Multicurrency Wallet App Development: Guide for Businesses

Have you ever considered the essence of multicurrency wallets and why they are gaining public attention nowadays? These wallets not only enable you to store and operate your money but interlink fiat with cryptocurrencies by simplifying payment, trading, and exchange.

Businesses can expand their services by integrating the cross-chain activity through multicurrency adoption to simplify cross-border payments, win with fee optimization, and promote a global audience reach. The crypto assets and digital payment platforms market is anticipated to range between $5-$7 bln worth, making multicurrency wallet development a promising option for businesses. In this article, we shed light on how to develop one, analyzing the functions, types, benefits, etc., to encourage informative decisions.

What Is a Multicurrency Wallet and Why It Matters

Multicurrency wallets attract business attention, considering the effortless usability and convenience. They enable businesses to perform actions like storage, reception, and fund sending with government-issued money and crypto. 

Key Functions of Multicurrency Wallets

A multicurrency wallet simplifies B2B and B2C’s financial management by performing the following functions:

• Storage: enterprises and clients can effortlessly preserve their holdings (both crypto assets and fiat) all in one interface, eliminating the need for extra accounts. 

• Sending/Reception: easy for sending and receiving versatile currencies within a single platform.

• Conversion: multicurrency wallets enable near-instant conversion considering the fiat-to-crypto integration as well as real-time fiat to fiat exchange, all in one interface. This function reduces the user’s reliance on a banking institution since the multicurrency wallet offers cheaper conversions. 

Types of Wallets: Mobile, Web, Hardware, Desktop 

Although multicurrency wallets are efficient, effortless in operation, and cost-preserving, there is a distinction in the convenience and risks associated with the wallet type.

Why Businesses Invest in Crypto Wallet Apps Today

Large-scale businesses and startups invest in multicurrency wallet development and implementation since the high potential and strong competitive advantage it brings to the table. 

• Global Audience Coverage: businesses don’t have to worry about transactions and the bank settlement process, since the multicurrency wallets can both deliver the required currency and automatically convert it per the real-time rate. 

• Near-Instant Transactions: startups and enterprises enjoy faster transaction speeds, which boost the overall customer experience worldwide. 

• Enhanced Security: security features like encryption, 2FA, and blockchain technology simplifies transaction processing, making it traceable, as well as protecting clients’ data both at rest and in transit. 

• Simplified Financial Management: since operations with all currencies are performed within a single interface, it brings convenience to businesses to analyze their income and budgeting. Additionally, it promotes more effective preparation for both internal review audits and overall compliance-related assessments. 

Core Benefits of Building a Multicurrency Wallet

Building a multicurrency wallet can expand the business's competitive edge since combining user convenience with effective revenue generation. Here’s the list of benefits for businesses.  

Supporting Multiple Coins and Tokens in One Interface

Since businesses don't have to download the separate wallets to store crypto holdings and digital assets, a single multicurrency platform can boost user experience by reducing friction and influencing clients’ thoughtful decision-making. There is no need to switch between wallets to check on the transaction status, which eliminates friction, leaving the client in full control of their asset-relevant performance. 

Streamlining Crypto Transactions for Your Users

With integrated QR code scanning or easy address input, crypto transactions are easy to transfer, intensifying user experience. Another point is integrating crypto swap mechanics directly into the multicurrency wallet, so that the clients can convert one digital asset into another within a real-time exchange rate, which both saves time, reduces friction, and can bring a significant level of convenience, when it comes to fee payment. 

Expanding Revenue Streams with Staking, Swaps, and Fees

One of the principal additional benefits the enterprise or startup can obtain is configuring the revenue stream appropriate to its business model and strategic needs. 

• Transaction Fee: a winning model to all business types, since it can gain a small revenue percentage as a fee from transactions, swapping, or exchange. 

• Conversion Fee: another classic profit generation approach, since the company earns from across crypto and fiat conversions. 

• Liquidity Provision: in-app swaps involve the integration with DEX or liquidity providers. Enabling businesses and users to swap between cryptos in a single platform can provide businesses with a percentage from each swap. 

• Staking Service: why not integrate staking functionalities for PoS cryptocurrencies, enabling clients to lock up their assets? As an outcome, the business can take its percentage from the stake reward.

Integrating Crypto Payments into Business Systems

Accepting crypto as a payment method within the multicurrency wallet can open additional channels for businesses to serve crypto-native users covering a larger target audience extent. Integrating the analyzed wallet into the overall e-commerce platform or even point-of-sale system can alleviate crypto management. Finally, embedding multicurrency wallets can suit accepting cross-border cryptocurrency payments, thanks to the higher speed and lower transaction cost. 

Key Features of a Multicurrency Wallet

A multicurrency crypto wallet offers a comprehensive suite of features designed to manage diverse digital assets efficiently and securely. 

Private Key Management and Recovery

The key management/recovery differs significantly depending on the multicurrency crypto wallet type. 

Non-Custodial Wallet

In a non-custodial wallet, the business has full control over the assets and ownership of their private keys. Depending on the platform, the keys will be securely stored on the user's device, for instance:

• In a mobile secure enclave.

• A desktop keystore. 

• A hardware wallet

• Encrypted in the local storage for web-based wallets.

