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January 3, 2025

How Would the Next Generation of Intelligent Web3 Wallets Look Like?

Web3 wallets are set to become more intelligent with AI. Uncover what the next generation of wallets might feature. Shared by Portkey, Web3 AA wallet.

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Web3 wallets have come a long way since 2008. Today, you don’t have to painstakingly write down the private keys of your digital assets in a notebook or loose sheets of paper. Secure devices, software programs, and mobile applications are more than capable of storing your cryptocurrency holdings and NFT collection.

However, Web3 and crypto wallets are still primed for exponential growth, especially as they integrate AI further. Security, for one, always needs to be beefed up. Not to mention having to streamline the user experience for Web3 newbies.

With that said, let’s gaze into the crystal ball and find out how the next generation of intelligent Web3 wallets will look like.

AI Trends for Web3 Wallets in 2025 and Beyond

1. AI Agents Within Wallets

Web3 wallets and AI agents are practically made for each other. The latter refers to programs which can run autonomously, being able to perform specific tasks for you. More importantly, they can learn and improve based on the data they receive and store, and actions they perform over time.

With Web3 wallets recruiting AI agents, like one that specialises in cryptocurrency trading, it greatly enhances the user experience for digital asset owners. Imagine a trading bot that updates parameters on its own and notify you when it starts to detect incoming price fluctuations.

What’s more, it lowers the barrier of entry for individuals transitioning from Web2 to Web3.

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aevatar.ai and Portkey: A Dream Come True?

Portkey, account abstraction Web3 Wallet

aevatar.ai is aelf’s very own no-code open-source framework for AI agents. As you’d expect, this framework empowers users to create and deploy AI agents with minimal fuss at maximum speed. You don’t need to have extensive technical knowledge in AI or software development to get an agent up and running.

What does this mean for Portkey, our Web3 AA wallet? The opportunity to be souped up via AI agent integration and be part of the next generation of Web3 wallets. Portkey already brings a seamless Web2 experience to a Web3 environment, so you only stand to adapt quicker to Web3 once AI agents are in the picture.

Stay tuned for more updates from us soon!

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2. Integration of Natural Language Processing (NLP)

Why navigate through one menu after another when you can simply type in what you wish to do after opening up your Web3 crypto wallet? That’s the power of NLP, and it’s something an increasing number of Web3 wallets will integrate throughout the year. It reduces the potential of human error and makes it more efficient for you to manage your digital assets.

Additionally, integrating NLP into Web3 wallets makes them more user-friendly. This rings true for feature-rich wallets, which might not be the easiest for new owners to familiarise themselves with.

3. Incorporation of Existing Large Language Learning Models (LLMs)

Whether it’s OpenAI’s ChatGPT or Anthropic’s Claude, Web3 crypto wallets have much to gain from incorporating existing LLMs into their systems and training them. Once these LLMs get up to speed with market data for digital assets and what comprises users’ portfolios, they transform into AI portfolio managers.

This is useful even for advanced cryptocurrency traders and NFT collectors. Having an AI-powered portfolio manager speeds up their due diligence and empowers them to identify market opportunities quicker.

4. Enhanced Security

Machine learning models can process data in real-time, enabling them to boost the security of Web3 wallets. This is already being implemented on a larger scale, with blockchains like aelf deploying the very same models to assist with auditing smart contracts. For Web3 wallets specifically, machine learning models can keep track of user behaviour.

This allows them to detect unauthorised logins to users’ wallets and other suspicious activities quicker. This prevents assets from being siphoned off, which is still a problem for cryptocurrency and NFTs today.

5. AI-Facilitated Access to DeFi

For many, DeFi can still be intimidating today. Swapping tokens, bridging assets, and yield farming require several steps to complete, and not everything can be executed instantly because of how blockchains function. However, AI can streamline these processes for users.

Take yield farming for example. Web3 wallets can include aggregators powered by AI to rebalance user portfolios and suggest protocols to them. That’s not all. These aggregators can actively search for the best yields as the user adjusts their holdings over time. No manual intervention needed.

