Over 420 million people all over the globe own cryptocurrencies. They aren’t only limited to the rich and tech-savvy. However, there are still barriers for a more widespread adoption, including lack of regulatory oversight, security challenges, and complex interfaces.
To combat them, a new breed of startups rose, specializing in wallets-as-a-service (WaaS). In this article we will cover the idea of these products, their role, and impact on the crypto market.
Role of WaaS startups in crypto adoption
WaaS startups provide cloud infrastructure and software components for crypto wallets. Developers can quickly integrate them into other applications at a reasonable cost. But even the regular users feel the effects.
Firstly, they simplify wallet setup and management. Users don’t have to create several wallets for different blockchains. They don’t need to remember all the associated information (passphrases, seed phrases, etc.). Now a person can have one convenient solution that combines everything and uses biometric identification to ensure maximum protection.
Secondly, they provide user-friendly interfaces for all one’s crypto needs. This includes seamless access to all types of cryptocurrencies stored, exchange rates, selling for fiat, and more. This facilitates the use, so the startups have a vested interest to make their products as simple and intuitive as possible.
Finally, they simplify crypto transactions themselves. Many services, for example, offer gasless Ethereum transfers, saving people time on topping-up their wallets. They also provide features that help estimate blockchain commission, co-sign transactions, and more.
Impact of WaaS on crypto adoption
The crypto technology market will grow by a whopping 66% per year, as market research shows. Wallet-as-a-service startups play a major part in it. This is because they have a major effect on the businesses and consumers alike.
Promoting awareness and accessibility. Software products like these help deliver a larger application faster and with less initial investment. This means more companies can create comprehensive and convenient Web3 offerings that ultimately allow more people to join the industry. In addition, their marketing keeps raising awareness about cryptocurrencies in general, which is the first step to joining.
Empowering access to digital assets. The new breed of crypto wallets helps users trade crypto without worrying for their safety. All thanks to cutting-edge security measures like multi-party computations and biometric authentication.
Moreover, integrating a WaaS product is cheaper than making it from scratch. The companies then pass these savings on to consumers, making their software cheaper to use and more accessible.
Encouraging user engagement. WaaS startups let people have all the important information at their fingertips at any time and with little hassle. This removes most barriers, encouraging customers to actively participate in the crypto industry.
Wallet-as-a-service startups help businesses immensely. They streamline crypto trading and investing in different ways, protect people’s money, and facilitate buying and selling. They simplify everything so that anyone can engage with the industry.
In addition, they let companies integrate convenient, user-friendly solutions in their software at a lower cost. While WaaS startups can’t affect some barriers (e.g. the lack of legal regulation), they actively benefit the crypto industry.