In the development of the blockchain industry, exchanges and wallets are the most core infrastructure applications in this field. Looking back at the decade-long development of blockchain, after four Bitcoin halving cycles, exchanges and wallets, as the foundation of the industry, have continued to evolve driven by technological iteration and market demand. Today, with the increasingly prominent trend of decentralization, the strategic layout of traditional centralized exchanges has also undergone profound changes. Among these changes, decentralized wallets have gradually become a strategic highland contested by all parties, especially centralized exchanges. The core argument of this article is that decentralized wallets are becoming the standard configuration for centralized exchanges, and behind this trend is the intense competition for user traffic and ecological entry points in the industry.

In the early days of the blockchain industry, centralized exchanges quickly dominated the market by virtue of efficient transaction matching mechanisms, complete user service systems, and strong traffic entry points, becoming the primary choice for users to enter the blockchain world. However, as blockchain technology has matured, the concept of decentralization has taken root, and users’ demands for asset control, transaction privacy, and security have grown increasingly urgent. To adapt to this trend, centralized exchanges began to expand into decentralized fields, with public chain development serving as an early important attempt.

While these failed cases are regrettable, they also reflect the complexity of public chain development. Public chains involve multiple aspects such as underlying technology development, ecological application building, and community governance, with heavy operational models and high technical barriers, making it extremely difficult to stand out in fierce market competition. Despite most attempts failing to achieve desired results, the determination of centralized exchanges to explore decentralized ecosystems is evident.

As the wave of public chain development subsided, decentralized wallets began to emerge and gradually demonstrate their potential as industry entry points. The greatest advantage of decentralized wallets lies in giving users absolute control over their assets — users do not need to entrust private keys to third parties, significantly reducing the risk of asset theft. Meanwhile, with the continuous expansion of blockchain use cases, decentralized wallets can integrate multiple applications such as DeFi (decentralized finance) and NFTs (non-fungible tokens), providing users with one-stop blockchain service experiences. This model of integrating asset storage with diversified applications has made them important interfaces for users to interact with the blockchain world.

From a data perspective, statistics from third-party agencies show that the global number of decentralized wallet users exceeded 120 million in 2023, a year-on-year increase of 47%, with users in DeFi and NFT fields accounting for 38% and 25% respectively. This data intuitively reflects the strong market demand for decentralized wallets and explains why centralized exchanges have increasingly regarded them as strategic priorities.

Facing the rise of decentralized wallets, the market has entered a phase of diverse competition. Centralized exchanges have laid out wallet ecosystems through self-developed solutions or acquisitions, with OKX Wallet serving as an industry benchmark. It has consistently demonstrated a high sensitivity to new technologies, taking the lead in introducing cutting-edge innovations such as Web3.0 and cross-chain technology to provide users with smoother and more secure experiences. In responding to market and user needs, OKX Wallet has precisely grasped industry trends — for example, optimizing processes for crypto investors’ popular token launches and airdrops (commonly known as “farming”), enabling one-click participation and real-time return tracking, which significantly enhances users’ efficiency in engaging with on-chain activities. At the same time, it maintains an open and inclusive attitude toward ecological projects, actively collaborating with various high-quality project parties to support their growth through resource integration and traffic support, forming a positive ecological loop.

Meanwhile, independent wallet ecosystems have also thrived. MetaMask has become a benchmark for browser plugin wallets by leveraging its first-mover advantage and strong community support; before being acquired by Binance, Trust Wallet had already accumulated a large user base through its simple interface and multi-chain support. These independent wallets have established footholds in niche markets through continuous technological innovation and user experience optimization, even forming differentiated competition with centralized exchange wallets.

From the perspective of user retention and traffic

ntry points, it is not just centralized exchanges — any product with the ability to acquire users and direct user contact has a strong inherent demand to build its own decentralized wallet or industry entry point. Take decentralized exchanges Uniswap and 1inch as examples: Uniswap has reduced user churn caused by frequent app switching by integrating wallet functions, allowing users to manage assets and complete transactions directly within the platform; 1inch combines its aggregated trading functions with wallets to provide users with optimal trading routes and asset allocation solutions, enhancing user stickiness while firmly controlling traffic entry points. This trend confirms that in the blockchain ecosystem, controlling wallets means controlling users and traffic — both centralized and decentralized products are building ecological moats through wallets as carriers.

