The Benefits of using a web3 wallet: Why it's the future of digital asset management
You might have already heard the sales pitch of web3: decentralization, self-custody, smart contracts that provide new financial products. But why do these factors benefit us, really? And are these benefits so important that the whole world will eventually adopt web3 wallets as their primary asset management tool?
Financial inclusion and borderless transfers
To start with, web3 wallets give you full ownership over your funds. With the self-custodial nature of web3 wallets, anyone can store their funds in the blockchain, which is accessible through their web3 wallet. This is particularly game-changing for individuals who do not have access to personal banking. Globally, nearly 1.7 billion people do not have access to traditional banking services and do not have a bank account. This is often due to the high cost associated with setting up an account, lack of trust in the financial system, or lack of required documentation. These factors make it difficult for many individuals to open and maintain a bank account.
With a web3 wallet, the user has complete control over their digital assets and can easily send them to anyone with a valid wallet address, regardless of their location. This eliminates the need for costly and time-consuming international wire transfers or the need to go through a bank or other financial institution. Additionally, web3 wallets are built on blockchain technology which enables cross-border transactions to occur in a faster and more secure way, as it eliminates the need for intermediaries and provides a tamper-proof record of all transactions.
Access to decentralized finance
Web3 wallets are not just a new way to store your digital assets, but they are also the gateway to the world of decentralized finance (DeFi). DeFi is a financial system built on blockchain technology that allows for the creation of decentralized financial applications and services that can operate without the need for a central authority. The superpower of DeFi is its accessibility and innovation of new financial products.
DeFi provides open and accessible personal banking to everyone. Users can lend and borrow assets quickly and without restriction, unlike traditional banking where the process can be lengthy and some may be denied access. This opens up financial opportunities for a wider range of people and gives them more options and flexibility in managing their finances. Additionally, DeFi is accessible globally through an internet connection, expanding the reach of these financial services and increasing adoption compared to traditional finance.
Mark Cuban on Why DeFi is the future - Bankless Podcast
DeFi also offers a wider range of financial services and products than traditional finance, which can give users more options and flexibility. For example, DeFi platforms allow for the buying and selling of non-fiat assets, such as gold or real estate, using smart contracts, which is not possible with traditional banks. DeFi also allows for many new ways to generate yield, for example, lending, borrowing, staking, liquidity provision and more. This creates new forms of passive income and new investment opportunities, which can attract more users to adopt DeFi.
Web3 wallets are not only a secure and convenient way to store digital assets, but they also provide access to the world of DeFi. By simply setting up a web3 wallet, users can quickly and easily access the wide range of financial services and opportunities provided by DeFi. This is an exciting development, as web3 wallets are the key to unlocking the full potential of DeFi and taking control of one's financial future.
Everything traditional finance offers and more
Web3 wallets offer most of the same services as traditional finance but with greater control and security. With web3 wallets, you have full ownership and control over your assets, eliminating the need for centralized intermediaries and minimizing the risk of fraud or hacking. Most people use their bank accounts for:
Saving or storing money
Investing in bonds and stocks
Web3 wallets allow you to do all of the things above more efficiently and cheaply. Additionally, unlike with banks, you don’t need to pay interest for accessing your funds with a web3 wallet. Many people from regions that encounter economic or political instability use web3 wallets to save their money in stablecoins. For instance, the Brazilian Real (BRL) has been devalued by over 200% when compared to the USD over the last 10 years and as a result, has decimated Brazilian’s savings in their domestic currency. Additionally, the Brazilian government has implemented capital controls on foreign currencies and Brazilian bank accounts can only hold Brazilian Reals. This has left many Brazilians desperate for an alternative to their local currency and ideally one which is pegged to the US Dollar to protect their savings. Stablecoins offer exactly that, enabling Brazilians to participate in global markets and tie their savings directly to the US Dollar; an opportunity that can’t be taken lightly.
50% of volumes on BRL pairs involve a stablecoin - Kaiko
Although DeFi already provides many of the services that traditional finance currently provides , it's important to note that the web3 ecosystem is still rapidly evolving and carries its own set of risks and uncertainties. As the technology and infrastructure continue to improve and more people adopt web3 solutions, it has the potential to replace traditional finance altogether. As the infrastructure matures, the web3 wallets will provide more opportunities and financial services, giving users more control over their assets and more freedom in how they manage their money.
Web3 wallets are not just a new way to store and manage digital assets, but they are also revolutionizing the way we monetize content on the web. With web3 technology, content creators can now monetize their work directly, without the need for intermediaries such as advertisers or platform providers. This means that creators can receive payment for their work in a more efficient and transparent way, without having to give up a portion of their earnings to middlemen. Additionally, web3 wallets facilitate easy and seamless international money transfer. With a web3 wallet, anyone, anywhere can easily receive transfers, giving more opportunities for creators to earn revenue from their content, regardless of their location. This opens up new possibilities for monetizing content, and has the potential to democratize the way we monetize digital content and assets
Omni - the ultimate Web3 wallet
As a multi-chain Web3 wallet that supports over 25 networks, including most major blockchains, Omni is the perfect choice for users who are looking for a feature-packed, user-friendly solution for interacting with Web3. The Omni wallet is suitable for both beginners and advanced users, as it makes advanced Web3 functionality simple and accessible. Omni is known for its speedy and helpful customer support, and its self-custodial wallet ensures that users have sole access to their funds. In addition, Omni supports Ledger hardware wallets, making it easy for users to integrate their hardware wallet and interact with Web3 through the platform. Omni also make DeFi earning a breeze with a simple 3-step process for staking on major networks, lending via Aave, and depositing into Yearn yield vaults. Plus, our wide range of NFT support and slick NFT display UI allows users to decorate their wallet with their favorite NFTs. Omni is a function-packed and easy-to-use solution that is perfect for beginners and advanced users looking for simplicity!