With decentralized finance gaining significant adoption across the globe, the demand for decentralized wallet development is growing.
According to DeFi Pulse, in February 2021, the total value locked (TVL) in decentralized finance marked a new all-time high with $40 Billion. But, what makes DeFi wallet so much popular among crypto enthusiasts? Let’s understand.
A decentralized finance wallet or a DeFi wallet enables users to exchange cryptocurrencies without the involvement of any middleman. Instead of authorizing a central authority to control transactions between two users, a DeFi wallet drives direct, peer-to-peer transactions.
While decentralized wallets are used to make crypto transactions currently, they are opined to facilitate P2P transactions to make a significant impact on the traditional financial systems.
Reasons for the increasing popularity of DeFi wallets
- Non-custodial: Unlike centralized wallets, decentralized wallets provide users with access to their private keys. As the only holders of private keys, users have complete control over their funds.
- Accessibility: DeFi wallets can be accessed anywhere across the globe, anytime, irrespective of any geographical location.
- Compatibility: DeFi wallets or non-custodial wallets are accessed by connecting a web3 wallet. The wallet accesses web 3.0 to send/receive Ethereum, interact with DeFi apps or smart contracts.
While it is certain that decentralized finance wallets are significantly more secure than their centralized counterparts, it is important to note that they are not entirely bulletproof. So, whenever you want to develop your own Decentralized Finance wallet, it’s good to partner with an experienced and reliable decentralized wallet development company. These companies have seasoned blockchain engineers who not only take care of the development but also emphasize ensuring high-level security for the wallet.
DeFi wallets play a significant role in the success of the whole DeFi ecosystem. A decentralized wallet allows its users to manage their assets and interact with other DeFi apps as well. DeFi wallets are the best alternative to centralized finance and conventional banking. Despite how new the industry is, DeFi has made outstanding progress and it’s clear that DeFi is here to stay.
If you are planning to develop a DeFi banking wallet, Antier Solutions can help. We provide a white label banking wallet packed with all essential banking features – such as bank accounts, payments, credit/debit cards, trading, lending, and user onboarding. Available as a white label solution, our wallet expedites deployment and enables you to tap into the digital asset market quickly.
In addition to providing a white label solution, we specialize in building a custom decentralized wallet from the ground up.
Schedule a free demo of our white label decentralized wallet solution or connect with our subject matter experts to share your needs for a custom wallet built from scratch.