The first wave of Web3 applications has been promising, but adoption has been slow. While there are a number of factors contributing to this, one of the biggest barriers is usability. The decentralized nature of Web3 makes it inherently more complex than Web2, and many users find the experience confusing and difficult to navigate. The decentralization that comes with Web3 has forced individuals to become responsible for taking their online security into their own hands. Removing that responsibility from third parties and proxies has resulted in many security solutions catering only to advanced customers, leaving those less tech-savvy behind. To achieve mass adoption, we need to make Web3 as easy to use as Web2, and that means leveraging the power of hardware.
Hardware has a number of advantages over software when it comes to user experience. For one, hardware is tactile; it gives users a physical object to interact with, which can make the experience more intuitive and natural. Hardware can also be customized to suit specific use cases, which can make it easier to use for non-technical users. Finally, hardware can provide an added layer of security, which is crucial for many Web3 applications.
The launch of the iPhone in 2007 was a turning point for the tech industry. It ushered in a new era of mobile computing and set the stage for the explosive growth of Web2 applications. The iPhone was more than just a device; it was a platform that allowed developers to create new and innovative experiences for users. Legendary Steve Jobs recognized that “every once in a while, a revolutionary product comes along that changes everything.” From the printing press to the telegram to the iPhone – these products not only changed entire industries, they changed the world and the way we interact with it. When Steve Jobs introduced the iPhone, he emphasized its innovative user interface that replaced the typical smartphone keyboard with a wide, multi-touch screen. As he predicted, this breakthrough product decision created a new standard for consumer hardware and led to competitive innovations. There would be no Snapchat or WhatsApp without the iPhone.
Today, crypto enthusiasts hope that Web3 would change everything. Its differentiating technology, smart contracts made up of immutable code and data on the blockchain, aims to cut out the need for middlemen in finance to help creators retain ownership and more. Similar to the iPhone’s trajectory, enthusiasts posit that smart contracts innovation will create new and improved industries and behaviors.
However, products built using smart contracts are more analogous to early smartphones than the iPhone. Many Web3 protocols and products simply mimic existing Web2 platforms and features as opposed to creating new experiences for consumers, the equivalent of touch screen on the iPhone. Right now, most dApps are accessed through personal computers, not mobile devices. Cryptocurrencies and blockchains are viewed by some as technological advancements, and yet accessing Web3 has seemingly taken a technological step back. If Web2 users are struggling to keep track of all their passwords, how does Web3 expect people to secure and remember 12 or more random words that make up seed phrases? The reality is that people are accustomed to beautifully designed, frictionless products, and Web3 products today are clunky and hard to use. There will be no widespread adoption until the experience become frictionless.
Solana has announced plans to release a blockchain smartphone called "Solana Saga". According to the company, the smartphone will feature built-in support for Solana's blockchain and provide a seamless user experience for interacting with decentralized applications and crypto assets. Solana Mobile has released details about its native App store, which will be available exclusively on Solana's Saga phone.
In contrast to Apple’s App store and Google’s Play Store, which charge developers a 30% fee on all transactions, the Solana store will be free to use, and leverages Arweave, a decentralized file storage protocol, making it resistant to censorship. The Solana Mobile Stack is also built with security in mind. While phones will be connected and designed with a focus on ease of use, the security keys to the wallet will be segregated to prevent hacking and theft. This effort will start with dApps. With the Solana Mobile Stack launch, the Solana team released a software development kit (SDK) for people interested in creating apps that run on blockchain technology. Think of it like Apple's App Store but for crypto. That could bring a lot of new ideas to the market. If there’s a Web3 distribution channel for mobile crypto developers, it can open up opportunities for them to build experiences outside of the laptop-centric digital asset ecosystem.
Block just detailed plans for its self-custody bitcoin hardware wallet, aiming to bring together the often contradictory goals of convenience and crypto security. Block's goal is to monetize the wallet through a subscription service. The wallet will include three parts: a mobile app, a hardware device and a self-serve recovery tool. The mobile app, which will presumably be run by Block, will be for everyday, smaller transactions since it is easily accessible for people at all times. The hardware wallet has finger print access and will be used for larger transactions where more security is needed. The hardware wallet would presumably hold the user's private key which a user would set only for transactions above a certain size.
The analogy is, if the mobile app is like a checking account, the hardware wallet is like a savings account. The hardware wallet will also be a security tool if someone loses a phone or switches to a new phone.
The Ethereum Phone, built on the Google Pixel 7a platform, features a unique open-source operating system called ethOS. This Ethereum operating system includes built-in tools for handling payments, sending and receiving messages, and integrates with Ethereum Name Services (ENS). What sets it apart is its Ethereum light client, allowing the device to independently validate blocks on the Ethereum network, effectively making it a "light node." The phone also supports Ethereum Virtual Machines (EVM) and Layer 2 scaling networks.
Notably, the Ethereum smartphone was made available for purchase through a unique method: interested buyers had to purchase an ethOS non-fungible token (NFT) to secure their phone. Only 50 devices were available during the pre-order, making them exclusive and sought after. Some ethOS NFTs were being sold for a significant premium on NFT trading platforms like OpenSea.
In comparison, the Ethereum smartphone has seen success in its pre-sale, while the Solana smartphone faced challenges in its initial sales, prompting a price reduction. The competition in the Mobile Web3 space is heating up, with these specialized smartphones aiming to provide easy access to the world of blockchain and decentralized applications.
The Ethereum Phone aims to offer a decentralized mobile experience by providing an open-source Ethereum-native operating system that includes features like decentralized payments, ENS integration, and more. This innovation reflects the growing interest in Web3 technology and the desire to enable users to carry Ethereum in their pockets with a unique and secure mobile device.
Crypto technology has many potential uses, but a complicated, clunky user experience could be holding back mass adoption of this new, unfamiliar technology. Today, we might be on the cusp of a similar revolution the iPhone did to the internet, and the key to unlocking Web3's potential may lie in hardware. It remains to be seen if any of these Web3 hardware companies will become the next iPhone. Ultimately, to achieve mass adoption, Web3 should feel like an iPhone – an intuitive and essential part of life.