Getting involved in the cryptocurrency industry requires setting up a wallet to keep funds safe. Many users will have different wallets for various purposes. However, one must wonder if this approach can’t be made simpler by combining everything necessary into one solution.
The Sea of Crypto Wallets
Finding the right cryptocurrency wallet for novice users is not too straightforward. More specifically, there are different solutions for different needs. To many users, MetaMask is a wallet solely for Web3 interaction through DApps, DeFi, NFTs, and so forth. However, users will often flock to a separate mobile/desktop wallet or even a hardware device to keep most funds safe. Having more than one crypto wallet solution is the new normal today, although one must wonder if things can’t be simpler.
Novice users will often find themselves overwhelmed regarding the different wallet options at their disposal. Moreover, the concept of managing different wallets means paying attention to multiple sets of private keys or seed phrases, which might not be ideal. Additionally, users need to take the necessary precautions to add extra security layers to these wallets. Most do not support two-factor authentication or other solutions to that end, which is rather problematic.
Crypto wallets should be tied to one’s digital identity in the ever-connected digital world. That is a compelling momentum shift, although it may not happen automatically. Building the necessary infrastructure for digital identity management is a lot harder than it may seem. Some companies are already paving the way for such solutions as they address the need for more streamlined solutions. Bringing the mainstream into crypto will require new tools and approaches.
When Identity Meets Crypto Wallets
The approach by Avarta is an excellent example of how digital identity and crypto wallets can come together in a meaningful manner. The tea solves issues affecting authentication and identification challenges in today’s technology industry. Despite numerous advancements in the world of blockchain and cryptocurrency, there is still a growing need for more convenient solutions. Both experienced and novice users could benefit from interconnected solutions that provide more functionality within one environment.
Through Avarta, it becomes possible to create a multichain blockchain wallet that is protected by biometrics, rather than passwords or standard two-factor solutions – should those even be available. Biometric protection ensures users cannot have their wallets accessed by anyone else, as biometric data is unique to every person. The project posits itself as a four-in-one solution for decentralized finance and blockchain. Your face is your private key to all supported blockchains and wallet addresses under your control.
Moreover, the solution supports multi-signature solutions, benefiting individual users and corporations alike. Catering to the needs of everyone is a crucial step to take cryptocurrency into the mainstream. In addition, providing users and companies with standards of authentication and proof of identity – rather than using outdated standards – puts a positive spin on this industry and enhances its overall appeal.
The multichain approach also ensures there is no need for additional crypto wallets. Users can manage all addresses across the different chains through one digital identity, letting users consolidate their cryptographic keys without passwords, seed phrases, or writing down any sensitive information. The combination of biometric and device data is rather interesting and helps Avarta create a trust score to create secure wallets for everyone using this solution.
The all-in-one approach of building secure digital identities and leveraging that to store crypto wallet information under one umbrella has many potential consequences. The [decentralized] finance world can help users prove how reliable they are for investing/lending/borrowing purposes, among other things. It can replace traditional credit ratings, which aren’t always fair or correct.
More importantly, biometrics helps empower users, as they are in control of their funds, transaction history, and identity. It is an exciting development on the road to building more appealing ways for people to enter the cryptocurrency space, although it can also apply to more traditional finance solutions and products.