What Is WalletConnect?
WalletConnect is an open-source protocol that makes it easy for crypto wallets to connect with decentralized apps (DApps). Instead of relying on browser extensions or copy-pasting wallet addresses, WalletConnect lets you link your wallet to a DApp with a quick QR code scan or deep link. WalletConnect works across many blockchains, and aims to make Web3 more user-friendly and secure.
Originally created to address fragmented and vulnerable DApp-wallet interactions, WalletConnect has grown into a protocol and a network that supports millions of users and thousands of applications.
How WalletConnect Works
At its foundation, WalletConnect acts as a communication layer that enables wallet applications to interact with DApps without exposing sensitive information, such as private keys.
The protocol supports encrypted messaging through a session established by scanning a QR code or clicking a deep link. Once connected, users can approve or reject transactions directly from their wallets, which remain in their full control throughout the session.
WalletConnect supports multiple blockchain networks, including Ethereum, Solana, Cosmos, Polkadot, and Bitcoin.
WalletConnect is built on three key pieces:
• Network: This is the system of nodes that pass messages between your wallet and the app you're using. These nodes are run by different groups to keep things decentralized.
• SDKs: Developers use WalletConnect SDKs to add the connection feature to their wallets and DApps. The SDKs handle all the technical stuff behind the scenes.
• Standards: WalletConnect uses standard rules for how messages are sent and received, which makes it easier for apps and wallets to work together smoothly.
The WCT Token
WalletConnect has its own token called WCT. It is an ERC-20 token with a total supply of 1 billion tokens. WCT was launched on the Optimism network and is used for multiple purposes within the WalletConnect ecosystem:
• Governance: WCT holders can help decide how the network evolves, from protocol upgrades to fee structures.
• Staking: Users can stake WCT tokens to help secure the network and earn rewards. Staking durations range from one week to two years, with incentives increasing with the length of the commitment.
• Performance-based rewards: Node operators and wallet providers are rewarded in WCT based on metrics such as uptime, latency, and the number of successful connections they facilitate.
• Future fees: While WalletConnect doesn’t charge fees yet, WCT might be used for transaction fees later on if the community votes for it.
WCT is an ERC-20 token with a total supply of 1 billion tokens.