# The Wallet-Dapp Dilemma

Source: https://proofinprogress.com/posts/2023-08-26/the-wallet-dapp-dilemma.html

## Summary

The Wallet-Dapp dilemma describes how a dapp's bugs can cause users to churn even when the dapp itself is excellent, because wallets often sit between users and the app. The article says dapp builders spend 1000 hours perfecting their products while many wallets work poorly, citing three causes: wallets that track user activity break with ad blockers enabled, wallets that connect via the internet make interactions slow, and lesser-known wallets are often neither world-class nor actively maintained. It argues that wallet providers, not dapp builders, hold control, and that they have made millions from token swap features. Warpcast is cited as having implemented its own wallet, which the article notes is costly and difficult, leaving many dapp builders unable to follow suit.

## Article

proofinprogress.com

The Wallet-Dapp dilemma is when, despite the exceptional quality of a dapp, a wallet's bugs make dapp users churn.

Dapp builders spend 1000 hours perfecting their products, but many wallets don't work well.

There are a few reasons why wallets don't work: (1) They track user activity, and so many break with ad blockers enabled. (2) Wallets often connect via the internet, making interactions slow. (3) And lots of lesser-known wallets aren't world-class or actively maintained.

Dapps can be built perfectly, but it only takes 1 wallet to screw everything up.

The dilemma is that dapp builders aren't in control; the wallet providers are. And they have made millions from implementing token swap features - not from serving their users.

How much revenue will wallet providers gain from serving decentralized+social? And will it be enough to level up their UX for consumer crypto?

Wallets have held back dapp builders; they're now in our way. And they're the middlemen we aimed to disintermediate.

Warpcast has recognized this early on. "If you can't fight them, join them." And so, they've implemented a wallet themselves.

However, implementing a wallet is difficult, costly, and there are security considerations. Many dapp builders won't be able to afford this independence - they will be forced to focus on growing their daily active users instead.

So, what can be done to dissolve this dilemma?

We and our users deserve world-class experiences. But, wallet providers' incentives seem to be opposed. So what can we do?

published 2023-08-26 by timdaub