Executive Summary

The core foundation and principle of any decentralized cryptocurrency wallet is to empower users with complete control over their digital assets, allowing them to store, manage, and transact these assets independently, without the need for a centralized authority or third party.

This self-sovereignty is at the heart of the “decentralization”, that ensures that users have direct ownership and responsibility over their funds, free from the risks associated with centralized wallets where control is delegated to exchanges.

The first decentralized cryptocurrency wallet, Bitcoin-Qt, was released by Satoshi Nakamoto in 2009 alongside the Bitcoin network. This wallet served as both a wallet and a full node, allowing users to store, send, and receive Bitcoin while also participating in the network by validating transactions and blocks.

However, as the adoption and popularity of blockchain technology grew, the limitations of Bitcoin-Qt and many other early decentralized crypto wallets became apparent. Moreover, the simple functionality of storing, sending, and receiving crypto assets, which was sufficient in the early days, soon became inadequate. Users began demanding more sophisticated features that could support the expanding range of use cases within the decentralized economy.

For example, with the advent of decentralized finance (DeFi), users required wallets that could interact seamlessly with decentralized applications (dApps) on various blockchain networks, cross-chain compatibility, manage multiple types of tokens, and even participate in staking, yield farming, and liquidity provision.

This shift gave rise to a new generation of wallets designed to meet these emerging needs including but not limited to “Electrum” on Bitcoin, “MetaMask” on Ethereum, “Phantom” on Solana, “Yoroi” on Cardano, “Keplr” on Cosmos, “Polkadot.js” on Polkadot, “Temple Wallet” on Tezos, “TronLink” on Tron, and more.

Fast forward to 2024, cryptocurrency is exploding at an unprecedented rate. According to “Triple A Technologies,” approximately 562 million people now own digital currencies, representing around 6.8% of the global population. This marks a significant increase of 34% from the 420 million people who held cryptocurrencies in 2023.

However, a new set of challenges and problems (discussed below) have mushroomed in the Web 3.0 ecosystem which has created a pressing need for more robust and secure decentralized cryptocurrency wallets. As more people enter the market, the demand for user-friendly, secure, and multi-functional wallets has intensified like never before.

For this purpose, we started the development of WallitIQ, a next-generation decentralized cryptocurrency wallet driven by artificial intelligence solutions and machine learning algorithms. WallitIQ is designed to address the evolving needs of the modern cryptocurrency user by combining advanced AI-driven features with a strong foundation in security and decentralization.