In Closing

Thanks to the capabilities of AI, intelligent Web3 wallets have the potential to level up their game by leaps and bounds. Many processes stand to be streamlined, allowing digital asset holders to grow their portfolios with less friction.

Therefore, next-generation Web3 wallets will be more like smart asset management platforms, actively assisting users rather than passively holding cryptocurrency and NFTs. Web3 newbies aren’t left to fend for themselves and feel as if they need to digest a library’s worth of information before transacting on-chain.

*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

About Portkey

Portkey: Zero-Barrier Entry Into Web3

Portkey simplifies your connection to the Web3 world with its cutting-edge ZK social logins and ZK social recovery, offering a zero-barrier entry for users. Integrating into the Telegram ecosystem, Portkey seamlessly bridges Web2 users to Web3 through blockchain, leveraging advanced zero-knowledge technologies for privacy and security without compromising convenience.

Built on the high-performance AI layer 1 blockchain platform aelf, Portkey provides a smooth transition and an enhanced user experience, setting new standards in the realm of Web3 digital wallets.

Stay connected with the Portkey community at:

Website | X | Telegram | YouTube

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Portkey
WalletWhy It Stands OutSupported Assets
Coinbase- Publicly-listed on the Nasdaq stock exchange- Holds your assets in a 1:1 ratio and does not repurpose them200+ cryptocurrencies, including BTC, ETH, XRP, and SOL
OKX- Supports 300+ cryptocurrencies and NFTs across multiple networks- Available as a mobile or desktop app, and browser extensionBTC, ETH, XRP, SOL, and 300+ more cryptocurrencies, along with NFTs on Ethereum, Solana, BASE, and more
Crypto.com App- Rewarding if you hold and build a cryptocurrency portfolio over time- Nifty features like Crypto Earn and Recurring Buy help you grow your holding easilyMore than 350 cryptocurrencies, including BTC, ETH, XRP, and SOL
Trust Wallet- Very wide range of assets- Available as a mobile app and browser extensionOver 10 million cryptocurrencies and 600 million NFTs from Bitcoin, Ethereum, Solana, Cosmos, and more
MetaMask- Can be used to complement your main Web3 wallet- Perfect for ownership of Ethereum-based tokens and NFTsAny asset on the Ethereum blockchain
Exodus- Over 100,000 cryptocurrencies supported- Buy any of them within the Exodus walletMore than 100,000 cryptocurrencies and NFTs across 16 blockchains
Ledger Stax- 5,500+ cryptocurrencies and NFTs supported- Certified Secure Element chip to shield it from online attacks5,500+ cryptocurrencies and NFTs
Trezor Safe 5- A compact device at 23g with a 1.54-inch touchscreen- Supports over 1,000 cryptocurrencies, and has a CC EAL6+-certified chipOver 1,000 cryptocurrencies, including BTC, ETH, XRP, and SOL
SafePal S1 Pro- Slim and sleek, with a 1.3-inch colour screen to show your holdings- Can be paired with the SafePal Wallet app and browser extension to grow your portfolio30,000 cryptocurrencies and more across 100+ blockchains
ZKPsMultisig WalletsTEE
StrengthsZKPs provide wallet owners with security and privacy at one goMultisig wallets are hassle-free and secure; easy to implement for any group or organisationTEEs allow Web3 wallets to achieve a similar level of security as hardware wallets
WeaknessesTransacting parties need to interact multiple times. It’s not ideal for non-real-time applications.Transaction costs are higher due to the multiple signatures – and gas fees – needed. Transaction speeds are lower too.Cannot be easily implemented for software-based Web3 wallets as it is operating system-dependent
Wallet TypeHardware WalletBrowser ExtensionMobile App Wallet
Pros- Offers the best security for Web3 digital assets- Many brands and models to choose from- You can conveniently add it to your web browser- It doesn’t take up much storage space on your PC- You can access your assets from anywhere- You can easily transfer assets between apps
Cons- You risk losing your assets when you lose the device- The cost can be prohibitive for some- Susceptible to security breaches if your browser is compromised- Functionality may be limited for some- Vulnerable to similar security breaches as browser extension wallets- You also bear the same risk of losing your assets if you lose your mobile device