Programmable Wallets for Web3: The Future of Digital Asset Management
As Web3 scales towards the next generation of the internet, it promises to be more decentralized, secure, and transparent than the current web. One of the key components of Web3 is programmable wallets.
Programmable wallets are wallets that allow users to interact with decentralized applications (dApps) on the blockchain. They are more powerful than traditional wallets because they can be programmed to perform complex tasks, such as sending and receiving payments, signing contracts, and managing NFTs.
The tech structure of programmable wallets is based on a few key concepts:
- Blockchain: Programmable wallets are built on top of blockchain technology and can be deployed on both L1s (Ethereal) and L2s (Polygon, Base etc.). This means that they are secure and transparent, and they can be used to track the ownership of digital assets.
- Smart contracts: Smart contracts are self-executing contracts that are stored on the blockchain. Such wallets can interact with smart contracts to perform complex tasks, such as sending and receiving payments, signing contracts, and managing NFTs.
- APIs: These wallets typically expose APIs that allow developers to interact with them. This makes it easy for developers to build dApps that integrate with these wallets. With NFTB APIs, deployment of programmable wallets is a breeze.
At its core, such wallets take advantage of account abstraction ERC-4337 and reimagine the traditional structure of accounts within a blockchain network. In Ethereum’s current state, user accounts are externally owned accounts (EOAs) that are controlled by private keys. On the other hand, contract accounts are managed by smart contracts and are controlled by the logic defined within those contracts.
Programmable wallets aim to dissolve the rigid distinction between these two types of accounts, presenting a unified framework that enables any type of account to control its own behavior. This implies that contract accounts could potentially control other contracts or even other accounts, ushering in a paradigm where the boundaries between user accounts and smart contracts blur.
Here are some additional benefits of using programmable wallets:
- Security: More secure than traditional wallets because they use cryptography to protect users’ private keys.
- Privacy: Can be used to protect users’ privacy by allowing them to transact anonymously.
- Control: Give users more control over their digital assets. Users can choose which dApps to connect to and what data to share with them.
- Interoperability: Interoperable, which means that they can be used to interact with dApps on different blockchains.
Overall, programmable wallets offer a number of advantages over traditional wallets. They are more secure, private, and controllable, and they are interoperable across different blockchains. As Web3 continues to grow, these wallets will become increasingly important for managing digital assets.