Decentralized Finance Wallet Development Services
One of 2020s stark developments in the crypto space is Decentralized Finance. Traditional finance relies on banks, brokerages, and central authorities to provide services and arbitration. Users will never have full custody over their funds. But thanks to Decentralized Finance or simply DeFi, these services are now run by Smart Contracts built on the Ethereum Blockchain Network. This leaves intermediaries and arbitrators ineffectual, and mismanagement of crypto assets, breach of privacy, and more insubstantial.
For the smooth and efficient operation of DeFi protocols such as lending and borrowing, swapping tokens, providing liquidity, etc., a secure DeFi Wallet is necessary. All users need a secure, impregnable, and safe wallet since DeFi is a permissionless and independent system that is not backed by the government or customer support.
You can now provide ardent DeFi protocol users a protected wallet that will ensure that user’s crypto assets and coins are kept safely with several security measures like public and private keys, immune to security breaches. At Blockchain App Factory, we do exactly that and more. Our DeFi wallet development services are top-of-the-line in the crypto landscape, built by proficient developers. Our solutions in the DeFi space are commendable, and our DeFi Wallet Development solutions are sure to bring immense ROI for your business and increase visibility among users.
What is DeFi and why is it important?
Decentralized Finance or DeFi has made way for easy financial services for those who are not able to access them because of geographical or socioeconomic reasons. Built on the blockchain network and functioning on smart contracts, DeFi products make the need for intermediaries obsolete, saving money and time. It is an open-source and transparent financial system. The data and other transactional information are spread across thousands of nodes, offering users security and potential shutdown of the service futile.
Ever since its new all-time high in May 2020 regarding the number of users and locked assets, the DeFi crypto-sphere has spent some time in the limelight. Statistics have revealed that DeFi assets have grown 10 times since the year before. The DeFi market cap has been doubling, and the exponential growth of this sector cannot be ignored. And the main component when it comes to DeFi protocols and platforms are DeFi Wallets. Every cryptocurrency user will need one to initiate and process transactions in the DeFi space, and you can be the sole provider of this secure and protected DeFi wallet by partnering with our Decentralized Finance Wallet Development services.
DeFi Wallets and their indispensable role in the DeFi Ecosystem
DeFi wallets are asset management tools without which the DeFi ecosystem cannot sustain. In a centralized environment, users will have to rely on third parties like banks or custodial wallets to hold their funds, which were not always immune to breaches. DeFi wallets, on the other hand, are non-custodial in nature, allowing freedom, transparency, and accessibility, ushering the concept of being “one’s own bank”. With DeFi wallets, users can conveniently have access to a variety of activities like buying or selling tokens, token exchange, Dapp interaction, trade, borrow or lend, etc. This concept can be considered revolutionary since banks have been the sole handlers of an individual’s funds for generations.
Almost all DeFi Wallets are Ethereum native, meaning they support ETH, ERC-20 tokens, and ERC-721 tokens. Furthermore, other DeFi tokens will also be accepted and supported by DeFi wallets since the majority of them are Ethereum based.
The anonymity factor of DeFi wallets is quite appealing to users since centralized wallets require a myriad of personal and background information. With DeFi wallets, personal identity is never at stake. They are the safest option imaginable to hold crypto-assets, although users must be aware that once login information is misplaced, recovery of DeFi Wallets is problematic.
Core Components and Overarching Characteristics of DeFi Wallets
- DeFi wallets are the core element in Decentralized Finance.
- Non-custodial nature - DeFi Wallets are non-custodial which means the users will have full ownership of their funds and assets and are the only ones having access to them. Third-party custodians will not have authority over funds.
- Accessibility - DeFi wallets can manage and hold all crypto assets. Ethereum specific DeFi wallets furnish users with a platform to deposit not just ETH but other Stablecoins and DeFi tokens as well. The non-custodial nature of these wallets allows them to be accessed from all over the world.
- Key-Based security - DeFi wallet users will be provided with a private key, which is like a password imperative for initiating and processing transactions. This private key is unique to every user and they hold the responsibility of safeguarding it, unlike custodial wallets which can recover the key. These private keys are introduced with a 12-word seed phrase or recovery phrase with which users can gain access to DeFi protocols.
- Compatibility - all DeFi wallets are integrated with web3 wallets. With this connection, users can gain access to Decentralized Applications (Dapps) without having to leave the mobile wallet, since they are integrated with the Dapp browsers.
- DeFi wallets are completely exempt from data breaches, hacks, and provide security over funds.
- The users will have complete control and authority over the private keys.
- All non-custodial wallets can handle and manage multiple assets and Stablecoins.
- DeFi wallets are very flexible and are the doorway to a wide array of applications in the DeFi ecosystem.
Several Types of DeFi wallets
Web walletsThese types of wallets can be used only with private keys and be recovered only using seed phrases. A popular example would be Metamask, which provides users a portal to various DeFi applications like Compound, Aave, and Yearn. Finance. These wallets are equipped to support ETH and Ethereum based tokens like ERC20 and ERC721. The discernible drawback however is that the wallet provider cannot be relied on in instances of misplacing the private keys.
Hardware walletsThis DeFi friendly wallet is a hardware device, unlike digital wallets. They are separate from a computer or a smartphone so private keys and crypto assets are safe from hackers. This allows users to deposit huge amounts of crypto assets in these wallets. An extra feature of hardware wallets is that users of DeFi wallets like Metamask can create a separate account connected to the hardware wallet. An example would be Ledger.
Mobile walletsJust like any non-custodial wallet, mobile wallets like Argent create a new smart contract on Ethereum, controlled by the wallet user. Mobile wallets like Argent allow a social recovery set up where ‘Guardians’ who are trusted friends, hardware wallets, and other third parties can provide the approval to initiate recovery. Mobile wallets give its users options to freeze their wallets if need be and also set daily transfer limits.
DeFi DashboardsExamples of such DeFi wallets include Zerion and Zapper. These wallets allow users to view and analyze their consolidated portfolio at one spot. The focal point of these Dashboards is that other wallets like Metamask and Ledger can be connected with it to initiate financial transactions or just use it as a view-only platform for one’s portfolio.
Various DeFi wallets currently operating in the DeFi Space
Witness high returns in the DeFi space with Blockchain App Factory’s DeFi Wallet Development services
At Blockchain App Factory, we have a pool of expert blockchain developers and DeFi enthusiasts who are inspired to create products that meet international standards. And, our DeFi wallet development services do not fall short of it. The DeFi wallets we create are completely white label, giving your brand the highest visibility. With high security and complete decentralization, your DeFi Wallet users will be able to enjoy complete control over their assets and interact with other DeFi applications and Web 3.0 applications.
The total value locked in DeFi protocols and contracts is exponentially rising. Developing and launching a robust DeFi wallet now would be the prudent choice for businesses to witness remunerative gains. Connect with us soon so you can launch a pragmatic DeFi wallet and present users with a protected platform to manage their assets.