??? Can you really memorise a 12-word seed phrase?

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?? Can you really memorise a 12-word seed phrase?

The Background

• Blockchain wallets have faced challenges in achieving widespread adoption because of complexities such as remembering seed words and managing private keys.

• Some developers are exploring solutions to eliminate the need for seed words and private keys while maintaining user control.

• One option is to use custodial wallet providers for easier onboarding, but this comes with risks as seen in past incidents like Mt. Gox and FTX hacks.

• Many crypto users still prioritize noncustodial wallets backed up by seed words for enhanced security.

• The question arises whether there’s a way to combine the security of noncustodial wallets with the convenience offered by exchanges.

Today’s State of Affairs

• Web3 companies are striving to develop user-friendly wallets that don't require complete trust in a centralized custodian.

• These companies aim to create wallets as easy to use as email accounts while ensuring the security of users' identities and funds.

• For example, Magic Labs offers a developer kit and wallet infrastructure for creating seedless wallets. Private keys are encrypted and stored in an Amazon Web Services Hardware Security Module, with all signing operations performed within the HSM.

• Magic wallets utilize email tokens instead of passwords for authentication, sent to the user's email address for a limited time.

• Web3Auth is a key management network that splits private keys into three shares: stored on the user's device, the Web3Auth network, and a backup device or offline. Two shares are required for login.

• Dfns is an MPC key management network where private keys are divided into multiple shards across nodes.

• Transactions are authorized by Dfns nodes producing a joint signature using the shards.

• Dfns operates as a passwordless and seedless wallet, with no shares kept on your device or as a backup.

What Comes Next?

• The adoption and acceptance of new wallet technologies by the masses is still uncertain.

• These technologies, despite their simplicity, may still be considered too complex by users who prefer to keep their crypto in exchanges.

• Users who prioritize self-custody may have reservations about relying on MPC networks or Amazon's hardware security module for transaction authorization.

• These new technologies are expected to spark discussions about maintaining user control over funds and redefining the concept of "self-custody."

[Source: Cointelegraph]

What do you think is the future of digital wallets in terms of user adoption and acceptance?

?? Fintech & Payments

? Fintech firm Ripple is expanding its operations in the Middle East by establishing a new office in DIFC.

? Abhi, an emerging embedded finance platform in MENAP, has made history by becoming the first fintech in the region to issue Islamic bonds worth $7.1 million.

? DBS Bank is looking to expand its presence in Dubai to enhance its foothold in the Middle East.

? London-based Lanistar is expanding its operations globally by opening offices in Dubai and Sao Paulo.

? The Jordan Payments and Clearing Company and Rainmaking Innovation are establishing the JOIN Fincubator, a fintech incubator aimed at fintech startups in Jordan.

? Saudi Arabian fintech company Mozn is entering the UAE market, with a specific focus on fraud prevention technologies and anti-money laundering and AML/CFT solutions.

? Fintech and web3 community platform Finoverse is opening its Dubai office to enhance blockchain collaboration between the UAE and Hong Kong.

? Visa and Tarabut Gateway are partnering to expand open banking in the MENA region and develop data-driven services like credit risk assessments, advanced analytics, insights, and eventually cross-border payment and lending solutions.

?? The World of Web3

? Warner Music Singapore partners with Affyn to explore new opportunities in the gaming industry, leveraging Web3 technology to deliver immersive experiences and promote artist engagement.

? Enjinstarter MENA, a Web3 launchpad company, has received initial approval from VARA as it aims to become the premier launchpad and incubator for Web3 experiences in the Middle East.

? Animoca Brands has signed an MOU with STC Play to collaborate on producing video games in the MENA region, aiming to establish a strong presence and bridge the gap between global and local game developers and audiences.

? The Metaverse has the potential to contribute $55 billion to the economies of Saudi Arabia and UAE by 2035, benefiting sectors such as tourism, retail, property, and gaming.

?? Crypto & Defi

? Saudi Pepe, a meme coin with a Saudi theme, has seen a significant surge in trading volume, reaching $30 million

? OpenAI's Sam Altman approaches $100 million in funding for Worldcoin, a crypto project that utilizes iris scanning to verify human identity and distinguish from robots.

?? The State of Investment

? Reef is launching a $10 million Accelerator Program for Middle East-based Web3 projects on the Reef Chain, fostering growth and Web3 adoption in the MENA region.

? London-based fintech company Smart has secured $95 million in Series E funding as part of its mission to revolutionize the global retirement savings market.

? UAE-based fintech company TWIG has raised a pre-Seed round exceeding $1 million.

? Wosul Payments, a Saudi Arabian fintech company, has raised $3.2 million in a Seed round to support its cloud-based POS system that enables merchants to accept digital transactions.

? Egyptian fintech startup Balad has raised a 7 figure pre-Seed funding to launch its remittances platform and provide affordable financial access to migrants and their families in Egypt and the GCC region.

?? Report of the Week

The Metaverse and Standards: In this whitepaper focusing on Australia by Standards Australia, the Metaverse is defined as a network of interconnected virtual worlds with key characteristics: presence, persistence, immersion, and interoperability. It has received significant investment and is projected to generate trillions of dollars by 2030. Risks associated with the Metaverse include human, societal, regulatory, legal, information, and financial risks. The report suggests that Australia can leverage its existing regulations and initiatives related to online safety, privacy, and AI ethics. Potential categories for Metaverse Standards in Australia include security, accessibility, content creation, governance, ethics, interoperability, and child safety. It is recommended to prioritize experiential authenticity, emotional and behavioral privacy, and human agency. Focus areas for standards include safety, responsible AI, and child safety.? Click here to download the full report.

What do you think should be prioritized in establishing Metaverse Standards? Leave your comments below. ??

?? In Other News…

? Twitter: Elon Musk announced the removal of inactive amounts to address bot accounts through Twitter's Blue subscription and verification system.

?? The Podcast for Fintech Enthusiasts

In this episode of Couchonomics, I talk with Wael Fakharany, CEO of Edenred Middle East, as he shares his insights on leveraging technology-driven financial solutions to empower businesses across sectors like retail, facilities management, and construction. Tune in to this insightful talk where we discuss financial inclusion, open banking, growth opportunities, user-centric thinking, and the adoption of emerging technologies.

?? This Week’s Payments News

??? And that brings us to the end of today’s Crunch

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