uh so the wallet needs to make

sure that that biometric gets implemented correctly I mean like your private key gets encrypted using the biometric not just a client that some attacker can just bypass this client side and check why is it hard no it's not hard it's like then then you need to use this technique that well we're using like secure Enclave like you encrypt on the OS system you're not on the client side system so I get this question a lot like when I built wallet conect I basically said mobile wallets will win and then people just kept saying ah that's very unsafe mobile wallets are unsafe well it's not really true when you actually look at the evolution of operating

systems on desktop and mobile mobile is actually way more secure than your desktop so if you have keys in a browser extension like metamask on desktop and you have keys on a mobile wallet in the mobile wallet you actually have what's called sandboxing where each application has access only to its information and there's no uh shared data between applications but there are nuances of how you actually store this data like Isaac was saying when you actually have a key you have essentially two patterns which is key storage and key signing you can store a key very securely and then just compromise the key and the moment you actually sign which is what Isaac is talking about how you actually implement the biometric when you access the key to

then sign you can actually compromise it in that very small span of time it might be like 100 milliseconds or even 50 milliseconds but you can lose your key in that moment so it's really down to how good the wallet provider has implemented key management and I will also add like with a smart contract you can deploy um with a key generated in SEC Enclave which technically converts your mobile um wallet in a in a hardware wallet because basically no one has access to this key generated in the secur onclave um can you also explain the concept of hot and cold wallets and uh discuss like can we discuss the advantages and disadvantages of each in

terms of access accessibility convenience and also security so it goes back to the key storage and signing right so ideally you always store your key in a cold place and by cold it means that there is enough um isolation of the software that there nothing else that doesn't require signing will access this so when you have a hardware wallet they have what they call a secure element which stores the key and also signs it so the only thing that goes inside of the secure element is the actual message or transaction that needs to be signed in your phone we could actually achieve this but the problem is that the average phone does actually use the same

cryptographic curves as the ethereum blockchain so every time you sign we have to remove the key from the secure element sign it outside of the secure element and going back into the storage so this is why it's called a hot wallet because there's a moment where it's hot you know where the key could be compromised because it's essentially accessible by multiple software and this opens up to what's called a supply chain attack where wallets are very complicated software they might have thousands of dependencies and dependencies just means like multiple software packages that are included in the same application and there has been wallets and you can go back I'm not going to name the wallet 3 months ago

where users lost their seed phrase because someone changed one one dependency in the wallet and it stole the keys of all of the users and this supply chain attack was only possible because it's a hot wallet right so the key was extracted from the secure element into the actual application in that Split Second it was able to steal the seed phase and that's very unfortunate I I agree so um I think we've been dealing a lot with these uh concerns so like we would have to I mean we we're going through rounds and rounds of audits just to make sure that like we we do it at the best we can given the platform limitations um so yeah I think

we still have a long way to go ideally we we don't want to have all the funds sitting in one private key because if you even if it's like one key is compromised uh you you're not losing everything thing so that would be the best outcome and I think that's like the future where we are headed at the same time protecting the private key as of right now I think it's yeah it's like a collaborative work between the platform capabilities and what we can do on our end to ensure that we're never I don't know sending the private keys to analytics or stuff like or like supply chain attack not having too many dependencies that we cannot control or at least like passing audits fixing the the version of the library such that we we are not getting any unexpected

uh code loaded into the application yeah I will also add as as as you said like um right now the security onclave on iOS doesn't support ethereum's scurve right but what we're doing for example is like we're leveraging that technology by encrypting the private key using a key generated there so actually no one has access not even ourselves so ultimately the only one who my sign something is like you with your pH a your biometric right and I come from a very mainstream background um so I'm always curious about this crypto wallet space and right now to me from like an outsider's perspective who's not very much involved in like the technical aspects of it um

there are a lot of like crypto wallets in the space I from my perspective but in this bare Market what what does one have to do like to stand out like what are some you know things that that you think of that has to be there is it I'm personally very bullish with intents so like extracting away like how to do like uh like an and from from actually executing it for example on Google you type type of like reip right but it provides you the end receip it doesn't provide the process right uh an example on that on on the on on on this case like I want to take out Alan but I don't care on what chain uh what

