When stablecoins are incorporated into the compliance process through legislation in the United States and Hong Kong respectively, and when financial institutions such as Bank of America, Societe Generale, JPMorgan Chase, Citi, Visa, and Mastercard either launch stablecoins or are paying attention to stablecoins, it means that cryptocurrencies are gaining more and more attention from the market and mainstream people.
The rise of cryptocurrency is based on the improvement of a series of crypto-financial (DeFi) infrastructures . Among them, cryptocurrency wallets, as on-chain financial tools for payment and transactions, carry value and play a vital role in the entire Web3 ecosystem.
In fact, cryptocurrency wallets were launched earlier than other areas of the Web3 ecosystem, and the layout of financial infrastructure was earlier than other Web3 projects. The well-known decentralized wallet MetaMask was launched in the market as early as 2018, and the decentralized cryptocurrency Bitcoin was also born in 2008.
Why does Web3 need cryptocurrency wallets? Can payment tools such as Web2 wallets be used as cryptocurrency trading vehicles? What role and value do cryptocurrency wallets play in the entire Web3 ecosystem? This article analyzes the above questions.
Why Web3 needs a cryptocurrency wallet
Generally, we assume that legal currencies such as USD, GBP, and RMB are paid and traded through mobile applications such as banks, UnionPay, or third-party payment company applications, while decentralized cryptocurrencies based on chains require decentralized wallets. We cannot imagine Bitcoin being traded through bank mobile applications, nor can we imagine USD being traded through MetaMask.
The public needs the decentralization of Web3 wallets to further ensure the decentralization of cryptocurrencies so that they are not controlled and managed by centralized institutions, enhance their transparency and security, and make them easy to trace. At the same time, they also hope that the transactions and circulation of cryptocurrencies are open and transparent on the underlying ledgers, so that the ownership of the currency can truly belong to themselves.
Web3 requires cryptocurrency wallets. The essence of this is that cryptocurrency not only serves as a payment currency, but also serves as a diversified function in the fields of on-chain economic models (including incentive mechanisms), DeFi staking, DAO governance, etc. This is something that legal currency cannot do, and it is also something that mobile applications such as banks cannot achieve.
What role does the cryptocurrency wallet play in the DePIN ecosystem?
Taking the decentralized cloud computing power PowerVerse project in the DePIN field as an example, PowerVerse has its own native token PowerVerse Coin (PEC) and cryptocurrency wallet Token 123.
The PowerVerse ecosystem requires the cryptocurrency wallet Token 123 as the carrier of PEC. PEC will be used as the transaction and payment currency for computing resources, which can achieve 7*24 hours instant settlement and liquidation, and improve the operating efficiency of on-chain finance.
PEC is the user's cryptocurrency asset, and the user can use it for pledge, lending and other transactions. For example, it can be exchanged for other types of cryptocurrencies, purchased financial products of decentralized exchanges (DEX), entered into the exchange's fund pool for pledge, and so on.
PEC can be used as a governance tool for users in the PowerVerse project, such as staking and maintaining nodes in the PowerVerse computing ecosystem, and as a voting tool for DAO members.
The usage scenarios of the above-mentioned project tokens are inseparable from the cryptocurrency wallet Token 123 as a payment and integration tool.
Token 123 will also integrate social chat functions to meet the social connections between users and friends, support flash exchange functions with other cryptocurrencies, and provide staking services.
Conclusion
In any case, the launch of cryptocurrency and cryptocurrency wallets is an indispensable part of the DePIN project. This indispensability reflects the decentralized nature of Web3 and the characteristics of the DePIN project's deep integration of crypto finance, and its purpose is to fully release the value of the decentralized physical infrastructure network in the decentralized network.