The essence of blockchain lies in open competition, a principle that starkly contrasts with Web2’s “winner-takes-all” logic. Even as MetaMask, Trust Wallet, and others dominate significant market shares, new decentralized wallets (or DEXs) can still carve out opportunities through innovation — this is the unique charm of decentralized ecosystems: there are no eternal monopolies, only continuous innovation.

Deeply cultivating vertical scenarios to precisely address niche demands is an effective breakthrough strategy for new wallets. For example, StepN is specifically designed for the Move-to-Earn model, deeply integrating wallet functions with fitness applications to allow users to earn and manage cryptocurrencies while walking or running. This precise positioning has not only attracted a large number of fitness enthusiasts but also pioneered a new “fitness + blockchain” trajectory. Similarly, wallets designed for NFT collectors can offer 3D collection displays and rarity analysis features to meet the refined management needs of high-end users.

Technological innovation can bring disruptive experiences to wallets. MPC (multi-party computation) wallets store private key shards, eliminating the need for users to memorize lengthy mnemonics, reducing usage barriers, and enhancing security; Account Abstraction (AA) smart contract wallets enable users to manage wallets via biometric authentication and social recovery, completely transforming traditional key management models. These technological innovations not only solve industry pain points but also provide new wallets with core competitive advantages for differentiation.

The community-centric nature of blockchain offers another breakthrough avenue for new wallets. Platforms like Pump.fun have established Meme coin issuance ecosystems where community consensus drives token value, with their accompanying wallets serving as core entry points for users to engage in Meme coin trading and community governance. This model, bound by cultural consensus, can quickly attract like-minded users, forming a strong community cohesion that enables new players to establish a presence even in markets dominated by giants.

In the current market landscape with numerous well-known decentralized wallets, how should centralized exchanges build their own decentralized wallets? OKX Wallet provides a clear methodology: centering on user needs, driven by technological innovation, and supported by ecological cooperation.

OKX Wallet identifies industry pain points through multi-dimensional research and user feedback mechanisms. In terms of security, it employs MPC keyless technology for private key shard storage, reducing single-point leakage risks; in terms of user experience, it simplifies cross-chain transfer processes to support one-stop management of assets across 70+ public chains; and for NFT users, it provides dedicated display and trading interfaces to meet segmented needs.

In technology development, OKX Wallet has not only introduced MPC technology but also launched AA smart contract wallets supporting innovative features like social recovery and batch transactions to lower user thresholds. Additionally, by integrating zero-knowledge proof technology, it enhances transaction efficiency while protecting user privacy, delivering differentiated services.

OKX Wallet actively collaborates with industry-leading projects — for example, integrating with Zerion to provide one-stop DeFi portfolio management; and partnering with renowned NFT platforms to issue limited-edition digital collectibles and attract new users. By establishing developer incentive programs, it encourages third-party application integration, forming a complete “wallet + protocol + application” ecosystem.

As the blockchain industry enters the era of user sovereignty, all participants are answering the same ultimate question: “Why should users choose you?” The answer lies in the subtle details of technological innovation and experience upgrades, which have become the core driving force for industry evolution.

For centralized exchanges, building wallets is no longer an option but a survival necessity. However, simply porting exchange functions to wallets is insufficient; the real challenge lies in breaking free from the “exchange mindset.” Traditional centralized exchanges are accustomed to relying on transaction fees as their core profit model, but in wallet ecosystems, opening API interfaces, integrating third-party applications, and sharing traffic to build “decentralized + open collaboration” ecosystems are key to embracing user sovereignty. For example, OKX Wallet’s use of MPC keyless technology to lower asset management barriers essentially prioritizes user security needs over commercial interests — a shift that deeply embodies the practice of open ecosystems.

With the deep integration of generative AI and blockchain, AI wallets are no longer supplementary features but will become core user interaction interfaces. Imagine users simply voicing their investment preferences, after which AI agents automatically analyze on-chain data, complete optimal route transactions on Uniswap, and stake assets on Compound for yields — this “intelligent butler” service will completely reshape how users interact with blockchain. In the next three years, wallets without AI functions will be as essential as browsers without search bars, failing to meet users’ demands for efficiency and intelligence.

