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How To Create Your Own Defi Wallet

Before explaining how to delve into DeFi wallet development which apparently is one of the most favored types of DeFi projects, let's understand what a DeFi wallet (in brief) is. DeFi Wallets are the essential tools & gateway to decentralized finance. The decentralized crypto wallets serve as the gateway to a whole decentralized ecosystem. Utilizing these wallets gives you access to this innovative financial and economic system. All  individuals want to gain access to DeFi wallet development services  while maintaining privacy and avoiding intermediaries. 

What is a DeFi wallet?

DeFi wallets are non-custodial wallets and tools that enable a platform to acknowledge you despite the lack of knowledge regarding any of your personal details. Simply put, a DeFi wallet allows you to exchange assets. Earn from lending, staking, and farming services; check your NFTs (non-fungible tokens), or connect to platforms to mint and buy them.

Developing a DeFi wallet differs slightly in some ways from developing conventional centralized solutions. Here, all operations are powered by self-executing smart contracts. Creating a DeFi wallet involves several stages, so below, let's discuss them individually.

Stages of DeFi wallet creation

Discovery stage

Before starting, one should be clear about the purpose of your DeFi token and what problem it aims to solve. Your first step should be determining the project's goals, target audience, risks, etc. The tokens should solve real-life issues and bring them into the limelight among organizations and people. In order to thrive, you need to curate an app that will be functional for its potential users. Conducting a market analysis will help disclose the requirements of your potential consumers. 

The competition (in the DeFi market) is becoming more and more robust as new platforms quickly emerge. So, before starting the DeFi wallet development process, you should know which apps are already popular. Also, know which apps to go for and how to utilize this information to your advantage (in order to stand out). In this stage, business analysts help you make a list of features and list out your project requirements. In the development process, this step also helps define the scope of work, the structure/ make-up of the development team more accurately, and the most appropriate technology stack. It is also essential to select the type of wallet that best suits the project's goals, whether desktop, mobile, or web. According to statistics, the discovery phase optimizes the project budget and reduces possible risks, so we recommend taking it. 

The development procedure

Once you've collected relevant data from the discovery phase, you move on to the next step, which is to start building the architecture of your future product. In this step, you need to determine the components of the process and how they will interact with one another. Using a custom pre-build architecture, developers will be able to implement the tasks that are assigned to them. 

A pertinent decision that you have to make at this stage is: how do you wish to host your DeFi wallet? Now, several options exist, such as cloud, local servers, or hybrid platforms. Then comes the question to answer pertinent questions such as which tokens your wallet should support? Which blockchain platform will it operate? Ethereum is the most popular option today; it is the primary forum for developing decentralized finance. 

Not only is Ethereum immensely popular, but its ecosystem provides white-label solutions that allow you to minimize development costs and accelerate the time to market. If some constraints exist and this platform doesn't suit your requirements, you can choose another, like Binance Smart Chain (BSC). It's important to know that any DeFi application is based on a specific algorithm that sets off the authentication of transactions of network members. Thus, ensure that the DeFi wallet development company checks that and helps you culminate the best algorithms for your product.

UX/UI design

Does it surprise you that your application might have interesting and useful features but still not enough? Rather, a more significant and challenging task is to collect them into a single user-friendly interface. To achieve that, UX/UI designers come into play. UX/UI is more than just generating the look and feel of your wallet. 

In this stage, you need to analyze the user behavior so that the application interface meets their forecast and needs. Users often opt out for centralized solutions because of the poor UX of DeFi platforms. The design is the frontrunner and an extremely integral part of the whole DeFi wallet development procedure. Having designers as part of your development team will greatly simplify and accelerate the development process, enabling design specialists and developers to communicate closely. We recommend you go for companies offering a range of DeFi wallet development services. For instance, covering a wide spectrum of tasks to help create your DeFi product, from business analysis design to programming, testing, and support.

The technical implementation 

After all the above processes, you require engineers to find and choose the technology stack that best suits your intended goals. Key focus areas should always be the frameworks, libraries, databases,  programming languages, and other development tools. Profound expertise in building decentralized solutions is required to develop a DeFi wallet. We advise you to work with experienced blockchain developers who are aware of all the features of building algorithms, developing smart contracts. Ensuring system security is also important. This will further benefit you as a product creator. It ensures that the app is functional and secure enough that the users can trust it with their funds. 

Testing /Auditing

A step that should be considered in the development process is software testing. If you want to avoid accumulating bugs, deploying QA specialists at all stages of product development is best advised. Testing the DeFi wallet is not only limited to verifying the features are working correctly and meeting the project's requirements but also ensuring that your application's smart contracts are secure and free from vulnerabilities. It's not easy or complex. Rather, it requires a lot of experience to deploy a smart contract audit, but you should take this step because it is a worthwhile investment.

Closing remarks

To create a high-quality and competitive product, you need more than just knowing how to develop a DeFi wallet. You should first understand what wallets are already on the market. This will help you identify competitors, study their strengths and weaknesses and develop ideas for how your product can be better. It's best to reach out to a Defi wallet development company that can help you create your own Defi wallet.