WalletConnect Development

While blockchain technology is a response to the current central monetary policy, the trend of DeFi is in turn a counter-movement to the central entity that many organizations still have in the world of crypto and blockchain. If we look at the largest exchanges such as Binance, we must conclude that they are also centrally controlled. The team behind Binance can decide at any time to take the exchange offline and make off with all the coins on the network. In practice, the chance that this will actually happen is fairly small, but in the past several exchanges have made off with all the tokens that were circulating on the platform at that time. Always be aware of this.

DEX and/or decentralized exchanges are developing at a record pace. When we look at the shares of UniSwap or PancakeSwap we see an exponential increase in both the use of the exchange and the investments made in their native tokens.

The very rapid developments of the DeFi ecosystem did not go unnoticed by Binance and they themselves introduced the Binance DEX on the Binance Smart Chain. This is a dual-chain system where you have the freedom to build dApps in a secure way. In this way, Binance can also play an important role in the world of DeFi.

Access to DeFi used to be a rather complex process, which meant that average investors did not dare to venture into this. The first dApps were built on the Ethereum (ETH) blockchain using smart contracts. In the early years there was MIST, which was the very first browser for Ethereum and included the first nodes of the Ethereum blockchain to access all dApps. Before you would have full access, you would have to download this entire blockchain and be a node in the network yourself.

In theory this was a great idea, because then you get a large-scale peer-to-peer network and many copies of the blockchain, which made it tamper-proof and secure. But in practice this application was less realistic. Downloading this application was time consuming and as the blockchain grew, it became increasingly difficult for many people to get on board. You should already have an excellent computer that has enough memory and capacity to run large programs.

Besides the fact that building a new browser was a difficult task, the developers were unable to give many users access to these dApps. There was a clear need for innovation and a new approach.

MetaMask is an Ethereum wallet and a browser extension for Google Chrome that gives you access to dApps and the blockchain infrastructure. The extension is basically a further development of MIST. MetaMask has many users because it is the gateway to many DeFi protocols, but Pedro Gomez, lead developer of Wallet Connect, found MetaMask’s applications insufficient. When registering and connecting your wallet, you must enter your password. Disguising passwords on a public network is never without danger.

WalletConnect is an open protocol to enable secure connections between various mobile wallets and desktop applications such as dApps. Transactions are made via an encrypted connection using a QR code. By scanning this QR code, you do not use personal passwords and are therefore considered much more secure than MetaMask, among others. With WalletConnect, you can connect your wallet to countless applications, unlocking a whole new world of web3 possibilities.

Since its launch in 2018 by developer Pedro Gomes, WalletConnect has continuously expanded its functional compatibility within the web3 space. This allows wallets to provide the highest quality user interactions through advanced tools and infrastructure.

How does WalletConnect work?

WalletConnect is an open-source protocol that facilitates connections between different wallets and decentralized applications (dApps). It simplifies the integration of cryptocurrency wallets and decentralized applications for developers, providing an easy connection process. The innovative Mobile Linking technology ensures a seamless connection between cryptocurrency wallets and decentralized applications.

By using a shared key, WalletConnect establishes an encrypted connection, facilitating interaction between dApps and compatible wallets. While the specific steps may vary slightly between web browsers and mobile browsers, the process ensures transaction security and protects user privacy by avoiding the exposure of personal information. This protocol provides a level of security and confidentiality that is not available with traditional browser extensions.

To illustrate the mechanism of WalletConnect, let’s consider a scenario where a dApp in a web browser connects to a cryptocurrency wallet on a smartphone.

Connecting Applications and Wallets with WalletConnect

WalletConnect seamlessly integrates with over 170 cryptocurrency wallets, including MetaMask, Rainbow, Trust Wallet, Argent, and many more. Using WalletConnect is a straightforward process that involves accessing a decentralized application (dApp) through its official website and connecting it to the cryptocurrency wallet of your choice.The connection between wallets and dApps is established securely and effortlessly by scanning a QR code or clicking on a link. Here is a step-by-step process:

Visit the official dApp website

Always ensure that you are using the official domain of the desired application to guarantee a secure and confidential connection. Then, launch the dApp.

Connect your cryptocurrency wallet

Choose the option to connect your cryptocurrency wallet and select WalletConnect to display the QR code. Next, open your chosen cryptocurrency wallet application, go to the “Settings” tab, and select “WalletConnect” to establish a new connection. Scan the QR code from the browser. The protocol will redirect you to the dApp, and you will be able to link your digital wallet to start working.

Start trading

After logging in, for example, to a decentralized exchange (DEX), you can trade or lend your cryptocurrencies. Please enter the information about the coins/tokens you wish to exchange to proceed. For instance, you can enter the amount of ETH you want to exchange for SOL. If the price changes during the transaction, a pop-up message will appear asking you to accept it. Note that it may take a few seconds to complete the transaction. Make sure to confirm the swap before finalizing the transaction. You can also confirm the transaction in the linked cryptocurrency wallet application. Please note that transaction time may vary from a few seconds to several minutes, depending on the selected networks.

Disconnect WalletConnect

After successfully completing the transaction, disconnect WalletConnect from the chosen cryptocurrency wallet. You can do this through the web browser or the cryptocurrency wallet application, depending on the platform you have chosen.

WalletConnect is a widely adopted and unique product that brings immense benefits to the DeFi ecosystem. It simplifies the process of connecting different wallets to multi-chain DApps, reducing confusion and complexity in accessing applications. WalletConnect v2.0 offers an even more user-friendly interface with features such as decentralized messaging, push notifications, and support for multiple chains. As the popularity of DeFi grows, WalletConnect provides users worldwide with a convenient solution for connecting to web3, facilitating secure cryptocurrency transactions and seamless interaction between any DApp and wallet.

Frequently Asked Questions

WalletConnect serves as a bridge that connects decentralized applications (DApps) with cryptocurrency wallets. Once connected, DApps can send transaction requests to the wallet through WalletConnect, requiring user signatures for authorization.

Is WalletConnect more secure than MetaMask?

WalletConnect and MetaMask are both secure methods of interacting with applications using desktop and web wallets. WalletConnect distinguishes itself with its security, supporting multiple blockchains and a wide range of assets. On the other hand, MetaMask is known for seamless interaction with dApps on the Ethereum network.

Which is better to use, MetaMask or WalletConnect?

While both MetaMask and WalletConnect are secure ways to access the web3 space, they serve different purposes. MetaMask stands out as a reliable wallet through which users can access various Ethereum DApps. WalletConnect, on the other hand, is specifically designed to provide seamless connections between decentralized applications (DApps) and cryptocurrency wallets.

Is WalletConnect free to use?

The WalletConnect protocol operates independently of any blockchain and is free to use. It is a collaborative effort by open-source developers from various wallet and DApp projects.

How to create a wallet in WalletConnect?

WalletConnect is not an application itself; rather, it is a bridge that allows you to connect your DApp to your cryptocurrency wallet. Using WalletConnect is as simple as opening a compatible DApp, launching a mobile or web DApp, connecting your wallet, and verifying your transactions.