We use WalletConnect daily to connect to decentralized applications (dApps), but what exactly happens 'under the hood'? Understanding the technical mechanisms of this protocol helps not only deepen your knowledge but also enhance your security.

How does WalletConnect work?

The WalletConnect protocol is not a blockchain. It is a messaging protocol that creates an encrypted connection between two applications: your wallet and the dApp.

Session Proposal: When you click 'Connect Wallet' and select WalletConnect, the dApp generates a connection request. This request contains the information needed for the session, such as the network identifier (Chain ID).

QR Code & Deep Link: The protocol converts this information into a QR code or deep link for mobile devices. This is an encrypted data packet that contains all the necessary details for establishing a connection.

Connecting: You scan the QR code with your wallet. Your wallet reads the encrypted data, which contains the session key, dApp URL, and other parameters. The wallet establishes an encrypted P2P connection with the dApp using this key.

User Approval: The wallet requests your permission to connect to the dApp. At this stage, you see which site you are connecting to and what permissions you are granting. This is the most important step! Always check the URL of the site in the wallet.

Interaction & Signature: After confirmation, the dApp can send requests for signing transactions or messages. These requests are transmitted through an encrypted connection directly to your wallet. All signatures are performed locally on your device, and private keys never leave its boundaries.

WalletConnect v1 vs v2: What has changed?

The protocol has undergone significant evolution, transitioning from the first version (v1) to the modern second version (v2).

v1: Core protocol. Used one-time sessions. If the connection was interrupted (e.g., due to signal loss), it needed to be re-established.

v2: Major update. Key improvements:

Multichain support: Allows simultaneous connections to multiple blockchains (Ethereum, BNB Chain, Polygon, etc.) within a single session. This significantly simplifies interactions with cross-chain protocols.

Resilient sessions: Connections are maintained even after the device is turned off or the network changes, and there is no need to restore it.

Decentralized infrastructure: v2 uses a decentralized relay network for messaging, making the protocol more resilient and secure by eliminating a single point of failure.

Practical security tips

Always check the URL: This is the most important rule. Phishing sites can imitate dApps to trick you into signing a malicious transaction.

Be cautious with requests: Your wallet always shows what you are about to sign: permission to access a specific token, a transaction to send funds, or just a signature for login. Do not confirm transactions if you do not understand their purpose.

Disconnect sessions: After finishing work with the dApp, disconnect the WalletConnect session in your wallet settings. This minimizes risks, although v2 connections are quite resilient.

WalletConnect is not just a convenient tool, but a critically important element of modern Web3 infrastructure. By understanding how it works, you can explore the limitless world of decentralized technologies more confidently and securely.