Wallet Wars: Why They All Suck

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LayerOneX
@LayerOneXJun 24, 2025

The Spaces features a discussion on the pitfalls of crypto wallets, with host Cody and panelists Joel, Alex Davis, and Adam exploring why they 'suck'. Key topics include the complications in managing multiple wallets due to poor UI/UX, security risks from seed phrases, and the lack of integration with decentralized finance protocols. Panelists offer insights into ideal wallet features, emphasizing the need for intuitive user interfaces, biometric security, cross-chain atomic swaps, and the ability to store user data securely. There's a consensus that crypto wallets should evolve into comprehensive applications to improve the user experience.

Summary of Recording: Wallet Wars Discussion

Overview

The discussion, hosted by Cody, featured several panelists: Joel (Dash), Alex Davis (Mavericks), and Adam (Songjam). The primary focus was on the issues with current crypto wallets and envisioning an ideal wallet solution.

Key Topics Discussed

1. State of Current Wallets

  • Joel expressed frustration with current wallets, despite using them for over 12 years. He appreciates the Dash wallet's features like instant transactions and security but acknowledges its imperfections.
  • Alex Davis criticized wallets for poor UI/UX, noting even leading wallets lack basic functionalities like transaction timestamps. He emphasized the importance of comprehensive teams in product development beyond just developers.
  • Adam highlighted the debate between self-custody versus custodial solutions, expressing concerns over security and user-friendliness.

2. Challenges of Multi-Wallet Management

  • Joel discussed that managing multiple wallets is often due to backup complexities and the need for different wallets for various security purposes. He suggested a connected but secure ecosystem to manage these wallets.
  • Alex emphasized the need for integration within a single wallet, arguing that wallets should have a seamless UI/UX experience similar to traditional banking apps.

3. Security Concerns

  • Alex Davis argued for non-custodial solutions using MPC (Multi-Party Computation) to bypass the complexities of seed phrases, which are burdensome for non-technical users.
  • Joel suggested that physical security measures, like NFC-enabled cards, could enhance wallet security and create more intuitive user experiences.
  • Adam proposed community recovery as a valuable method for recovering lost credentials rather than solely relying on individuals.

4. Vision for an Ideal Wallet

  • Panelists agreed that an ideal wallet would integrate multiple functionalities seamlessly, supporting multi-network operations and enhancing UI/UX to make it user-friendly while maintaining security.
  • Integration with protocols and frameworks for a unified interface was emphasized as vital.
  • Joel mentioned tangible NFC-based interactions that would simplify user access to their crypto assets.
  • Alex and Adam suggested utilizing technology like biometrics and AI for user authentication and data management within wallets.

5. Future Innovations and Concepts

  • The idea of a ‘Super App’ wallet was proposed, integrating DApps and services to create a more streamlined and secure user experience.
  • Cody and others advocated for an approach that personalizes the wallet to operate across platforms with minimal disruption, focusing on increasing security and reducing user friction.

Conclusion

The panel concluded that the key to better wallets lies in focusing on both comprehensive security measures and an enhanced user experience. The discussion highlighted the urgent need for innovations that would simplify wallet operations while ensuring robust security controls.