Explaining WalletConnect in detail: a narrow waist protocol between wallets and Dapps

In 2021, Crypto's user base expands from technologists and farmers to creators, collectors, and gamers. As the number of users continues to expand, a large number of new web3-native products and services have emerged. Today, there are over 1,000 protocols (over 400 of which have a TVL value of over $10 million), over 100 public blockchains, and over 200 crypto wallet applications. Clearly, the market is becoming more diverse and competitive for end-user applications (dapps) and access control (wallets).

Not long ago, dapps and wallets were very isolated from each other on different platforms. Metamask extensions were one of the earliest ways for users to interact with dapps, most of which were built for desktop browsers. Mobile-first wallet users have to go through an in-app “dapp browser” that offers a sub-par experience compared to the regular browser apps they’re used to, like Chrome and Safari. On iOS wallets, this feature eventually had to be removed to comply with App Store guidelines.

Ecosystems are fragmented. It is difficult for Dapp developers to reach mobile users. Users experience friction every time they want to connect to a dapp or sign a transaction using a mobile wallet.

Then came WalletConnect.

WalletConnect is a universal protocol that facilitates secure connections between any wallet and any dapp. Under the hood, the protocol facilitates end-to-end encrypted communication between two clients - similar to "wallet signaling".

Using their wallet, users can scan a QR code on a browser or connect on a mobile device via a deep link. WalletConnect generates key pairings and creates a session between the wallet and the dapp.

With WalletConnect, users can interact with any dapp using their favorite wallet. Developers can focus on building the best possible product — be it dapps or wallets — without worrying about how one will communicate with the other.

Users We believe WalletConnect has been and will be an increasingly important piece of infrastructure driving web3 consumer adoption for the following reasons:

Enable mobile native UX. In 2020, mobile devices drove more than 65% of global web traffic. The rise of social payment and trading apps like Robinhood and Venmo is a testament to how comfortable users are with managing their finances from their phones. In order for cryptocurrencies to reach the next wave of users, wallets and dapps also need to provide a seamless experience on mobile devices. This time, users have real control over their funds and access through self-hosted wallets, and can plug into any dapp without permission.
Safety. Most dapps today are native web apps, but desktop browsers are one of the least secure places to store private keys. While the Metamask plugin shifts this responsibility to an extension, WalletConnect handles it on smartphones, where apps are more sandboxed and less likely to compromise each other.
No permission required. WalletConnect was built from the ground up for the community, with valuable early contributions from teams like Gnosis Safe and Rainbow. With this community-first spirit, the protocol represents a consensus among different stakeholders in the ecosystem, rather than the interests of a single company. This allows WalletConnect to act as a common denominator for the widest range of use cases.
Credible neutrality. WalletConnect is a minimalist protocol with no preference as to which wallet or dapp should connect to each other. It assumes that the market will be competitive for both, promoting an open ecosystem where a thousand flowers will bloom.

A narrow waist agreement between wallets and Dapps


We believe that what WalletConnect does for wallets and dapps is similar to what TCP/IP does for web technologies and web applications.

Before the advent of the Internet, computer networking technology was tailored to meet the needs of specific applications. ARPANET (wire-based) is the terrestrial means of connecting universities and government agencies, SATNET (satellite-based) enables transatlantic communications, and PRNET (radio-based) enables communications between mobile environments.

While all of these network technologies provide bandwidth, combining them is very difficult because each network has different interfaces, packet sizes, conventions, and transfer rates. This means that applications built for one network technology cannot easily be used for another network technology.

If we think of this ecosystem as a two-way market for supply (bandwidth) and demand (from applications), the original internet faced a cold start problem. New web technologies must be designed for differentiated use cases and engage users from the ground up. Applications must choose the networks they want to be compatible with, and make trade-offs based on network participants and capabilities. Imagine a social network or email service provider having to build different solutions for Wifi, LAN and 5G. The ecosystem is fragmented, as is the target market for service providers and the available bandwidth for new applications.

TCP/IP emerged and unified this ecosystem. Its minimalist, unassertive nature makes the protocol universal across applications based on it and the technologies that support it. This resulted in the famous hourglass model, in which TCP/IP acts as the "narrow waist" in the middle.