Opinion: Eowyn Chen, Trust Wallet CEO
The world is changing. Fundamental elements that are often taken for granted in the physical world are becoming unified with the dawn of the digital age. Identity, payments, and access are now centralized in one place: a digital wallet.
Just as passports unlock physical movement around the world, wallets are becoming the foundational layer for accessing the modern digital world.
Digital wallets allow people to access their identity, money, and services through the online economy, giving true digital freedom to everyone, everywhere.
Across the European Union, digital identity regulations are already changing the way people prove their identity, interact with organizations, and interact with the physical world. Digital ID wallet regulations will soon allow citizens to store their national ID, driver’s license, and health certificate on their mobile devices.
Wallet as a payment gateway
Along with state-issued IDs, self-custodial wallets already support Web3 IDs. For example, you can now register and use Ethereum Name Service Web2-style domains (such as “alice.eth”) for Web3 through your decentralized application (DApp) browser. This way, the app will recognize you without having to share your long wallet address.
This is a clear signal of where things are heading: wallets are no longer just tools for holding digital assets. Wallets allow users to securely perform cross-border transactions while protecting their privacy. Things are changing.
Wallet as an identity hub
A new decentralized framework for identity will help structure future cryptocurrency wallets, turning them into secure and verifiable identity containers.
Instead of relying on centralized systems or third parties, digital credentials can now be stored and managed directly within user-controlled wallets. These may include government ID, educational background, medical records, etc.
The pilot program can already be seen being rolled out in stages around the world through the EU’s digital identity wallet, including in Germany, France, the Netherlands and Poland. Citizens will soon be able to verify their identity using verifiable credentials stored on their mobile devices.
Technologies such as zero-knowledge proofs are used to authenticate user attributes such as age and location without exposing personal data. By creating user-owned identities with secure, on-demand verification, wallets are becoming digital identity hubs.
This is in contrast to the traditional model of username and password logins and central databases that last day and night. The decentralized method allows users to verify themselves without exposing themselves to additional data honeypots from malicious attackers.
Related: CZ-owned Trust Wallet launches tokenized stocks and ETFs
Mobile cryptocurrency wallets already offer users a borderless financial payment tool that supports cryptocurrencies, stablecoins, and tokenized assets. With the number of active crypto mobile wallet users reaching a record high of 36 million in Q4 2024, it is clear that interest in self-custodial payments and digital asset management is increasing significantly.
One specific improvement is the gas abstraction, which allows users to pay for supported network fees using tokens they already own. This reduces the need to juggle separate “gas tokens” and makes payments feel more like Web2.
These types of use cases, such as peer-to-peer transactions, participation in non-fungible token (NFT) marketplaces, and on-chain commerce, are growing in tandem with growing interest. Unlike traditional financial systems, cryptocurrency wallets do not incur excessive fees, delays, or the need for banking infrastructure to intervene in economic activity.
Current payment methods still remain on the rails of the past. They struggle with reach, speed, and inclusivity. Digital wallets are not like that. Instead, what they offer is a viable solution for users who need the right tools to participate in the digital age of self-sovereign identity.
Wallet as an access passport
Beyond identity and payments, wallets also serve as an authentication layer for digital experiences. These are used to prove ownership of assets, access the TokenGate community, and unlock personalized experiences in games, events, and commerce.
From exclusive NFT drops to loyalty reward systems and play-to-earn game economies, a single wallet acts as an access pass across a wide range of platforms. These use cases are no longer theoretical, as they now exist across multiple platforms, blockchains, and protocols.
Interoperability is what makes this change possible. One self-custodial wallet allows you to authenticate across hundreds of DApps using one portable ID. Biometric unlocking and browser extension verification on mobile has become familiar. Your keys never leave your device.
A well-designed wallet will connect to hundreds of DApps. People can participate in multiple ecosystems with a single identity and asset base. Crypto wallets provide an integrated and portable solution for digital participation.
As more services and experiences move on-chain, wallet authentication is replacing the traditional sign-in model. This is not unique to crypto-native platforms. It’s for any digital ecosystem that prioritizes transparency, minimizes trust, and maintains sovereignty.
Just as physical passports prove citizenship and enable global mobility, digital wallets are becoming the preferred credentials for online identity and mobility. Trust, security, and ease of use are the key design principles that tie them together and are the principles that will help us embrace the next billion users.
As decentralized systems continue to evolve, so do wallets. They are no longer just tools. These are the foundations of digital freedom.
In the future, you will no longer be asked for a username and will be asked for a signature.
Posted by: Eowyn Chen, Trust Wallet CEO.
This article is for general informational purposes only and is not intended to be, and should not be taken as, legal or investment advice. The views, ideas, and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.