The cryptocurrency industry is evolving at a rapid pace, and as we enter the multichain era, wallets need to adapt to remain relevant and useful. In Episode 16 of Hashing It Out, Phantom Wallet CEO Brandon Millman speaks with Elisha Owusu Akyaw about the challenges and opportunities that lie ahead for wallet applications in this new landscape. They also discuss airdrops, regulations, and what a multichain world means for adoption.
Brandon Millman's Journey to Building Phantom Wallet
Before creating Phantom Wallet, Millman gained valuable experience building decentralized tools, such as Matcha.xyz, a decentralized exchange aggregator on Ethereum, and 0x APIs powering other aggregators. His interest in wallet applications stemmed from their crucial role in onboarding new users to the cryptocurrency ecosystem.
Initially, Phantom Wallet focused exclusively on the Solana blockchain, which Millman believed had the right ingredients to support a thriving ecosystem. This bet has paid off, as Solana has witnessed significant growth in 2021 and 2022, even amidst a bear market.
Adapting to a Multichain Landscape
Millman emphasizes that as the cryptocurrency space becomes increasingly multichain, wallet applications must adapt accordingly. This process involves overcoming several technical hurdles, such as:
- Developing methods for deriving keys across different blockchains.
- Building systems to manage multiple nodes on the back end.
Airdrops and Wallet Applications
Airdrops have recently become a topic of conversation in the wallet space, with some suggesting that they could be used to decentralize wallet operations. However, Millman argues that the costs associated with airdrops outweigh their potential benefits and that they do not lead to meaningful long-term impacts. For example, Uniswap's airdrop did not create a significant difference in the long run.
Regulatory Concerns in the Crypto Space
Regulation is a growing concern for the cryptocurrency industry, and self-custody wallets are not immune to these challenges. Millman stresses the importance of projects being aware of the regulatory landscape and staying prepared for potential changes.
As the cryptocurrency ecosystem enters the multichain era, it is crucial for wallet applications to evolve to stay relevant and meet user needs. Phantom Wallet CEO Brandon Millman's insights into the technical and regulatory challenges that wallets face in this new environment provide valuable guidance for wallet developers and users alike. By overcoming these obstacles, wallets will be better positioned to support a truly decentralized and interconnected future for cryptocurrencies.