# Use case - Web3 cold wallet

By [Dvine Nebor](https://paragraph.com/@dvine-nebor) · 2025-05-09

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The self-custody web3 pioneer I’ll call “**SafeKey”** has shipped more than **7 million tamper-proof wallets**—none ever hacked—securing roughly **20 % of all crypto value** in circulation. A fresh **US $108 million Series-C extension** is funding both a premium touchscreen device and a service layer inside its companion app. Meanwhile, hardware-wallet demand is exploding toward a projected **US $54.6 billion market by 2032 (41 % CAGR)**. Yet 2023’s cloud-backup controversy reminded the world that if users even _suspect_ key custody is compromised, trust evaporates overnight. The proposal below—”**AllKey”**—upgrades every “SafeKey” wallet with Passkey (FIDO 2 / WebAuthn) support so one device can sign both Web3 transactions _and_ Web2 log-ins, turning cold storage into an everyday security companion.

Strategic Framing
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**Market tension.** Crypto hackers siphoned **US $2.2 billion** in 2024 alone, keeping self-custody top of mind. Parallel to that, Big Tech and the **U.K. government are rolling out passkeys** to replace passwords altogether.Add looming **EU MiCA rules** that tighten control over private-key custody and the stage is set for a single, regulation-proof hardware root-of-trust.[Bitcoin Magazine](https://bitcoinmagazine.com/politics/is-bitcoin-self-custody-under-threat-in-europe)

**North-star.** _“One pocket-sized key to secure digital assets_ **_and_** _digital identity—no intermediaries, no secrets in the cloud.”_

Personas
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**Sam, the “DIY self-custodian,”** is 29, lives on DeFi airdrops and perpetual-futures yields, and already owns one of SafeKey’s entry-level wallets. Sam’s daily headache is juggling half-a-dozen 2-FA apps and browser extensions; every new phishing headline reminds him that a single slip could drain his stack. What Sam really wants is one ultra-trusted device that will sign a Uniswap swap _and_ unlock Gmail while keeping every private key offline.

**Carla, the “risk-aware CFO,”** is 42 and runs a mid-sized fund’s crypto treasury. Her auditors demand SOC-grade hardware, provable key custody and multi-factor log-ins for back-office portals. Carla loves SafeKey’s secure element but dreads the hardware sprawl—one dongle for Web3, another for SSO, a third for USB-HSM backups. She needs a single root-of-trust that ticks regulatory boxes and simplifies her team’s day-to-day ops.

Jobs-To-Be-Done
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> **When** I see headline hacks and password breaches, **I want** a _single_ ultra-secure key that signs my trades _and_ passkey log-ins **so I can** control both my wealth and my identity without juggling devices.

_Functional result_: offline signing for Web3 & Web2._Emotional result_: peace-of-mind versus exchange or cloud compromise._Social result_: signal “security savvy” to peers and regulators.

Customer Journey · Triggers · KPIs & OKRs
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_It starts with fear._ A Chainalysis report lands in Sam’s feed: **US $2.2 billion** was stolen in crypto hacks during 2024 alone. Sam thinks, “Cold storage isn’t optional any more.” [Chainalysis](https://www.chainalysis.com/blog/crypto-hacking-stolen-funds-2025/?utm_source=chatgpt.com)

_Curiosity follows._ A Reddit thread explains that the latest SafeKey firmware can double as a **passkey**, letting one wallet act as both Web3 signer and Web2 FIDO2 token. Sam’s intrigue converts into a click on SafeKey’s landing page.  
**KPI :** Marketing’s first **KPI** here is _daily unique visits to the security pages_  
**OKR :** The growth team has an OKR to **double that traffic from 8 k to 16 k within 90 days**.

_Interest peaks._ He joins the wait-list.  
**KPI :** The CRM team’s KPI is _raw sign-ups_;  
**OKR :** product marketing owns the OKR to **capture 30 000 qualified e-mails in four weeks**.

_Due diligence sets in._ Sam learns that SafeKey’s controversial 2023 cloud-backup scheme is now strictly opt-in and can be replaced by a Shamir 2-of-3 split kept entirely offline. [Reddit](https://www.reddit.com/r/ledgerwallet/comments/18jsjjc/ledger_be_honest_about_the_horrid_2023_events/?utm_source=chatgpt.com) Confidence restored, he pre-orders the US $39 NFC/Bluetooth clip.  
**KPI** : The commerce squad watches the KPI _wait-list-to-pre-order conversion rate_ and chases  
**OKR** : **≥ 8 % conversion**.

