Simplified Web3 Onboarding Operated by Spatium SDK
by Spatium Team on Oct 12, 2023 7:39:22 AM
Several years ago, the buzz about crypto and web3 started growing enormously. Companies and businesses worldwide suddenly felt the urge to go into the crypto space, conquer web3, and onboard their clients. Some of the projects have been very successful and some have become a complete failure.
As an example, we can take two companies: Nike and Porsche. Both of them rushed into the NFT craze, Nike in 2019, and Porsche at the beginning of 2023. Two of the companies issued NFT and connected the web3 collectibles with their real-world products.
The only difference is that Nike soared and the Porsche web3 marketing campaign went wrong. What are the reasons, we can only guess, but maybe a lack of frictionless onboarding was one of them.
All these cannot but lead to the realization that companies as well as users should be familiar with web3 onboarding strategies and have some experience in it. People need to be educated on how to use web3 wallets, monetize on chain achievements, and make peer-to-peer transactions, etc. But at the same time, businesses require much help with web3 onboarding as well.
When a brand is looking in the direction of web3, experimenting with various ways to generate value, and testing new forms of product ownership, they have to obtain the best web3 tooling: advanced, secure, and reliable. A web3 wallet which is primarily and so far the only means allowing businesses to onboard their clients to web3 is among them.
Web3 Onboarding Challenges for Businesses
Unlike cozy and well-known web2 with its back-end architecture, cloud services, and third-party integrations, web3 onboarding imposes new experiences. Complicated blockchain architecture, an unprecedented amount of encryption, and various third-party integrations just to name a few.
Let’s go through the main challenges preventing users from exploring the web3 ecosystem and as a consequence eating more company resources to build their brand in web3.
1. High Level of Complexity
Being a nascent ecosystem, web3 is still shaping itself and these processes are reflected in the adoption of some disruptive technologies. Not many IT development companies know how to properly use them. Some concepts of decentralized finances, blockchain architecture, and complicated encryption protocols could be challenging for both companies and their clients which slows down their web3 onboarding.
2. Steep Learning Curve
One of the first things that hits a company is that web3 solutions including crypto wallet don’t normally provide similar to web2 user experience. Web3 onboarding processes could be confusing for users and companies, who have to spend more effort on educating their customers. If the learning curve is too steep and too long, it could be a serious obstacle for users to proceed.
3. Privacy Concerns
Based on the decentralized and pseudonymous nature web3 is an easy target for malicious actors. They know that scamming right and left in web3 is much easier than in the centralized and heavily regulated web2, so they use every single chance they can. In such a situation, companies, who are onboarding their customers to web3 should be responsible for making users’ assets and data secure. Companies should educate themselves on the types of crypto custody and figure out which solutions could match their clients’ expectations best.
Main Strategies to Onboard Your Customers to Web3
There are several ways companies onboard their clients to web3. As long as each of the ways provides customers with facilitated onboarding processes, the company's growth in web3 will be smooth and soaring. Web2 customers are used to easy sign-up methods: via email, Google sign-up, Apple sign-up, phone number, etc. That’s why to retain clients and embrace new ones, businesses have to make web3 onboarding as user-friendly as possible.
The idea is to take away the hurdles of private key adoption. One of the best-in-class crypto wallets that are keyless are MPC wallets. MPC technology simplifies private key storage and activation so users don’t worry about its technical complexities. Check one of our articles about MPC encryption technology and the way it assists in simplifying crypto wallet operation. At the same time, MPC technology ensures that the digital assets are highly protected and secure.
Let’s discuss what are the main strategies companies and businesses may use to bring their customers to web3 and open up a new world of possibilities.
1. In-house Crypto Wallet Development
Traditionally companies used to embrace the idea of having their own web3 crypto wallet development team to make sure that the core wallet code is robust and the web3 onboarding is seamless. This option is sound as it gives the business full control over the development processes, but there are two main downsides.
Firstly, in-house development takes a longer time to market. Based on this it could be a problem to compete against the rivaling businesses who might follow a faster strategy.
Secondly, this option increases the budget for the development: including coders’ reeducation and time to obtain the needed extra training to cover all possible insecurities that might occur in blockchain.
2. Outsourcing Crypto Wallet Development
Outsourcing is a well-known practice in the modern world. Based on the living standards in various countries, some programmers ask for the same amount of work for a completely different amount of money. A San Francisco-based blockchain developer and a Poland-based one will charge the company a significantly different sum for their work with absolutely the same quality of the codebase.
Outsourcing may bring businesses a market advantage: extra developmental resources. At the same time, taking into consideration that this option is better for companies who are trying to onboard to web3 it’s still not the best strategy.
3. WaaS SDK Implementation
Right now, many companies offer pre-built components for facilitated crypto wallet development and consequently seamless web3 onboarding. These could be SDK or API integrations, wallet-building platforms, etc. Such integrations save a lot of time, and developmental resources. It significantly speeds up the time to market, putting businesses ahead of their competitors.
At the same time, the solutions powered by pre-built SDK, for example, are secured because they come from experienced teams with excellent records. The only thing a company’s IT department is required to do is integrate these pre-built components into a tech stack or front-end application. Such a strategy mitigates the possible risks and facilitates the web3 onboarding processes with best-of-its-class blockchain and encryption practices.
Spatium SDK and Spatium Cloud Integration Options
An example of a robust and easily integrated codebase capable of providing users with a user-friendly and seamless web3 onboarding experience is Wallet SDK and Wallet Cloud delivered by Spatium.
Spatium SDK is powered by MPC encryption protocol. It helps to eliminate UI and UX complexity challenges through keyless web3 onboarding. The private key is divided into several secrets and shared across a user, a company server, and the Spatium server. MPC technology could split a wallet private key into even more parts and spread them across as many participants as requested.
The solution provided by Spatium is self-custodial allowing Spatium or/and the company to safeguard users’ digital assets during the co-signing practices and enforce regulation policies if required. At the same time, whenever a user would like to withdraw the MPC transaction signing mechanism, restore their private key, and turn a wallet into a traditional non-custodial solution, they can easily go for it.
Spatium Cloud is in the majority of cases integrated into the project together with Spatium SDK as it holds the strings of all required web3 crypto wallet integrations and enables its smooth operation. Timewise it could take from one to a couple of months to fully integrate Wallet SDK and Wallet Cloud into your technological stack. Moreover, any IT developer can do it, no specialized blockchain development skills are required.
At the same time, Spatium Wallet Cloud could be purchased alone and integrated into your project. It saves much effort and time as one well-documented Wallet Cloud API may connect a web3 signing protocol, that you probably have already, to the world of web3: access to nodes, access to crypto market data, cloud backup, fiat on-ramps, access to crypto exchanges, dApps, DAO, etc.
Any company that is considering stepping into the roaming waters of web3, has to do substantial research on the various benefits the blockchain ecosystem could bring to their customers. Following the paradigm of a get-rich-quick scheme on the web3 hype is not a sound decision, as it prevents the company from making long-lasting relations with the client, as well as monitoring users’ satisfaction with the product and trying to make it better.
With the right business plan and a reliable partner who provides all the web3 needed infrastructure for crypto wallet development and successful onboarding of multiple users from web2 to web3, businesses could take full advantage of web3 services, at the same time diversifying and amplifying their users’ digital footprints.
Contact us for more information, and let’s start our digital walk into the world of new opportunities together.
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