The world of decentralized finance, also known as DeFi, has changed how we think about money and offers a variety of innovative approaches that have revolutionized traditional financial systems. The blockchain, a distributed ledger that provides an immutable, secure, and transparent record of all transactions, is at the heart of decentralized finance (DeFi).
Although blockchain technology has undeniably contributed significantly to the growth of DeFi, it is only one piece of the puzzle. Developing streamlined and user-friendly decentralized applications (dApps) that can interact with the blockchain effortlessly is crucial for unlocking the full potential of DeFi.
By establishing a secure connection between wallets and dApps, the WalletConnect protocol has made it easier for users to conduct transactions on the blockchain. However, innovation and iteration are vital to facilitate ongoing advancements. Therefore, we introduce to you WalletConnect 2.0. WalletConnect 2.0 represents a further development in this technology, providing DeFi users with a more advanced, secure, user-friendly experience.
What exactly is WalletConnect 2.0, and how does it work?
Key features: Pairings & Sessions Multi-Chain support
WalletConnect 2.0 is an upgraded protocol that uses smart contracts to establish secure connections between wallets and decentralized applications (dApps) based off the Ethereum network. Its predecessor, WalletConnect 1.0, will discontinue operations on June 28, 2023, as development efforts will now focus on WalletConnect 2.0. It's important to note that WalletConnect 2.0 is not backward compatible with 1.0, which means that dApp creators must update their applications to ensure compatibility with 2.0 after the discontinuation date.
All wallets with WalletConnect 2.0 integration will still actively support WalletConnect 1.0 despite the upgrade, including the SafeMoon Wallet. So you won't find any difficulty connecting to your favorite dApps.
One of the key objectives of WalletConnect 2.0 is to extend its functionality across multiple blockchains while establishing more robust operational mechanisms. To fully grasp the benefits of WalletConnect 2.0, it is essential to understand the terminology used in the system.
Pairings refer to the process of pairing a wallet with the WalletConnect system using a QR code or Deep Link. This pairing creates a connection between the wallet and WalletConnect network, allowing the user to interact with the dApp securely.
Sessions build on pairings, with an active pairing required to create a session. Once an active pairing has been established, the user can open multiple sessions across different dApps. Think of pairings as connecting your phone to your wifi and sessions as logging into different apps or services, such as Facebook or Twitter.
Previously, users had to manually scan multiple QR codes to connect their wallet to different dApps. This was cumbersome and time-consuming, especially for individuals who were new to the process. However, with WalletConnect 2.0, an active pairing enables automatic linking of the wallet to dApps with just one click, streamlining the process of conducting transactions on the blockchain. This feature is expected to increase the adoption of DeFi by creating a more user-friendly and efficient experience for interacting with dApps.
WalletConnect 2.0 has an enhanced security feature that employs end-to-end encryption, ensuring secure and confidential transactions while safeguarding user data. Additionally, the protocol has several security measures to prevent phishing attacks and other malicious activities.
To summarize, the WalletConnect 2.0 protocol is a robust and innovative solution that enables users to securely and seamlessly transact on the blockchain. With its user-friendly interface and improved security features, WalletConnect 2.0 offers a reliable method for connecting wallets to dApps and is set to play an important role in the continued advancement of DeFi.
All information in this article was collected and researched via the official WalletConnect 2.0 document.