protocol so ultimately you will exract away all of that I mean I'm going to be a buzz scaler like I already said like there's nothing special about this it's startups if there's a bare Market don't die like that's pretty much the best advice I can give you so you just have to be very quick on your feet like I think some wallets get too carried away with the latest trends you know first there was defi then one was nfts maybe the next one will be like social and gaming so you just have to be really quick to adapt you know like just enable users to do what they love the most and if they're just following whatever is the latest Trend you have to be very flexible and not like commit yourself too much but also not commit yourself

too little to a particular Trend so that you're not like caught up to be like oh you're the nft wallet and then nobody cares about nfts and now you're stuck in like the trend of 2021 yeah I think I definitely agree with what Pedro said I think this is the Trap that many people many WS s find themselves in um so zeran we started with defi but we quickly realized that it wouldn't stop at Defi and there are other things uh in life than uh trading and and yield farming uh and users are interested in that and that's why we've been shifting towards a more abstracted UI so you can access any kind of dap uh and our role is basically supporting the things that users really want to do uh

for example like in from the latest example the centralized social media was in the rise as well as like music and FTS as an example uh so yeah adapting basically your experience to what users need in this moment I think is pretty much important such that you know because like wallets have this quality of OIC over time uh and if you look at metam mask it didn't really change over time as much so they were right to kind they were one of the first they kickstarted the whole you know web 3 and daps uh um usage in a way uh but at the same time they haven't adapted as much to the needs of the users recently and I think this is the moment uh where some

competition to mamas can actually shine I think that this is what we see happening I think uh we're a little bit short of time and I I'm going to move over there to see if there are any questions um so we have a couple of questions um here what is your opinion on ERC 4337 a abstraction and token bound accounts if anyone I think we talked about it for like 20 minutes it's fine um okay the other one is are any efforts on ux of human readable cross wallet addressing I mean there's some efforts regarding that actually I will give

props to safe wallet for doing that uh they started adding prefixes to addresses like e double column address poly double colum address and that kind of allowed you to understand that the specific address match the chain so having this kind of like multi-chain cross chain experience would be really convenient and maybe in the future this will be adopted by more wallet so it will be easier for people to kind of realize what chain they're talking to I would just add that um an effort needed on the domain uh side so something like ens is um I think the right in in a good position to basically take over that so if you have like a

single account that is being resoled to a certain chain that you need to send money to like interact with I think that would be you know that's better than having like long addresses in general the other question is can you explain pros and cons of MPC eoa and smart accounts I can give it a just really quick yeah yeah yeah I can give it a shot so um I think MPC is very useful for for uh recovery so you can just split basically your private key into multiple shards and you can basically have one uh share of the keys sitting somewhere in where you can verify in a different way that uh you're the person claiming to be so in case you lose one

of the shares you can restore that through some third party without giving away the complete control over your account at the same time the limitation as far as I understand right now is that once you've created this uh shards you cannot revoke them so if you start losing your shards then you would need to somehow reencrypt the key and this is where we're hitting the problem again so uh the longer your key lives the the more chances are that more of the shards are compromised uh so and you cannot like rehash it because private Keys already out there so that's uh I think why we need to combine MPC with account abstraction so we can always change the main owner of the smart account that is NPC um then the other question is how

unsafe is it to keep keys in the phone it's not it's very safe use your phones please okay thank you the last one how do we solve the poor ux from injection can you give a progress update or the new EIP 6963 thank you for that question I'm writing that standard and I'm very happy to share an update so EIP 696 6963 for those that don't know have you ever had the unfortunate event of installing two browser wallets at once and then the DAP doesn't even know which one it's connecting to and it just randomly picks one that's a huge problem in ethereum and EIP 6963 solves that and it will allow for better browser wallet

Discovery and not only will allow for better browser wallet discovery which means that any new wallet can just immediately be recognized with a new logo and name but it will also allow for multiple walls to be connected at once so with the EAP 6963 we're now currently going into the review stage so after the review stage I would say that like maybe if we put some effort into it three to 6 months but zarion already implemented it so they actually already have it so I don't know what you're waiting for you have to implement it as well so it's coming it's coming yeah that's the last one and we're also you know the time is up so this is the end of the last panel for for the conference thank you so much for

listening and all your amazing questions thank you to all the list um and yeah have fun for the rest of the event thank you