_First-time use._ On launch day, Sam updates firmware, taps “Create AllKey,” scans a QR code and registers his first Google passkey. Microsoft’s own telemetry shows passkey log-ins average **8 seconds versus 69 seconds** for passwords with MFA—Sam feels that speed difference instantly.  
**KPI** : The activation KPI is _median setup time_;  
**OKR** : UX owns the OKR of **80 % of users finishing in under eight minutes**.

_Habit forms._ Weekly staking-reward pings inside the SafeHub app keep Sam coming back.  
**KPI :** Retention analysts track the _WAU/MAU ratio,_  
**OKR :** the lifecycle team commits to **lifting that ratio from 0.45 to 0.60 inside 90 days**.

_Advocacy kicks in._ After a month of phishing-proof log-ins and smooth swaps, Sam shares his referral link to friends for a small BTC-sat reward.  
**KPI :** Growth engineering measures _K-factor_  
**OKR** : **0.25 invites per daily active user by day 120**.

Solution & User Experience
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1.  **What** – Free firmware adds FIDO 2/WebAuthn; optional “**AllKey Clip”** (US $39) adds NFC/Bluetooth for phones & laptops.
    
2.  **How** –
    
    1.  Open SafeHub → **Update Firmware**.
        
    2.  Tap **Create AllKey** → confirm on device.
        
    3.  Pair phone via QR → register first passkey (e.g., Gmail).
        
    4.  Swap tokens or stake—same confirmation tap.
        
3.  **Why it’s safe** – Keys never leave the Secure Element; Shamir 2-of-3 backup is opt-in; zero forced cloud escrow.
    
4.  **Business model** – Hardware margin on Clip; **Pro** subscription (US $4.99/mo) for encrypted passkey metadata backup and priority support.
    
5.  **User outcome** – Six-times faster log-ins versus passwords and a single gesture for every critical transaction.
    

Step-by-Step Delivery & Team Collaboration
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**Phase 1 – Discovery (W 0-4)**

*   Product, UX and Security interview 20 users; Research sizes market using 41 % hardware-wallet CAGR.
    

**Phase 2 – Build (W 5-16)**

*   Firmware Eng codes FIDO 2 stack; App Eng builds UI; Security runs threat modelling.
    
*   Weekly “triad” (PM + Tech Lead + Designer) resolves scope blockers in shared Jira.
    

**Phase 3 – Beta (W 17-26)**

*   Compliance vets MiCA alignment; Support scripts new recovery flows; Data tags events.
    
*   Closed beta to 10 k power users; NPS surveys drive polish.
    

**Phase 4 – Launch (W 27-40)**

*   Marketing orchestrates creator demos and blog series; Growth Eng deploys referral code; Ops secures chip supply with dual vendors amid 2025 semiconductor volatility.
    
*   Single OKR dashboard in Looker; Slack channel **#allkey-launch** with live decision log; PM is DRI for every risk.
    

Go-to-Market Plan
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1.  **Teach first, sell later** – Five-part blog + infographic on how passkeys stop phishing; target CTR > 4 %.
    
2.  **Creator demos** – Three tech YouTubers publish hands-on videos; goal 500 k views in 72 h.
    
3.  **Wait-list nurture** – Four-email drip (threat stats → UX GIF → discount → countdown); open rate > 45 %, preorder ≥ 8 %.
    
4.  **Launch bundles** – Clip + new touchscreen wallet at 10 % off (5 k units); sell-through < 10 days.
    
5.  **Post-launch retention** – In-app tips to add more passkeys; weekly staking-reward pings; drive WAU/MAU to 0.60 by day 90.
    
6.  **Referral flywheel** – Double-sided BTC-sat reward and shareable security badge; reach K-factor 0.25 within three months.
    

Risks & Mitigations
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*   **Passkey standard changes** – Mitigate with over-the-air firmware updates and modular FIDO2 library.
    
*   **Regulatory shifts (MiCA, UK Online Safety Act)** – Maintain legal watchlist; bake compliance gates into CI pipeline.
    
*   **Supply-chain chip shortages** – Dual-source secure elements, hold six-month stock buffer.
    
*   **User misunderstanding of optional backup** – Clear copy, forced “I understand” tick box, video explainer.
    
*   **Phishing during pre-order** – DNSSEC, DMARC on domains; public advisory via socials.
    

With AllKey, SafeKey can convert occasional cold-storage devices into daily guardians of both wealth and identity—hitting growth, revenue and trust OKRs while keeping sovereignty in the user’s hands.

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*Originally published on [Dvine Nebor](https://paragraph.com/@dvine-nebor/use-case-web3-cold-wallet)*