WalletConnect is the infrastructure protocol of the #Web3 connection layer, designed as a secure bridge between user wallets and DApps. Its technology allows users to achieve seamless docking between wallets and DApps through QR code scanning and other methods without exposing private keys. Currently, it supports over 600 wallets and connects more than 61,000 DApps, serving over 45 million users worldwide, making it the absolute leader in the field with a monopolistic position.
🔗 #WalletConnect Working Principle:
#WalletConnect operates through a relay server infrastructure, which supports real-time communication between wallets and DApps:
1️⃣ QR code connection: When users use DApps, they simply scan the QR code on the page with their wallets, initiating the connection through custom integration tools like Reown AppKit integrated within the application.
2️⃣ Quick connection establishment: The QR code contains necessary information, and the wallet can complete the connection within seconds after recognition.
3️⃣ Secure communication: WalletConnect encrypts the information transmitted between wallets and DApps, protecting user privacy and asset security.
4️⃣ Cross-chain interoperability: Not limited to a single chain, supports multiple blockchains such as ETH, Solana, allowing users to avoid installing multiple wallets for different chains.
Its role is like 'Web3 Bluetooth', helping users easily and securely operate seamlessly across different blockchains.
🎯 Core advantages and data 📊
1️⃣ Significant network effect
• Monthly active wallet users exceed 5 million, with an annual growth rate of 27%
• Cumulative connection numbers reached 275 million, with a projected growth of 4.4 times in 2024 compared to 2023.
• Supports 600+ wallets and over 61,000 applications, becoming the connection standard for DeFi and NFT ecosystems
2️⃣ Technical moat
• Uses end-to-end encrypted communication and QR code scanning mechanisms to achieve on-chain interactions without leaking private keys.
• v2 protocol upgrade significantly improves communication efficiency and introduces a node network (such as Consensys, Ledger, etc.) to enhance decentralization and security.
3️⃣ Addressing industry pain points
• Unified connection SDK reduces development thresholds, 'one integration, compatible across all chains'
• Effectively addresses the fragmented user experience of Web3 and the complexity of wallet support.
📝 $WCT token economic model and value capture mechanism
1️⃣ Distribution structure
• Initial total supply: 1 billion
• Airdrop: 18.5%
• Team lock-up: 18.5% (4 years linear release)
• Ecological incentives (reward pool): 17.5%
• Foundation: 27%
• Early supporters: 11.5%
• Core development: 7%
Currently, over 106.5 million $WCT have been staked, with more than 305,000 holding addresses, reflecting strong network effects and community participation.
2️⃣ Token value capture
• Fee payment: DApps need to pay network connection service fees in $WCT based on the number of monthly active users.
• Staking rewards: Users can stake $WCT to earn rewards, while node operators receive incentives based on service quality.
• Community governance: Token holders can participate in voting on proposals for protocol upgrades, fee models, and more.
• Decentralized incentives: The staking lock-up mechanism ensures network security and promotes a positive feedback loop.
🔔 Future development direction
1️⃣ Function expansion
• Web3Inbox messaging system: Supports decentralized notifications between on-chain users and DApps
• Cross-chain communication support: such as Cosmos IBC, Polkadot XCM, making WalletConnect a universal connection protocol
• On-chain compliance and identity management: On-chain compliance interaction verification combined with zero-knowledge proof (ZKP)
2️⃣ Network governance and community-driven
• Decentralized node network gradually opens governance rights, building permissionless connection infrastructure
• Attract more developers to integrate WalletConnect SDK, expanding the application scenarios and payment needs of $WCT.
• Provide multi-party incentive mechanisms for operators, stakers, and developers to establish strong community binding power
🧐 Investment perspective observation
#WalletConnect is not just a tool protocol; it is the 'traffic entrance' for #Web3 user connections. By empowering its connection network through $WCT, the protocol not only gains continuous economic support but also opens new avenues for community governance and long-term development.
Compared to some 'airdrop projects' that rely solely on marketing, WalletConnect's real usage data, extensive integration, and gradual decentralization of its technical iteration path create a strong moat. Especially in the context of 'interconnectivity of thousands of chains' becoming a trend, WalletConnect's infrastructure position in cross-chain communication and user interaction experience will further solidify its value. Currently, $WCT has been launched on Binance Launchpool, with low participation thresholds and long-term potential, making it a rare token project with actual business models and implementation capabilities in the #Web3 ecosystem.
Summary: #WalletConnect and its token $WCT are at a critical juncture of upgrading from a 'tool protocol' to a 'protocol economy'. In the future, as Web3 applications continue to explode, its position as a connection layer will remain solid, and $WCT, as the underlying infrastructure of various wallets, possesses high strategic value and investment prospects. The current Binance Launchpool new token activity is also not to be missed, enjoying the first wave of opportunities to benefit from ecological dividends. 🧐
