The next evolution of crypto wallets is here

This article is part of Crypto Insights, a segment by major crypto exchange Bybit that dives into the latest and most pertinent issues in the crypto space.

The only noteworthy thing about using a digital wallet to buy pineapples from an old lady sitting in a roadside shack in rural Laos is how mundane it feels. She weighs the fruit on an ancient scale and points to a QR code taped to the rough wooden table.

I scan the code with my banking app and transfer the cash. The receipt appears on my phone and she peers at it and smiles.

Google Pay wallets could be surpassed by their Web3 cousins. / Photo credit: CardMapr.nl / Unsplash

The recent growth in digital wallets worldwide has been astounding. A study from Juniper Research showed that “the total number of digital wallet users will exceed 5.2 billion globally in 2026, up from 3.4 billion in 2022.” The research said that digital wallet use will continue to thrive in developing countries like Laos, which are considered “cash heavy.”

While mobile banking apps are convenient, they still rely on a centralized banking system dominated by outdated paradigms. It’s blockchain wallets that will dominate the next iteration of digital wallets, and they won’t look anything like the current crop.

Super apps, super privacy

Web3-native wallets are some of the “super apps” that are leading the evolution of the digital wallet, connecting users to more than 3,700 apps across the crypto ecosystem. These platforms have seen significant growth worldwide, most notably the MetaMask wallet in Brazil, Indonesia, Russia, India, and Nigeria, according to Statista.

Photo credit: fellowneko / 123RF

It’s worth noting that the data on your Web3-native wallet is owned by you, not a private company. It can’t be sold to advertisers or used by algorithms designed to sell you products and services you may or may not need.

In the world of Web3, apps such as Daylight and DeBank read your wallet’s data with your permission – you literally sign it over to them when you connect to their app, and you can revoke access at any time. Once connected, these apps can trace your transactions and create a portfolio of your holdings. They can also list the airdrops, votes in decentralized autonomous organizations, and other benefits your wallet is eligible for across blockchains.

However, Web3 apps require a “non-trivial level of expertise” (a great phrase I picked up from reading blockchain projects’ whitepapers). So, enter the centralized crypto exchange (CEX).

Almost everyone getting started in crypto does so by buying tokens through one of the major CEX platforms. As a key gateway to the world of Web3, these platforms offer similar wallets designed for maximum ease of use.

A CEX wallet allows you to access the same decentralized applications (DApps) as MetaMask and the like, but the exchange takes care of storing your keys safely, paying fees, and auditing the DApps for safety. These exchanges are an essential step for users to explore the wider crypto ecosystem with many of the complexities removed.

Change comes quickly