Whenever a person who is new to the cryptocurrency world buys their first cryptocurrency, one of the top points on their to-do list relate to finding a secure wallet to have them access their beloved coin(s) on the blockchain while keeping them safe from the grubby hands of hackers and thieves.
This holds true whether said cryptocurrency is Bitcoin, Ethereum, or any other “altcoin” out there. Due to this reason, several companies have come to surface in recent times, offering wallet services that holders of cryptocurrencies could access through their web browser or phone to access their assets on the blockchain. This also includes hardware wallet products, which keep the cryptocurrencies safe within their own cold storage – just like a normal wallet would keep cash safe.
That is why, when one of said wallet providers states that a blockchain as popular as Ethereum might not have wallets in its future, it makes it worth a mention for everyone to read.
The detailed views pertain to specific points
Elaborating on the idea, she mentioned that Ethereum’s primary use case so far has been to facilitate the creation of new ERC20 tokens, which almost always leads to the new ventures behind these tokens to have their own initial coin offering (ICO).
Monahan stated that while this remains the most apparent use of Ethereum for now, its use cases in the future are going to evolve. Speaking on potential use cases, she presented the idea of decentralized versions of popular centralized apps, such as Uber and Airbnb.
She mentioned that in order for the blockchain to evolve, it will need to come up with these decentralized applications (DApps), which will not just ensure that the currently centralized applications not only benefit from the added security, lower operation costs, and higher transparency and functionality of blockchain technology but will also work towards higher adoptability from increased number of users.
Seeing that this is a logical approach, Monahan then presented the question on how the payment operations will work on these DApps.
She asked if anyone who uses Uber actually has to go to their bank’s website to process required payments on the app?
And then proceeded to answer the question herself by an obvious “no.”
Monahan explained that since these centralized applications in their current form actually allow faster payment transactions which are facilitated by smaller feature segments within the app, thinking that their decentralized counterparts would be okay with the option of going to a separate wallet to complete any transaction does not make sense.
This served as the backbone of Monahan’s argument, where she continued to mention that if blockchain is to evolve to the point of replacing the current system of apps as we know it, then thinking that wallets in their current form will be outdated only seems logical.
She mentioned that wallet developers would need to come up with solutions are seamless, work behind the scenes, and allow faster accessibility of funds for users of these future DApps than they do in their current state.
That being said, Monahan had to agree that the wallets in their current form would still be valuable to use for “hodlers” or people who do not want to use their cryptocurrencies within everyday apps. However, she mentioned that to offer wider usage for people who would like to use cryptocurrencies more as a means for transactions than an asset to keep in their safes, the evolution of wallets has to be on the cards for their developers.
A problem with no apparent solution for now
While Monahan presented this notion that raises a lot of questions, she could not come up with a tangible solution for this besides casually stating services such as the Mist browser and MetaMask browser extensions, and admitted that this is only what his mind points towards for now, and he thus wanted to share it with the community, so anyone who is interested in dabbling in it could go ahead in doing so, while he himself would continue thinking about how such solutions could work.
How effective is this idea?
While the idea does make sense if you think about it as coming into action a few years down the road, the way that blockchain developers continue to strive to find new solutions every day in order to keep up to date with the ever-evolving nature of technology alludes to the idea that someone, eventually, will find a solution to make DApps work with seamless payment systems.
With most DApps only existing as an idea, for now, this particular set of functions has got some time to develop, but since technological innovations take years to perfect, it might be the best time for relevant developers to start looking into this.