In recent years, the internet has evolved to a new paradigm, namely Web3, a future iteration that has captivated the attention of users all over the world. This is, in large part, thanks to the technology's promise of decentralization and granting users ownership over their data, assets, identities, and transactions. Web3 is paving the way for greater financial inclusivity and innovation.
From a monetary standpoint, the Web3 sector is expected to grow substantially in the mid-to-long term, as highlighted by the fact the industry recorded a total of around 18,500 developers per month contributing to various projects, with a recent report even hinting at a surge in developer activity, especially on the Ethereum blockchain.
Similarly, the number daily unique active wallets (dUAW) across the dApp sphere reached 1,967,051 during May 2023, with the same source also noting a 50% increase in the number of active wallets between 2021 to 2022. Lastly, a study suggests a 577% year-over-year increase in smart contracts deployed on Goerli, an Ethereum test network, indicating active dApp development.
Amid this growth, users still find it hard to interact with web3 apps. User Experience (UX) of using decentralized apps (DApps) is one of the top challenges in growing the user base. To solve this, Arcana Network offers developers a UX-focused app-chain with a suite of products for developers and users. The project's growing clout is best demonstrated by the fact that it has been able to onboard 400k+ unique wallets as part of its crypto payments application in less than 2 months as well as gotten 40+ of its partners to use Arcana's extensive product suite.
Simplifying the Onboarding Process
One of the most notable hurdles when it comes to Web3 is the onboarding complexity that comes with decentralized applications (dApps). Users typically need to install wallets, generate a public-private keypair, securely backup the private key, and load the wallet with crypto. To help resolve this bottleneck efficiently, the Arcana team has released an SDK called Arcana Auth, which simplifies the above-said user onboarding process by allowing users to login with familiar email and social accounts. Arcana then creates a wallet for the user that gets embedded into the app,without needing any installation. The wallets are decentralized and non-custodial, so users truly own the private key
Lastly, Arcana Auth seamlessly integrates with existing systems, making it a viable solution across various applications and use-cases. It is particularly useful in gaming, social, and consumer apps, where a fluid login experience is crucial for user adoption and retention. Additionally, in the realm of DeFi 2.5 - which includes the rapidly growing realm of real-world asset tokenization - the offering plays a pivotal role in onboarding non-crypto native investors to gain access to crypto-native investments.
Enabling Easy Crypto Transactions with SendIt
Another key product from Arcana is its SendIt product. SendIt allows users to transfer cryptocurrencies to anyone with just their email address or Twitter ID, alleviating the need for the recipient to have a crypto wallet beforehand.
To elaborate, once a transaction is completed, a shareable link is generated for the receiver. The receiver gets notified either through the shared link or via email and can access their funds by clicking on the link and logging in with their email. Once logged in, they can access the crypto sent to them inside the app. SendIt has significantly lowered the barrier to entry for individuals looking to try digital assets, one of the reasons it has 400k+ users in just 2 months since launch.
Bridging the gap between Web2 and Web3
The core of Arcana that powers its UX benefits is its Distributed Key Generation (DKG) system and app-chain. Unlike traditional Web2 setups that rely on centralized authorities for key management, Arcana's DKG network is decentralized, enabling a distributed protocol for key generation devoid of a singular authority. The keys are made non-custodial by allowed independent validator nodes that run the DKG protocol.
What lies ahead?
With crypto's market cap of over $1 trillion, it stands to reason that projects like Arcana will continue to innovate and make this relatively nascent market more accessible to the masses. One of the capstones of Arcana's journey has been the organic growth of its community and customers. With over 80 enterprise customers, 20 partners, 2000+ independent developers building on Arcana, the project is actively bridging the chasm that currently exists between crypto-natives and traditional internet users.
Helmed by industry veterans like Mayur Relekar, Aravindh Kumar, and Abhishek Chaudhary, Arcana's market standing is bolstered by the fact that it was able to secure significant funding of $2.3 million in a 2021 round led by Republic Crypto and Woodstock Fund, bringing the total fundraise till date to 4.5Mn USD. Looking ahead, it will be interesting to see how the Web3 sector continues to evolve, especially with projects like Arcana leading the charge!
