How does a Web 3.0 Wallet work?
A Web 3 wallet is a tool that lets you access the Web 3.0 economy, which is kind of like the latest version of the web, where users have much more control over their data and privacy and can get more use and value out of it instead of letting tech giants like Google or Facebook take advantage of it.
Given how important control and privacy are, a web3 wallet development does not hold your money. It means you can store digital assets safely without having to trust a third party. This means you don’t have to go through difficult KYC/AML processes, which protects your privacy and anonymity.
On the other hand, you have to take full responsibility for keeping those assets safe by using something called a “recovery seed,” which will be explained in the steps that follow.
There are already a lot of non-custodial crypto wallets on the market, but web3.0 offers a completely different user experience that is more like desktop apps than mobile apps because the interactions are too complicated for a small screen.
Web3.0 wallets are a great way to access a wide range of crypto applications that run on blockchains, such as Decentralized Finance (DeFi), Gaming, and Non-Fungible Tokens (NFTs). These applications are best accessed and used through a desktop browser since processes often run in the background, and your browser notifies you of activity. MetaMask is one of the most popular Web 3.0 wallets.
Introducing MetaMask
MetaMask is a non-custodial browser and mobile crypto wallet that focuses on the Ethereum ecosystem. It can also be used to access other blockchains by configuring them within the wallet.
Being non-custodial, it allows users to protect their identity but interact seamlessly with Ethereum-based applications. It lets users send and store cryptocurrencies that use the common format for Ethereum, called ERC-20, and make transactions to any Ethereum address by default.
Security is handled by a recovery seed, which is the same for all non-custodial wallets. Private keys for each wallet are kept locally in your browser’s data store.
MetaMask recently had more than 21 million monthly active users. The growth of NFTs and DEFI is driving exponential growth each year (x38 from 2020 to 2021). MetaMask is the top brand in the web3.0 wallet category, so this growth is likely to keep going.
The wallet gives its users the following:
- A way to get into the decentralized finance ecosystem so that you can spend tokens on decentralized apps (dApps)
- A way for DeFi protocols to stake tokens
- A way for decentralized exchanges to trade tokens (DEXs)
- A spot to keep NFTs
- A place where Web3.0 apps can be accessed
How to begin with MetaMask
MetaMask can be used as a browser plugin or as an app. Anyone can get it on their phone or computer, just like any other add-on. We’ll look at each one on its own, breaking down how it’s set up and what it does.
Go to the web store for Chrome or Firefox and look for “MetaMask.” Make sure to choose the official version when you download and turn on the extension in Chrome. It will show that more than 10 million people have used it.
MetaMask can also be used with any Chromium-based browser. This means that you can use it with any open-source browser that is based on Chrome code.
Click on “Start Now.” Most people will need to follow the “Create a wallet” prompt to do this. But if you already have an ERC20 wallet, you can import it at this point.
You’ll be asked to make a password. Make sure it’s strong and hasn’t been used anywhere else, if possible. You can use the password to get into the wallet every day.
Next, you’ll be asked to make a recovery Seed, which is an important part of setting up your browser wallet. This is the only way to get all of your money back if you lose access to your computer or your Google or Firefox account. You need to write down and save your seed phrase. If you write it down on paper, you can laminate it or put it in a wallet that won’t get wet. Don’t put it on the web.
The address of your account and wallet
Now that you’ve set up your MetaMask wallet, you have an Account with an Ethereum address that lets you receive and send tokens based on Ethereum. Under “Account Details,” you can click on the three dots to give your account a specific name. You can also copy and paste your address or scan it from your phone as a QR code.
You can use these address details to get tokens that are based on Ethereum. You’ll get a browser notification when they arrive, and they’ll show up in the Assets list below, with the related transactions under the “Activity” tab.
If you scroll down and use the “Import Tokens” option, you can create any tokens that are not automatically supported as long as they are based on ERC20.
You can also send money to any other Ethereum wallet by using the Send function. The transactions will show up in the tab called “Activity.” Click “Send,” choose the token you want to send, and then add the address of the person you want to send it to.
Remember that you would have to pay the gas fee if you wanted to send tokens. You’ll be given three options that vary in speed and cost. Choose the one that makes the most sense based on how quickly you need to make the transaction.
You can make more than one account, and you can switch between them by clicking on the icon for your account in the top right corner.
With your MetaMask wallet open, you can go to the websites of dApps and DEFI protocols, connect using your wallet and share only your Ethereum address. You’ll see a screen where you can approve transactions, and all of these connections will be in your wallet.
ENS domains are a very useful feature that MetaMask supports. They can be used as proxies for long Ethereum addresses that are hard to remember. So, instead of your address, you get a simple domain like yourname. Eth, which can be used to receive money.
You can buy and sell within your browser wallet.
If you don’t have any Ethereum-based tokens, you can use the wallet’s “buy” feature to get some. You can use Wyre to buy cryptocurrency with your bank or credit card, and it will be sent straight to your account.
You can also swap tokens you already own by sending them to your wallet address and then using the ShapeShift integration to swap them.
Click “Swap” to trade tokens. Choose the tokens you want to trade, but pay attention to the gas fee. You can’t directly trade tokens in the app version of Metamask. Instead, you have to look for a third-party app in the mobile app browser extension.
Putting together multiple blockchain networks
MetaMask sends and receives transactions through the Ethereum network by default, but you can also use other blockchain networks to move money.
The dropdown menu at the top of your browser wallet is currently set to “Ethereum Mainnet.” Choose this to add a new next, like Binance Smart Chain. You only have to give three pieces of information: The Chain ID, the Network Name, and a new RPC URL
