Walletless Onboarding and Hybrid Custody Solution

Wallet-less onboarding refers to a process by which users can access and use digital services or platforms without the need to create or link a traditional wallet or payment account. This concept is particularly relevant in the context of financial technology (FinTech), digital services, and e-commerce. Wallet-less onboarding aims to streamline the user experience and remove barriers to entry, ultimately increasing user adoption and engagement.

  What is Wallet-less Onboarding?

Wallet-less Onboarding is the process of creating new users in a blockchain-based application, without the pre-condition of possessing a crypto wallet. Allow your users to sign up on your Dapp in the traditional Web2 way, using a username and password, while simultaneously creating a custody wallet for them in the backend. The custody wallet is a wallet created by your blockchain platform for a user. It is created at the time of sign up of the user. In a custody wallet, the platform manages the private key of the user. All blockchain transactions that a user wishes to perform are done by the platform. This way, a user gets to utilize the Web3 functionality without directly signing and initiating transactions.

Reduce friction in your blockchain application. Compared to other Web3 Onboarding methods, the traditional Web2 Onboarding methods have the advantage of being secure, familiar and extensive. With Wallet-less Onboarding, your Dapp will provide a seamless signing up experience to new users, as the barrier to entry of having a crypto wallet is removed.

  How does Wallet-less Onboarding work?

While signing up to a platform, your users will be able to register using the traditional Web2 login. In the background, a web3 custodial wallet (app wallet) shall be created for them and linked to their web2 account. This wallet will function as the interface for all their blockchain assets on your Dapp.

Wallet-less Onboarding is the smoothest Web3 Onboarding experience yet. Using this, you can sign up users on your Dapp without having them own a crypto wallet. This reduces onboarding friction and results in smoother and effortless adoption of your Dapp. Wallet-less Onboarding is a step towards letting your users adopt Web3 in stages, rather than bombarding them with new information at the time of sign up.

  What is Hybrid Custody?

Hybrid Custody is the state of crypto custody where the user’s crypto assets are managed through a platform generated app wallet, as well as a self-custodial wallet. Within the Dapp, all blockchain operations are performed by the app wallet. This provides a seamless UI experience for the user. In time, once the user is familiar with the blockchain ecosystem, they have the option to claim their assets. This is done via Account Linking. The user can link their self-custodial wallet (like MetaMask) with their app wallet. This enables them full control over their crypto assets. They will be able to continue using the Dapp while having the option to utilize their tokens on an external platform.

  Benefits of Wallet-less Onboarding

• Familiar UI and Usage: Wallet-less Onboarding as a Web3 Onboarding method reduces friction in your application. Users are able to onboard and use a Dapp in a seamless way with little to no experience of blockchain required. This increases usability and registrations.
• Traditional Payment: Any transaction that occurs on the blockchain is abstracted through the app wallet. The end user only needs to pay in fiat currency.
• Blockchain Abstraction: The users need not be familiar with Blockchain concepts and lingo. They can essentially perform all the functions in your Dapp without the hassle of creating and maintaining a crypto wallet.
• Blockchain Benefits: Users blockchain assets are linked to their app wallet. They can claim ownership of these assets at any time by linking their wallet and delegating ownership of their app wallet.
• Hybrid Custody: Hybrid Wallets allow users to maintain real asset ownership while simplifying usage experience through app custody.

  Frequently Asked Questions