Web3 products can’t expect users to immediately make the leap from familiar centralized experiences into the deep end of decentralization, in one step
Centralized exchanges like Coinbase have proven the efficacy of the “custodial” model for trading crypto, in which people keep their assets with a custodian that secures and keeps track of assets on their behalf
But a full web3 experience requires sending tokens/NFTs to a noncustodial wallet, in which no one but the user holds the private keys and there are no limits to the types of transactions that can be done (dApps & Metamask)
A path to web3.0
Provide familiar, custodial experiences to begin with, with the ability to graduate into noncustodial experiences when the user is ready. In more details:
Companies can implement a regular Web2 construct, like “users log-in via email address”
Under the hood, companies infrastructure can already provision a dedicated wallet on Hedera ledger for each user, and provision a dedicated Google Cloud encryption key that holds the private key and/or seed phrase of the wallet
Start with custodial experience & educate
Companies platform should enable engagement, without complicated seed phrases ; learning can begin for the user, with basic security steps, then progress to more advanced Web3 concepts
Similar concept as “Coinbase Learn” basically
Create a pathway to Web3 wallets
Companies platform can then provide a way for users to transfer all Web3 assets to the non-custodial wallet of their choice.Companies should also be ready to interact with such non-custodial wallet, and allow for the regular Metamask integration
From a developer perspective, it’s all about balance:
Non-custodial experiences make emerging markets really easy to access, as the dApp developers are not responsible for compliance. Custodial experiences, on the other hand, involve dealing with KYC and Anti-Money-Laundering. This architecture is based on two very fundamental principles:
Meta-Mask has the ability to sign any message with a user wallet private key
But the dApp developers never have access to the private key directly
Want to learn more?
At Codimite, we thrive to resolve these transformation journeys and pioneer innovative paths to Web3.0 that no one else though about before.
We will be your side, both as consultant and as developers, to help you create your own vision of what a path from Web2.0 to Web3.0 looks like for you, and help you materialize it into technical implementations.