The diversity of blockchain users’ needs ensures that niche opportunities will always exist in the market. Professional investors require advanced tools for multi-chain arbitrage, gamers desire exclusive wallets integrated with GameFi props, and art collectors seek ultimate NFT display and trading experiences. Just as MetaMask entered the developer community through browser plugins and Trust Wallet attracted casual users with simple interfaces, future wallet competition will focus on “precisely meeting vertical needs.” Even among giants, new players can still开辟 (carve out) blue ocean markets by excelling in specific niche scenarios.

Lower usage barriers, higher asset yields, and smarter interaction experiences — these seemingly simple demands drive the continuous self-innovation of the blockchain industry. In the era of user sovereignty, only participants who truly focus on user needs, innovate continuously, and collaborate openly can gain a foothold in this ecological competition, which ultimately embodies the decentralized and democratic spirit of blockchain technology.

1. As CEXs and large-scale applications increasingly build independent decentralized wallets, how can traditional decentralized wallets (e.g., MetaMask, Trust Wallet, TokenPocket) maintain competitiveness through technological iteration or ecological differentiation?
2. How will the technical form of mainstream decentralized wallets evolve in the future? How will technologies such as MPC (Multi-Party Computation), ZK (Zero-Knowledge Proof), or AA (Account Abstraction) reconstruct the interaction threshold for users entering Web3? Can users achieve seamless cross-chain operations through “one-click” smart contracts?
3. In the next bull-bear cycle, beyond traditional sectors like DeFi and NFTs, which emerging segments might explode? As traditional financial institutions and governments accelerate their entry into the industry, what specific layouts will they adopt in the fields of compliant wallets, central bank digital currencies (CBDCs), and blockchain infrastructure?

Disclaimer
This article was written by Bing (https://t.me/BigBrotherBing) and optimized with the assistance of “Doubao AI.” Feel free to contact me for further discussions — I am happy to share my years of experience as a CTO and technical advisor in the crypto industry with the community. This article is for informational purposes only and does not constitute financial, investment, or legal advice. While every effort has been made to ensure the accuracy of the content, no warranty is given against errors or omissions.

In the development of the blockchain industry, exchanges and wallets are the most core infrastructure applications in this field. Looking back at the decade-long development of blockchain, after four Bitcoin halving cycles, exchanges and wallets, as the foundation of the industry, have continued to evolve driven by technological iteration and market demand. Today, with the increasingly prominent trend of decentralization, the strategic layout of traditional centralized exchanges has also undergone profound changes. Among these changes, decentralized wallets have gradually become a strategic highland contested by all parties, especially centralized exchanges. The core argument of this article is that decentralized wallets are becoming the standard configuration for centralized exchanges, and behind this trend is the intense competition for user traffic and ecological entry points in the industry.

In the early days of the blockchain industry, centralized exchanges quickly dominated the market by virtue of efficient transaction matching mechanisms, complete user service systems, and strong traffic entry points, becoming the primary choice for users to enter the blockchain world. However, as blockchain technology has matured, the concept of decentralization has taken root, and users’ demands for asset control, transaction privacy, and security have grown increasingly urgent. To adapt to this trend, centralized exchanges began to expand into decentralized fields, with public chain development serving as an early important attempt.

While these failed cases are regrettable, they also reflect the complexity of public chain development. Public chains involve multiple aspects such as underlying technology development, ecological application building, and community governance, with heavy operational models and high technical barriers, making it extremely difficult to stand out in fierce market competition. Despite most attempts failing to achieve desired results, the determination of centralized exchanges to explore decentralized ecosystems is evident.

As the wave of public chain development subsided, decentralized wallets began to emerge and gradually demonstrate their potential as industry entry points. The greatest advantage of decentralized wallets lies in giving users absolute control over their assets — users do not need to entrust private keys to third parties, significantly reducing the risk of asset theft. Meanwhile, with the continuous expansion of blockchain use cases, decentralized wallets can integrate multiple applications such as DeFi (decentralized finance) and NFTs (non-fungible tokens), providing users with one-stop blockchain service experiences. This model of integrating asset storage with diversified applications has made them important interfaces for users to interact with the blockchain world.

