Who needs a wallet anyway? by Itai Turbahn | Devcon SEA

[Music] [Music] should we do it hey everyone how's it going good bad terrible everything's good okay so I'm itai uh co-founder of dynamic and what I want to talk to you guys today about is pretty much who needs a wallet anyway uh just a raise of hands who has heard a wallet talk today before uh before my talk or is this the first talk of wallets anyway no okay so let's start so uh a little bit about me and Shameless plug so I'm the co-founder and CEO of dynamic uh we essentially do uh everything that has to do with email login social login wallet login on the site so when you click login uh if you go to magic Eden today or Doodles or pudgy penguins and you click login that's that's probably powered by Dynamic uh we help you build crypto enabled experiences but uh that's pretty much all I'll kind of shamelessly plug about Dynamic again we're we're powering bunch of these popular apps um that's just context for why I'm talking about this topic which is the topic of wallets or abstraction of those wallets uh so let's get to it so uh at the very basic level the web is moving to a wallet based world right if you open your phone in five years and look at every app on your phone it's likely going to have a wallet component to it it's a very effective way to transfer money to transfer assets to kind of control identity it's a really really cool way in what we're seeing is that we're starting to see apps on your phone not new apps but existing apps have wallet components to them but users don't really care about wallets no one wakes up in the morning and says I really want a wallet right you want these like magical experiences and when they're crypto enabled you kind of need a wallet uh to enable them wallets are not the star of the show it pains me to say as a wallet company but we are not the stars of the show we're pretty much kind of in the background infrastructure and so the way to think about wallets is really um in an analogy of thinking about um crypto is the electric grid as power and everyone wants to kind of hook up to power uh wallets are really outlets in your wall we're in the business of selling Outlets to you and those uh no one kind of cares about Outlets Outlets are not kind of the thing you buy uh for the sake of buying Outlets you buy them because you want to plug in your TV and watch TV or you want to plug in your laptop and kind of play games right so wallets aren't the the main part of the show so why are we putting wallets front and center today why are there so many branded wallets why are we even talking about them and the answer is is we shouldn't right people don't care maybe folks in this room do but but anyone else doesn't really care about wallets right and that's exactly what we're seeing in this market and so what I want to show you is two examples of companies that are abstracting away wallets and deferring that to later on in the process and focusing on building these Magic iCal consumer experiences where wallets don't kind of come up front and center where you don't log in with a wallet first and one example let's see if this video works oh I actually did okay that's uh that's great uh so this is a company called deflow and uh it lets you trade pretty much anything you want you log in with email you enter your passcode and at that point you're done right so we'll see whether this enters it be me for a second oh okay great uh the video actually works so I entered an email logged in and I'm done at this point I have a wallet I can kind of export my private key it's a non-custodial wallet uh I can trade but I really don't need to care about the fact that I have a wallet it's my way of accessing crypto Without Really knowing it's crypto in the same example there's a really cool app out there let's see if this works be with me for a second it actually did called bags who's used bags before love it okay so it's a really cool app uh the idea is again it's a trading app in this case a meme trading app you can buy memes you can kind of chat but you shouldn't really care about the fact that you have a wallet it's just a means to an end right but the challenge with that and the challenge with what I've shown is that we're while we're seeing this daily across everything whether it's deepin or rwa Etc the challenge is that it kind of optimizes for local Maxima right it optimizes for we're going to have hundreds of wallets right we solve the new user onboarding problem but we don't solve the interoperability problem right we optimize um kind of each one of these app optimizes for them it doesn't optimize for kind of a global really nice hey everything is in a single wallet but we can actually optimize and this is the only technical slide apologies but my point here is to say that everything we're seeing in this market everything that we're seeing with hundreds of these wallets be generated across these apps that's totally fine because what will happen is providers like us and others will start thinking about ways to let you aggregate those across different kind of apps right so you start with a local Maxima you start by kind of letting someone accomplish what they want to accomplish and then you start building tools to let them aggregate uh these magical wallets and so I'm actually good on time which is surprising uh but my main takeaway from this talk and I know it's a very quick talk but my main takeaway if you take nothing else away is as you see these embedded wallets as you see these hundreds of apps or thousands of new social apps or defi apps or dpin apps come up and they don't talk about wallets and you're worried about hey I'm going to start having these hundreds of wallets with all my assets distributed across them in my pocket know that it's fine it's a step in the path to kind of these Global decentralization type um standards and not all hope is lost so what we'll see in a couple years is we'll see these kind of apps cons excuse me consolidate into this kind of magical branded wallets that let you kind of connect these small accounts that you generated into bigger ones so the future is not lost uh hopefully everyone comes out of this kind of encouraged that it's a step abstracting away wallets is a step towards kind of a really nice crypto future without jeopardizing onboarding experience in the short term and with that uh if anyone wants to talk to me about it if anyone wants to tell me I have no idea what I'm talking about just here's my telegram sping me you can email me atad dynamic. XYZ and I would love to take questions awesome thank you so much man who's got a question who's got a question for e at this moment we have just room for one question so who's going to be the lucky one going once here please go for it sorry what are the security concerns with this parent child wallet relationship yeah the short answer is a bunch right uh the longer answer is that not all your wallets actually need to be connected over time right we we think about this connection of parent child and kind of a general account and sub account as is required to create the single identity but we're actually creatures of multiple identities right I have my identity at home with my kids I have my identity at work I have my gaming identity I have my social identity and they're different and you might actually not have this one parent child but you might have multiple parents depending on your identity so that's one way to Der risk it uh the second is about controls just just like everything else here right it's about uh uh the beauty of optionality right which is at times it's you can one click on link you can oneclick link you can consolidate your assets you can break them up and so it's about optionality and kind of the ability for you to create multiple identities that kind of lower the security risk but the short answer to your question is just like anything else when you combine multiple wallets into a single place you create some security risk and I think that's all the time we had right how am I doing one quick question do you pass there's one in the thing oh okay oh yeah go for it or do I I'll ask the question do you pass key Integrations okay I'm gonna make a bet on one this question means uh do we offer Pass Key integration the answer is yes we do uh whether that was the question or not I don't care but like the answer I want to give is yes we do we actually offer pasy Integrations uh pasis are in general this like really magical thing because they're a private public key on your phone and they inherit some really cool properties with companies like Google and apple that while we sometimes don't like they kind of have to deal with security to your point at the state actor level and so they really have to think about this stuff at really massive scale and pasis are one of the outputs of that thinking and so yes we specifically offer pasy Integrations I'm sure others within our industry do as well there are really powerful Tool uh to actually get to this both non- custody or self- custody uh as well as create this experience that at least on mobile feels very native uh which is a face ID type experience so yes short answer is yes thank you so much it that was fantastic please give me a great Applause thanks everyone appreciate