Topics Crypto
Bybit Learn
Bybit Learn
Beginner
Aug 9, 2022

How to Use WalletConnect

The popularity of cryptocurrency applications is on the rise, with new installs of the top 20 cryptocurrency applications surging by a staggering 902% during the fourth quarter of 2021. To access and utilize the functions of these decentralized apps (DApps), users require compatible blockchain wallets. Integrating multiple crypto wallets in every application is a cumbersome task. Therefore, WalletConnect serves as a bridge that effortlessly connects blockchain wallets to multiple DApps.

What Is WalletConnect?

WalletConnect is an open-source protocol that helps implement established connections between various crypto wallets and decentralized finance (DeFi) DApps. The protocol establishes a remote, encrypted connection between the wallets and apps. It uses a shared key between two peers to develop a symmetrically encrypted connection. Simply put, WalletConnect forms a bridge connecting any mobile wallet to any decentralized web application.

With WalletConnect, users can connect over 170 WalletConnect-compatible wallets, such as MetaMask and Trust Wallet, with over 450 DApps, such as Uniswap and Aave. This connection between DApps and wallets is initiated when one peer scans the QR code (or deep link) with a standard WalletConnect URI, and is established when the counterparty approves such a connection request. When WalletConnect is integrated within a particular DApp, it becomes easier to form a reliable and secure connection. This is much safer than deploying MetaMask or any other crypto wallet.

WalletConnect 2.0 Upgraded Features

WalletConnect 2.0 promises further infrastructural improvements on its v1.0 features:

Chain Agnostic: WalletConnect 2.0 will be able to work on any blockchain preferred by the user, such as Ethereum or Cosmos.

Multi-Chain: WalletConnect 2.0 allows for multi-chain integration — that is, the protocol not only supports different chains, but it also enables users to connect a single wallet to multiple chains simultaneously.

Decentralized Messaging: Encrypted wallet-to-wallet messaging will give users control over who can send messages to their wallets.

Push notification: WalletConnect 2.0 will contain push notification features that notify users of incoming transactions.

WalletConnect — the “narrow waistband” protocol between any wallet and any DApp

Source: medium.com

How to Connect DApps With WalletConnect

The process of connecting DApps with WalletConnect is quite simple and quick. However, the process differs depending on whether you’re using desktop or mobile. Before you begin, ensure that the selected DApp supports WalletConnect. Follow these four steps to start using WalletConnect within your DApps:

1. Open a Compatible DApp

Open the mobile or web DApp that you wish to connect to, in your mobile or desktop browser. Make sure that WalletConnect is compatible with the particular DApp. Before you start, you can try using this example application available online: https://example.walletconnect.org/

2. Connect Your Wallet

While we’re using Uniswap as an example, almost all DApps on Ethereum today have an option to Connect Wallet (or similar). Use your wallet and choose this option. You’ll be able to connect using WalletConnect if your DApp supports it.

Connect Wallet button on DApp

Source: Uniswap

i. For Desktop

Select WalletConnect and use your wallet to scan the QR code that’s displayed.

QR Code on WalletConnect desktop

Source: WalletConnect

ii. For Mobile

If you’re using your mobile browser, on selecting the WalletConnect option in your DApp you’ll see an option to Choose your preferred wallet. Select your preferred wallet to connect from the displayed list.

List of wallets on WalletConnect mobile

Source: WalletConnect

This will open your wallet, and then you can move on to authorizing your DApp.

3. Authorize the DApp

On scanning the QR code, your chosen/preferred wallet will open up. You’ll receive a pop-up asking if you wish to approve the connection to the chosen wallet. Once you authorize the connection, the DApp can successfully access and interact with your wallet.

Authorizing the connection between Uniswap and WalletConnect

Source: Uniswap

The DApp can now be used to withdraw funds or assets (i.e., tokens) from your wallet, up to the limit set by you.

4. Confirm Transaction

You’re now connected and ready to use WalletConnect on your DApp. When you make a transaction within the DApp, a pop-up requiring your approval for the transaction will appear. Check the transaction details and click Confirm Swap. Then a pop-up window will appear in your wallet, seeking your transaction confirmation. Simply click on Confirm after checking the details.

Confirm Swap button on Uniswap

Source: Uniswap

In this way, every user can connect DApps with WalletConnect through its relay server to ensure the most secure and encrypted transactions.

Is WalletConnect Safe?

Mobile applications in general are not as secure as hardware wallets. Hardware wallets come with well-defined security and specific security solutions that allow them to more securely store and interact with users’ private keys.

However, WalletConnect establishes a secure, encrypted connection between your wallet and DApp. All information transmitted between the wallet and DApp is encrypted symmetrically with a shared key that only these two parties possess. Whether you scan a QR code or use a deep link with a mobile wallet, the primary key isn’t shared with the bridge server — that is, the key isn’t leaked to any third party, including the intermediary carrying out the secured transaction.

How to Ensure the Safest Connection With WalletConnect

First, check that the recipient address and transaction amount are correct before confirming the transaction. This is to ensure that the WalletConnect App isn’t altering the transaction details with any intention of sending a malicious transaction. To prevent any fraud, DApp developers can choose to host their own bridge servers/intermediaries and ensure full protection.

Additionally, it’s a good practice to disconnect your wallet from the DApp once you’re finished with your transaction. You must also make sure that you’re accessing the DApp with a secure, trusted URL.

Final Thoughts

WalletConnect is a popular, distinctive product that has become a boon to the world of DeFi DApps. It simplifies the confusion and complexity involved in connecting different wallets with DApps that support multiple chains. Additionally, WalletConnect’s upgrade to v2.0 will provide an even more user-friendly interface.

With cryptocurrency wallets becoming increasingly popular and complex, WalletConnect offers a one-stop solution for users to carry out crypto transactions securely, and to strike an interaction between any DApp and any wallet.