From a data perspective, statistics from third-party agencies show that the global number of decentralized wallet users exceeded 120 million in 2023, a year-on-year increase of 47%, with users in DeFi and NFT fields accounting for 38% and 25% respectively. This data intuitively reflects the strong market demand for decentralized wallets and explains why centralized exchanges have increasingly regarded them as strategic priorities.

Facing the rise of decentralized wallets, the market has entered a phase of diverse competition. Centralized exchanges have laid out wallet ecosystems through self-developed solutions or acquisitions, with OKX Wallet serving as an industry benchmark. It has consistently demonstrated a high sensitivity to new technologies, taking the lead in introducing cutting-edge innovations such as Web3.0 and cross-chain technology to provide users with smoother and more secure experiences. In responding to market and user needs, OKX Wallet has precisely grasped industry trends — for example, optimizing processes for crypto investors’ popular token launches and airdrops (commonly known as “farming”), enabling one-click participation and real-time return tracking, which significantly enhances users’ efficiency in engaging with on-chain activities. At the same time, it maintains an open and inclusive attitude toward ecological projects, actively collaborating with various high-quality project parties to support their growth through resource integration and traffic support, forming a positive ecological loop.

Meanwhile, independent wallet ecosystems have also thrived. MetaMask has become a benchmark for browser plugin wallets by leveraging its first-mover advantage and strong community support; before being acquired by Binance, Trust Wallet had already accumulated a large user base through its simple interface and multi-chain support. These independent wallets have established footholds in niche markets through continuous technological innovation and user experience optimization, even forming differentiated competition with centralized exchange wallets.

From the perspective of user retention and traffic

ntry points, it is not just centralized exchanges — any product with the ability to acquire users and direct user contact has a strong inherent demand to build its own decentralized wallet or industry entry point. Take decentralized exchanges Uniswap and 1inch as examples: Uniswap has reduced user churn caused by frequent app switching by integrating wallet functions, allowing users to manage assets and complete transactions directly within the platform; 1inch combines its aggregated trading functions with wallets to provide users with optimal trading routes and asset allocation solutions, enhancing user stickiness while firmly controlling traffic entry points. This trend confirms that in the blockchain ecosystem, controlling wallets means controlling users and traffic — both centralized and decentralized products are building ecological moats through wallets as carriers.

The essence of blockchain lies in open competition, a principle that starkly contrasts with Web2’s “winner-takes-all” logic. Even as MetaMask, Trust Wallet, and others dominate significant market shares, new decentralized wallets (or DEXs) can still carve out opportunities through innovation — this is the unique charm of decentralized ecosystems: there are no eternal monopolies, only continuous innovation.

Deeply cultivating vertical scenarios to precisely address niche demands is an effective breakthrough strategy for new wallets. For example, StepN is specifically designed for the Move-to-Earn model, deeply integrating wallet functions with fitness applications to allow users to earn and manage cryptocurrencies while walking or running. This precise positioning has not only attracted a large number of fitness enthusiasts but also pioneered a new “fitness + blockchain” trajectory. Similarly, wallets designed for NFT collectors can offer 3D collection displays and rarity analysis features to meet the refined management needs of high-end users.

Technological innovation can bring disruptive experiences to wallets. MPC (multi-party computation) wallets store private key shards, eliminating the need for users to memorize lengthy mnemonics, reducing usage barriers, and enhancing security; Account Abstraction (AA) smart contract wallets enable users to manage wallets via biometric authentication and social recovery, completely transforming traditional key management models. These technological innovations not only solve industry pain points but also provide new wallets with core competitive advantages for differentiation.

The community-centric nature of blockchain offers another breakthrough avenue for new wallets. Platforms like Pump.fun have established Meme coin issuance ecosystems where community consensus drives token value, with their accompanying wallets serving as core entry points for users to engage in Meme coin trading and community governance. This model, bound by cultural consensus, can quickly attract like-minded users, forming a strong community cohesion that enables new players to establish a presence even in markets dominated by giants.

In the current market landscape with numerous well-known decentralized wallets, how should centralized exchanges build their own decentralized wallets? OKX Wallet provides a clear methodology: centering on user needs, driven by technological innovation, and supported by ecological cooperation.

