Integrierte Geldbörse

Who this Guide is For

This guide is for those looking to build an application, game, or other tool that utilizes a blockchain backend while providing a seamless, Web2-like user experience. By embedding a wallet into your application, you can serve as your customers’ gateway to Web3 without compromising your brand or user experience. In this guide, you will learn about embedded wallets and key considerations for integrating them into your application.

Intro to Embedded Wallets  

Wallets are essential tools for securely storing digital assets, authenticating users, and authorizing transactions on the blockchain. They come in various forms, with the most commonly used being third-party browser extensions like Phantom or MetaMask. While powerful, these wallets can disrupt the user experience in decentralized applications due to pop-up approvals, inconsistent branding, and the need for users to manage separate tools/log-ins.

Since wallets are the primary interface for users to access and interact with decentralized applications (dApps), utilizing an embedded wallet can streamline the user experience. Embedded wallets are integrated directly into your application, allowing you to manage the look, feel, and experience of signing and approving transactions and reading blockchain data. This integration provides a cohesive user experience, aligning the wallet interface with your application's branding and design.

Why Embed a Wallet in Your Application?

Embedding a wallet into your application can offer significant strategic and operational benefits, enhancing both user experience and business opportunities:

• Streamlined user onboarding and engagement: keep your users in your app without introducing 3rd party extensions, click-throughs, sign-ups etc. 

• Brand Loyalty: A seamless and engaging user interface for interacting with your ecosystem can strengthen customer relationships and create a product that users love. By embedding a wallet, you maintain consistent branding and UX, which fosters trust and loyalty.

• Smooth Transactions: hide the complexities of signing transactions and maintain an uninterrupted user flow, allowing continued activity while transactions are confirmed in the background.

• Reduce customer risk: reduce the risk of customer-managed and lost keys

Embedding a wallet can help create a seamless gateway for your customers into the Web3 ecosystem. The biggest brands in the world, such as Starbucks, Reddit, and NBA’s Top Shot platform have seen success leveraging them. By doing so effectively, you can enhance the user experience and drive new opportunities for your business. 

Design Considerations

Understanding your user and use case is critical to setting your embedded wallet up for success. Here are some primary design considerations to keep in mind early on:

• Asset Custody: Consider the level of control and responsibility your users will have over their private keys. Deciding between third-party custody, user self-custody, smart-contract governed, or an in-house managed alternative could have significant design, legal, and growth implications. Explore the table below to better understand your options:

• End User: Know who you are building for. Design the user experience to be intuitive and accessible for your target audience.

• Use Case: Define the primary use case(s) for your wallet (e.g., DeFi interactions, NFT management, game state changes, ticketing validation, etc.). What features are a must-have versus those that might be unnecessary/confusing for your application?

• User Interface: Design an intuitive and user-friendly interface that enhances engagement and creates experiences that delight your users. Ensure that the embedded wallet seamlessly integrates with your application's existing UI to maintain a consistent and cohesive user experience.

• On/Off Ramp: Provide seamless on-ramp (fiat-to-crypto) and off-ramp (crypto-to-fiat) solutions within your embedded wallet to facilitate user transactions. This integration ensures that users can easily convert their assets and enhances the overall usability of your application. Browse providers.

Technical Considerations 

Security and user trust is paramount to embedding a wallet that users will use. Here are a few critical considerations to think about when getting started integrating a wallet: 

• Blockchain Compatibility: Ensure you design your offering, and launch with the relevant embedded wallet, to use the blockchain networks that best cater to your use case. 

• Security & Key Management: Implement robust encryption protocols for private key management. Consider implementing multi-factor authentication and regularly conduct security audits and personnel background checks to protect user assets. Use industry best practices like hierarchical deterministic wallets or passkeys for enhanced security and user-friendly key recovery options. Check out our guide on Wallet security for more details on various options and considerations for wallet custody.
  You should also consider integrated tools like Blowfish to protect end users from phishing and other wallet drainer attacks.

• Transaction Processing: Depending on your use case, a single user wallet can sign and send thousands of transactions daily. Ensure you are following best-practices for your relevant chain(s) to optimize transaction handling to minimize delays and reduce user fees. Ensure that users have access to a clear and relevant transaction history for your use case. 

• Open Source Standards: Where appropriate and possible, ensure your wallet adheres to open-source standards to promote transparency and security (e.g., Wallet Standard).

• MultiSig/Hardware Wallet Support: Consider whether to support multisig/MPC  functionality and/or 3rd party hardware wallets (e.g. Ledger) to allow users an extra layer of security.

Other Considerations

Beyond design and technical aspects, Compliance & Regulatory matters should be carefully reviewed for jurisdictions you plan on operating in. Implement necessary compliance measures, such as KYC protocols, and ensure user data privacy and security in accordance with regulations. Regularly review and update compliance practices to adapt to regulatory changes.

Build vs. Buy

Before building your own wallet, it's essential to consider whether to build in-house or buy an off-the-shelf solution from an existing wallet service provider. There are a growing number of platforms offering Wallet as a Service (WaaS), which allow developers to integrate customizable wallet solutions into their applications without the complexities of managing security, infrastructure, and compliance. Here are some factors to consider:

• Development Time and Resources: Building a wallet from scratch requires significant time, technical expertise, and resources. Partnering with a WaaS provider can expedite the development process, allowing your team to focus on core functionalities and user experience. Building your own wallet means you are responsible for ongoing maintenance, updates, and scalability as your user base grows. WaaS providers often handle these aspects, ensuring your wallet remains up-to-date with the latest features and security enhancements.

• Security and Compliance: Managing security protocols and ensuring regulatory compliance are critical and resource-intensive aspects of wallet development. WaaS providers typically offer robust security measures and compliance support, reducing some of the burden on your team and outsourcing some risk.

• Customization and Control: While WaaS platforms offer customizable solutions, the level of control and customization may be limited compared to building your own wallet. Assess whether the WaaS provider's features and customization options align with your specific needs and use cases.

• Performance Assurance: Review vendors’ performance history and up-time guarantees included in any service-level agreements. 

• Cost: Compare the costs of building and maintaining an in-house wallet versus partnering with a WaaS provider. Consider both the initial investment and ongoing operational expenses. WaaS providers typically offer subscription or usage-based pricing models, which can be more cost-effective for certain projects.

By carefully weighing these factors, you can make an informed decision on whether to build your own wallet or partner with a WaaS provider, ensuring the best outcome for your project and users.

Wallets as a Service Providers

Below are some of the most popular providers in the Wallet as a Service space that can be used to get your project off the ground as quickly as possible.