WalletConnect for securing transactions using crypto wallets and decentralized applications (DApps). People who want to add extra layers of security to their transactions can benefit from using WalletConnect-compatible wallets for crypto storage. This guide will touch on WalletConnect, DApps, crypto wallets and some of the best WalletConnect-compatible wallets for 2022.

What Is WalletConnect?

WalletConnect is an open-source protocol, founded in 2018, which uses deep links or QR codes to connect wallets and decentralized applications that are compatible with it. 

Although WalletConnect is often mislabeled as an application, it isn’t one — contrary to popular belief. Rather, it’s a protocol which uses a shared key between peers to create an encrypted connection for devices, decentralized applications or wallets. 

As of mid-2022, the protocol is compatible with at least 100 crypto wallets, and even more applications. Some of the most common WalletConnect-compatible wallets include Trust Wallet, MetaMask and Rainbow Wallet. 

One key purpose for using the protocol with WalletConnect-compatible wallets is creating a more reliable connection. The protocol helps solve past accessibility issues, which often required people to install multiple browser extensions, or create new crypto wallets and transfer funds to access certain DApps. 

Three years after WalletConnect was founded, the entity launched its v2.0 protocol update in 2021. Key changes helped clear up any confusion users may have had about blockchain preferences and other concerns. WalletConnect v2.0 features a chain-agnostic interface, as well as multi-chain support. In addition, the update includes pairing and session separation, improved session management, decentralized message relay and JSON-RPC permissions.

What Is a Wallet Connect?

A Wallet Connect is an application that people use to access and store crypto assets they own. Similar to a tangible wallet that holds cards and cash, a crypto wallet is a digital variant that keeps passkeys for different assets. These passkeys are necessary for making transactions. In the past, crypto transactions required manually entering long keys. However, today crypto wallet applications handle the complexities of crypto transactions. 

Crypto wallets also have public keys, which are addresses that people can see to ensure that they’re making a transaction with the correct party. However, only the holders of crypto wallets can see their own private keys for transactions.

How Does Wallet Connect Work?

Wallet Connect makes it possible to enhance security for transactions without revealing personal information of any parties involved. In comparison with browser extensions, this protocol is much more private, and is also a lot safer. 

To connect crypto wallets or DApps, WalletConnect uses its Mobile Linking technology. This feature lets DApps and WalletConnect-compatible wallets interact. There are several steps involved, so the actual process the protocol uses can vary slightly between web and mobile browsers.

To provide a demonstration of the mechanics of WalletConnect, consider a connection between a DApp on a website browser and a crypto wallet on a smartphone. 

The first step is accessing the DApp through its official website and finding the option to connect a crypto wallet. Next, you can then select the option to connect a crypto wallet, and choose WalletConnect as the facilitator. After this, a QR code will be generated. You can then go into the crypto wallet app that’s being connected and access the settings menu. From that menu, choose WalletConnect to establish a new connection.

Then, scan the browser's QR code. After that, the protocol will redirect you to the DApp and provide an option to connect or link the digital wallet that has been accessed. You can then start a transaction. In order to do so, click on the option you wish to trade, and select the number of tokens you want to swap. For example, if you want to swap ETH for BNB, simply enter the number of ETH to swap for BNB. 

The final step is verifying the swap. When a price changes in the middle of a transaction, there’s a prompt that will alert you and require you to click Accept. Do note that transactions can take several seconds to complete.

Once the transaction is successfully completed, disconnect WalletConnect from the chosen crypto wallet. The Disconnect option is under the wallet icon on the top right. If you don’t use a website browser, and are instead using a smartphone for a transaction, the process may be shortened, and may not include scanning the QR code.

Best WalletConnect-Compatible Wallets for Crypto Storage

According to WalletConnect's website, the protocol is compatible with over 100 wallets. As the world of crypto transactions continues to grow, that number is likely to increase as more wallet developers enter the space. 

Although most crypto wallet apps are free to download and use, there are other fees that are included when making transactions. Crypto wallet users may have to pay service fees, platform fees, and blockchain gas fees based on the market rate. 

Wallet creators don’t receive these gas fees, and have no control over their fluctuation. However, wallets typically allow users to set a variable or tiered transaction fee, which usually corresponds with the speed needed for a transaction. For example, setting a higher fee means that there will be a faster processing speed. On the contrary, people may set lower fees for non-urgent transactions. Of course, processing fees may also depend on the different third-party processors for wallet providers who use third parties. 

If you’re looking to create a new wallet, here are the best WalletConnect-compatible wallets you can use.