What is WalletConnect?
WalletConnect is an open-source protocol that allows users to securely connect their self-custody wallets to decentralized applications (dApps). It can be seen as a bridge for communication between your digital wallet and applications on the decentralized web (Web3).
How does it work?
The idea of WalletConnect is to simplify the connection process between the wallet and the decentralized application without the need to expose your private keys. Instead, it creates a secure, end-to-end encrypted 'session' connection.
Here’s how to typically use it:
* In the decentralized application (dApp): You click the "Connect Wallet" button.
* Choosing WalletConnect: You select WalletConnect from the available options.
* QR code or deep link display: A QR code will appear on your computer screen, or a deep link if you are using a mobile phone.
* In your wallet: Open your digital wallet on your phone (like MetaMask or Trust Wallet) and use the QR code scanner to scan the code displayed on the screen.
* Approving the connection: A message will appear in your wallet asking you to approve the connection to the decentralized application. After approval, a secure connection is established.
* Making transactions: After connecting, you can use the decentralized application to make transactions, such as exchanges or signing contracts. Each transaction request will appear in your wallet for you to confirm or reject, ensuring you have full control over your funds.
The main advantages of WalletConnect:
* Security: Your private keys are never sent to the decentralized application. All connections are end-to-end encrypted, reducing the risk of fraud.
* Compatibility: Supports hundreds of wallets and thousands of decentralized applications across multiple blockchain networks, including Ethereum, Solana, Polkadot, Cosmos, and more.
* User experience: It allows users to interact seamlessly with Web3 applications from their mobile devices, providing a smooth experience.
* Decentralization: It operates as an open-source protocol, making it a fundamental part of the Web3 infrastructure.
WalletConnect Token (WCT)
The WalletConnect Network has its own cryptocurrency known as WalletConnect Token (WCT). This token is a governance and utility token for the network.
* Governance: WCT holders can participate in the governance of the protocol and vote on future proposals.
* Utility: It is used to incentivize network participants and may be used in the future to pay network service fees.
* Price and performance: As mentioned earlier, the value of WCT fluctuates frequently. You can check the latest prices on trading platforms like Binance and CoinGecko.
In summary, WalletConnect is an essential tool in the Web3 world, enabling users to connect to decentralized applications securely and easily while maintaining full control over their funds.