OKX Wallet identifies industry pain points through multi-dimensional research and user feedback mechanisms. In terms of security, it employs MPC keyless technology for private key shard storage, reducing single-point leakage risks; in terms of user experience, it simplifies cross-chain transfer processes to support one-stop management of assets across 70+ public chains; and for NFT users, it provides dedicated display and trading interfaces to meet segmented needs.

In technology development, OKX Wallet has not only introduced MPC technology but also launched AA smart contract wallets supporting innovative features like social recovery and batch transactions to lower user thresholds. Additionally, by integrating zero-knowledge proof technology, it enhances transaction efficiency while protecting user privacy, delivering differentiated services.

OKX Wallet actively collaborates with industry-leading projects — for example, integrating with Zerion to provide one-stop DeFi portfolio management; and partnering with renowned NFT platforms to issue limited-edition digital collectibles and attract new users. By establishing developer incentive programs, it encourages third-party application integration, forming a complete “wallet + protocol + application” ecosystem.

As the blockchain industry enters the era of user sovereignty, all participants are answering the same ultimate question: “Why should users choose you?” The answer lies in the subtle details of technological innovation and experience upgrades, which have become the core driving force for industry evolution.

For centralized exchanges, building wallets is no longer an option but a survival necessity. However, simply porting exchange functions to wallets is insufficient; the real challenge lies in breaking free from the “exchange mindset.” Traditional centralized exchanges are accustomed to relying on transaction fees as their core profit model, but in wallet ecosystems, opening API interfaces, integrating third-party applications, and sharing traffic to build “decentralized + open collaboration” ecosystems are key to embracing user sovereignty. For example, OKX Wallet’s use of MPC keyless technology to lower asset management barriers essentially prioritizes user security needs over commercial interests — a shift that deeply embodies the practice of open ecosystems.

With the deep integration of generative AI and blockchain, AI wallets are no longer supplementary features but will become core user interaction interfaces. Imagine users simply voicing their investment preferences, after which AI agents automatically analyze on-chain data, complete optimal route transactions on Uniswap, and stake assets on Compound for yields — this “intelligent butler” service will completely reshape how users interact with blockchain. In the next three years, wallets without AI functions will be as essential as browsers without search bars, failing to meet users’ demands for efficiency and intelligence.

The diversity of blockchain users’ needs ensures that niche opportunities will always exist in the market. Professional investors require advanced tools for multi-chain arbitrage, gamers desire exclusive wallets integrated with GameFi props, and art collectors seek ultimate NFT display and trading experiences. Just as MetaMask entered the developer community through browser plugins and Trust Wallet attracted casual users with simple interfaces, future wallet competition will focus on “precisely meeting vertical needs.” Even among giants, new players can still开辟 (carve out) blue ocean markets by excelling in specific niche scenarios.

Lower usage barriers, higher asset yields, and smarter interaction experiences — these seemingly simple demands drive the continuous self-innovation of the blockchain industry. In the era of user sovereignty, only participants who truly focus on user needs, innovate continuously, and collaborate openly can gain a foothold in this ecological competition, which ultimately embodies the decentralized and democratic spirit of blockchain technology.

1. As CEXs and large-scale applications increasingly build independent decentralized wallets, how can traditional decentralized wallets (e.g., MetaMask, Trust Wallet, TokenPocket) maintain competitiveness through technological iteration or ecological differentiation?
2. How will the technical form of mainstream decentralized wallets evolve in the future? How will technologies such as MPC (Multi-Party Computation), ZK (Zero-Knowledge Proof), or AA (Account Abstraction) reconstruct the interaction threshold for users entering Web3? Can users achieve seamless cross-chain operations through “one-click” smart contracts?
3. In the next bull-bear cycle, beyond traditional sectors like DeFi and NFTs, which emerging segments might explode? As traditional financial institutions and governments accelerate their entry into the industry, what specific layouts will they adopt in the fields of compliant wallets, central bank digital currencies (CBDCs), and blockchain infrastructure?

Disclaimer
This article was written by Bing (https://t.me/BigBrotherBing) and optimized with the assistance of “Doubao AI.” Feel free to contact me for further discussions — I am happy to share my years of experience as a CTO and technical advisor in the crypto industry with the community. This article is for informational purposes only and does not constitute financial, investment, or legal advice. While every effort has been made to ensure the accuracy of the content, no warranty is given against errors or omissions.