The Blockchain’s rapid expansion can be a technical barrier for businesses that want to give their customers the option to own, trade, and track a variety of assets securely and in real time. The popularity of new blockchain protocols and their availability is growing at an alarming rate, not to mention the proliferation of NFTs, cryptocurrencies, and of course, web3 concepts. Even though this portends exciting developments in the future, it can make creating and maintaining cryptocurrency wallets a daunting task.
This makes blockchain-agnostic architecture crucial to the present and future of blockchain-native businesses. Therefore, this quick read covers the importance of building on a blockchain-agnostic infrastructure.
What Does a Blockchain Agnostic Wallet Mean?
A blockchain-agnostic crypto wallet is one that can store and manage digital assets and cryptocurrencies of any kind, regardless of the underlying blockchain technology.
Solutions that are blockchain agnostic can be used with multiple and layer 2 blockchain networks. Since they only need to understand one messaging format, framework, or interface, they can easily integrate with various blockchain networks for conducting business, retrieving data, and modifying blockchain states.
Why are Blockchain-Agnostic Wallets a Necessity?
Numerous blockchain protocols exist, each with its varying entities, despite the fact that they all share the same underlying blockchain technology and standard practices. Blockchains are also notoriously seclusive. The vast majority of blockchains are built in a way that is almost repelling to others. Therefore, trading, buying, and selling digital assets across blockchains can be hampered by this inoperability.
Additionally, not only do blockchains operate on their own channels of communication, but the protocols they employ can serve widely varying functions. So, whether a user wants to buy and sell, trade, buy NFTs, or create a decentralized app, they will need the services of a specific blockchain.
However, as the blockchain ecosystem grows, users don’t want to be locked into using a single blockchain for each activity. Consequently, cryptocurrency wallet providers have no choice but to offer users blockchain-agnostic wallets. So why not create your own wallet? Well, it takes a lot of work.
The Challenges of Developing your Crypto Wallet
To make your wallet agnostic, a full node must be maintained for each blockchain. This can be incredibly costly, time-consuming, and energy-intensive, not to mention fraught with a myriad of technical challenges. In the event of a network outage, it can take weeks for a full node to resynchronize with the blockchain.
Self-managed nodes can also cause additional costs due to bandwidth overuse which will slow down business network traffic, and negatively impact user experience. In addition to operational know-how, nodes need protocol-specific information, solid cybersecurity procedures, and regular maintenance.
Building your own blockchain-agnostic crypto wallet requires a significant investment of time, resources, and expertise. Your launch time will be extended along with your budget. However, using a Wallet-as-a-Service (WaaS) provider like Thresh0ld is the best way to overcome these obstacles and successfully implement a more cost-efficient blockchain-agnostic wallet.
Our Wallet-as-a-Service Infrastructure
Thresh0ld provides its customers with a wallet infrastructure solution that can be used by corporations, institutions, and developers to create digital wallets that are safe, reliable, and scalable.
Businesses can connect to various blockchain platforms by integrating with our WaaS provision rather than building their own nodes. Using Multi-Party Computation (MPC), our WaaS provides users with a highly secure and adaptable digital wallet that can be used with a variety of different authorization protocols.
What Does This Mean for Your Business?
The Multi-Party Computation we use is intrinsically blockchain Agnostic. This means that the addition of new assets or tokens is as simple as setting up a single configuration parameter.
Since it is not tied to a particular blockchain, our service is more resilient to shocks to the blockchain ecosystem, such as the implementation of new technologies or forking. The MPC’s inherent adaptability also means that it can readily accommodate changes in both internal and external environments.
Our MPC-based WaaS is also flexible enough to adapt to the inevitable hardware upgrades, personnel expansions, access approvals, and revocations that accompany most companies’ periods of expansion.
We offer cost-efficient blockchain-agnostic digital asset wallet technology with a priority on security, scalability and reliability.
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About THRESH0LD
THRESH0LD offers a single, simple-to-integrate API that helps digital asset businesses such as crypto exchanges, payment processors and OTC solutions cut tx fees, save time and enhance security. THRESH0LD MPC supports 44 blockchain protocols and a DeFiBridge that enables swaps across thousands of assets.
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