Welcome to the (multi-chain) cross-chain world - where the usability is not the only meta-challenge we are facing. Despite Ethereum’s dominance regarding decentralized applications and DeFi, we have arrived at a multi-chain world, where several blockchains are here to stay. Platforms like Binance Smart Chain, Terra, Solana, and others have acquired a critical user base and some kind of differentiation. Ethereum’s sidechains (like Polygon) and layer 2 solutions (like Arbitrum or Optimism) are helpful but add even more complexity.
So do we live in a multi-chain world? Yes, but it is even believe we can call it a cross-chain world. Interoperability is one of the most important topics in 2021, and for a good reason as we want our digital assets and collectibles (e.g., in the form of NFTs) to be valid and liquid across different blockchains — ideally without the need of an intermediary. This is a reason for the success of projects such as Thorchain, as they allow the transfer of value between multiple different blockchains. Other solutions (blockchains or protocols) try to bridge at least a handful of different blockchains with each other (e.g., Kava, Sushiswap).
xDEFI Wallet tries to solve both of these problems by focusing on an intuitive user experience and managing multiple crypto assets across different blockchains. Furthermore, the XDEFI team is a firm believer in a multi-chain future, which the following statement underlines:
xDEFI does not believe that the entire crypto ecosystem will exist on only one network. Instead, we believe in a multi-chain future. For that future to emerge, we need to build more effective cross-chain infrastructure. - xDEFI Wallet
XDEFI Wallet will first be available as a browser extension for Chrome and Brave — due to its main focus on interacting with Web 3.0. Other implementations (support for more browsers, desktop wallet, mobile wallet) will very likely follow with increased adoption.
Features of xDEFI Wallet
In order to have a competitive advantage over other crypto wallets at the moment, a self-storage wallet must ensure the following factors:
- Receive, send and store digital assets irrespective of their native chains
- Connect to any blockchain application
- Swap seamlessly between protocols
- Manage multiple parallel accounts and crypto assets
- Access native DeFi features
- Manage and visualize collectibles (NFTs)
In terms of the above factors, Metamask - the direct and also the biggest competitor of xDEFI - can satisfy all of them and has become the most commonly used wallet, reaching more than 10 million users so far. So with xDEFI, which also has the same features, but the transaction processing speed is superior (on average, each transaction is estimated 10-15 seconds), we can fully expect it to break the monopoly of Metamask in the future.
Besides the indispensable elements of a crypto wallet, during the application development process, most recently in the 7.0 update version, the dev team has added many improvements and new features such as:
- Ape Mode: xDEFI Wallet with Ape Mode is said to use a proprietary gas algorithm to provide faster transaction throughput to users. According to Dubié, Ape Mode will be an indispensable advantage for DeFi and NFT users.
- Optimised for EIP-1559: Unlike MetaMask’s recent redesign, xDEFI has a new easy-to-use UI in response to EIP-1559. This allows users the maximum benefit from Ethereum’s London hard fork while still maintaining an accessible interface.
- xDEFI Focus: xDEFI provides automatic wallet NFT detection as well as grid visualization for collections.
Preliminary first comments about the xDEFI wallet project
There are several criteria that will influence the success of XDEFI Wallet, some can be directly influenced by the team but some are depending on outside factors. Let’s go through them:
- Cross-chain activity will increase: If we continue to see Bitcoin and Ethereum getting viable adoption, cross-chain interoperability and the handling of multiple crypto assets across multiple blockchains will get a daily activity for many. Only a few wallets allow for this combined with web3.0 support.
- Thorchain gets significant adoption: Thorchain is not only the incubator behind XDEFI Wallet, it is also one of its main use cases as practically all activities on Thorchain (like swapping and providing liquidity) involve transactions across multiple blockchains.
- Competition: MetaMask has an incredible high reach and powerful backers. If it — or other widespread tools like Trust Wallet — improve UX significantly and offer cross-chain support, XDEFI will feel the pressure.
- Integrations: Any Web3.0 wallet is only as useful as the underlying protocols and decentralized applications it supports. Although you can already use XDEFI as an alternative to Metamask, adoption will accelerate if XDEFI Wallet is supported by default from as many platforms as possible, especially across chains. On the other side, XDEFI can unleash additional growth potential by supporting additional blockchains that offer DeFi applications such as the Terra or ICON blockchain.
- Userbase growth: Obviously, the overall adoption of cryptocurrencies and blockchain-based applications will be a deciding factor in the growth of XDEFI Wallet. If we assume that the peak of new users has been reached in this cycle, the number of users can only be increased by replacing existing solutions.
- Development: The most leverage XDEFI has is — next to marketing and community engagement — the speed and quality of new and improved functionalities. Time will tell, if XDEFI focuses solely on the wallet/web3.0 functionality across as many chains as possible (including desktop and mobile support) or if the team decides to expand their product horizontally across adjacent use cases like portfolio management (e.g. Zapper, ApeBoard) or built-in swapping/trading (e.g. TrustWallet, Coinbase Wallet).
- Community building and a potential token: Right now, XDEFI is strongly focused on building a loyal community. Will they be able to maintain this spirit with a bigger user base and increased complexity?
- Many crypto software platforms and wallets also decided to issue their own token, partly to increase user loyalty. This trend has seen additional traction throughout 2020 and 2021, therefore we can probably suspect an IDO later down the road.
To sum up, we would say it was about time that we see a new strong competitor to MetaMask in the web3.0 wallet market, especially as we entered a cross-chain crypto world. This development cannot be underestimated from a user perspective as additional competition will force market participants to step up their game, focus more on UX and consequently attract a broader target market.