What are crypto wallets? How different are they from exchanges? What is their job to be done? where are they weak? What is the potential and future they hold Brought to you by @ZenGo

1. The future of (crypto) wallets

2. Ouriel Ohayon
CEO @ZenGo

3. What is a wallet ?

4. 600 BC 1700 1950 2000 2012 2015

5. 600 BC 1700 1950 2000 2012 2015

6. 600 BC 1700 1950 2000 2012 2015

7. 600 BC 1700 1950 2000 2012 2015

8. 600 BC 1700 1950 2000 2012 2015

9. But money and digital assets evolved
Scarce
On Chain Cryptographic

10. What does a crypto wallet do

11. ● Custodial banks
● Funds Controlled by a corporation
● Exchanges
● Your bank + crypto
● Governments entity
● “off-chain” system
● hosted
What crypto wallets are not

12. Why custodial wallets and exchanges won
(by far) so far

13. ● Speedy trading fiat-crypto on/off ramp
● high convenience and familiar
● Best fees
● Compliance stack
● (partially) Insured “vaults”
● Account reset if lost
● Hyper-profitable
● Single point of failure
● Abusive withdrawal fee schedule (up to 10x)
● Trust-based
Custodial systems are the greatest on-ramp

14. ● The raise of the web 3 economy
● Cannot connect to Dapps
● Crypto jails to funds lock-in
● Compliance, caps, censor
● Siloed identities
● Non-portable and local
● Tedious and expensive opsec
● Funds moving out of exchanges
Custodial systems are necessary
but unfit to web3

15. ● Key management and recovery controlled by users
● “on-chain” assets support (tokens, NFTs,….) and portable
● Crypto security (transaction protection, phishing)
● Transactional services (send, receive, history)
● Financial interfaces / services (buy, sell, trade, earn, stake,
cards, history, tax connectivity)
● Web 3 connectivity (dapps, defi, ENS, identity,..)
● Customer experience (support, education, ..)
● Trust-minimized and private
● Bonus: entreprise wallets vs personal wallets
What crypto wallets (should) do

16. You are your wallet

17. Wallets are primary interfaces
to the native crypto economy
…where the crypto journeys
start and finish
Wallets are the new (Google/Facebook) sign-up…

18. 600 BC 1700 1950 2000 2012 2015
Cold/ Hot

19. Extensions, social logins, multi-sig

20. Non-custodial Wallets have weak spots
● Intimidating: Be your own CTO
● Atomized (who wants tens of wallets?)
● On-chain means slower and more expensive
● Fees everywhere
● Fiat-crypto is sub-par compared to exchanges
● Cumbersome to use (onboarding, extensions, cables,…)
● Unclear sustainable business models (hardware, free
downloads)

21. Wallets were not suited for mass adoption

22. Why?

23. Crypto is hard and wallets are harder

24. Security is UX and UX is Security

25. The seed phrase of death

26. So much can go wrong
● Prone to errors (too many wallets, seed back up errors…)
● Account take over: anyone can use your seed backup
● Malicious smart contracts
● Legit smart contracts hacks
● Abusive contract approvals
● Lost private keys
Your wallet is not your wallet

27. The future of wallets: crypto remote controls
Multisig / MPC Passwordless
Customer Happiness
$
Multi-Asset
Multi-function
100% mobile Non-Custodial

28. Biometrics (not passwords) is the future

29. Wallets as the web 3 guardians

30. Wallets are pimary interfaces that
can and should protect from
● Malicious contracts
● Abusive permissions (or ice phishing)
● Blind-signing (clarity of contract)
● Rug-pulls (reputation)
● Rogue addresses (scammers)
● Wallet spam (abusive airdrops)

33. zengo.com/podcast

34. Stay Zen
www.zengo.com