They are only accessed when unlocked with password or passphrase. It’s important to note that once lost, the private key cannot be recovered for the non-custodial crypto wallet. 

Custodial Wallet

In a custodial wallet, whether it’s a web, mobile, or desktop-based variant, businesses do not control their private keys. They are managed and stored by the wallet provider in the centralized infrastructure. This actually minimizes the burden of key management and is about key recovery in the case of loss. Nevertheless, businesses don’t have full ownership over their digital assets and have to rely on the provider’s security. 

 Gain insights into the differences between custodial and non-custodial wallets.

Multi-Signature Support

Multi-signature support is one of the robust security features, requiring the approval of multiple parties to authorize the transaction. Not all multicurrency wallets, same as a cryptocurrency wallet development, support multi-sig, since it requires architecting unique multi-sig logic for each supported blockchain. Consequently, it will require exquisite developers’ efforts and considerable financial investment. 

Why is multisig an exclusive multicurrency wallet feature? That’s due to the ability for businesses to use a single, high-security protocol across different portfolios of versatile digital assets. 

The uniqueness of multisig support via the multicurrency wallet comes with its ability to abstract different blockchain rules into a standardized layer of collaborative security and shared permissioned control across a multi-asset portfolio. This significantly reduces the need for businesses to manage separate and isolated multisig solutions for each crypto asset. 

Real-Time Transaction Tracking and Analytics

Multicurrency wallet provides instant updates on the transaction status, eliminating user anxiety towards crypto transfers. Additionally, clients can track transactions across different blockchains all within a single interface, which represents cross-chain visibility within the multicurrency wallet. 

This is a unique feature as it contributes to solving the fundamental challenge of cross-chain fragmentation. 

Blockchain networks are independent and don’t natively communicate with each other. For instance, if the company executes a transaction on Ethereum, it will be visible on the Ethereum blockchain. Nevertheless, when using a bridge to make a transaction to another network, it will be a new and separate transaction.

 

Why is a multicurrency wallet with real-time tracking and analytics unique as it integrates with different blockchains simultaneously.  It presents the cross-chain visibility by normalizing data from different chains aggregating them into a single dashboard. As an outcome, the enterprise can track the full journey of their funds from the initiating blockchain network to the destined one, all within one interface. This feature reduces the need for managing diverse portfolios within multiple blockchain networks. 

Hardware Wallet Compatibility

Hardware wallet connectivity is another multicurrency wallet’s essential feature, as it intertwines the convenience of hot and cold wallet integration supporting multiple asset types within a single integrated platform. Here are three reasons for feature uniqueness:

Unified Security for the Diverse Portfolio

A multicurrency wallet with hardware compatibility enables businesses to control their entire portfolio, including diverse crypto assets, from a single user-friendly interface. The essential benefit there is that the hardware-level security standards, such as secure key storage and transaction signing, apply across all supported assets. This reduces the need for business representatives to operate separate wallets for different currencies.

Enhanced Transaction Security 

The hardware wallet preserves private keys, enhancing their protection against malware attacks and phishing. The multicurrency wallet app serves as a user interface when business representatives want to make a transaction. It prepares transaction details and sends them to the hardware device for signing. Once signed within the device, the transaction is broadcast to the blockchain network, while the private keys remain in the hardware wallet, enhancing asset safety.

Staking and Passive Income Options

This distinctive feature streamlines and centralizes the overall complex, multi-step process, enabling businesses to earn passive income from a diversified portfolio through a single application.

Here’s how staking and passive income options are a unique feature:

Consolidated Passive Income

Staking and reward earning relate to only digital assets that operate via the Proof-of-Stake consensus mechanism. Without integration, businesses would have to manage separate wallets for each asset they would like to stake individually. But multicurrency wallets with staking features simplify it with a consolidated ‘Earn’ section. The staked assets and earned rewards from different networks can be viewed in one place. 

Seamless User Experience

Multicurrency wallets minimize technical complexities associated with the staking process for each blockchain. Whether the wallet is custodial, offering staking as a service, or non-custodial, that allows direct staking, it provides a single interface that streamlines the process. Businesses and clients can earn rewards without manually interacting with different protocols or exchanges. 

Strategic Asset Management

This feature provides businesses and investors with a convenient way to manage capital by allocating supported digital assets into staking opportunities directly from their wallet. This approach allows their portfolio to obtain higher returns across different Proof-of-Stake assets, eliminating the need for separate platforms. 

Multiсurrency IBANs

A multicurrency IBAN is a unique feature for the multicurrency wallet as it enables businesses to receive, hold, and process payment in multiple fiat currencies within a single bank account. Here’s how multicurrency IBANs bring distinctiveness:

Centralized Approach to Global Banking

A standard IBAN is attached to a specific country and currency. If a business would like to receive cross-border payments in different currencies they would have to open separate bank accounts with different IBANs per each fiat asset. A multicurrency IBAN promotes centralized management of multiple currencies within a single IBAN within a single account. This simplifies administration and reduces the complexity of overseeing international finances.

Automated Currency Routing

A multicurrency wallet reduces the need for manual sorting and currency conversion due to the automated currency routing. With multicurrency IBAN, clients can send payments in different currencies to the same account number, which will automatically sort payments and deliver them to the right currency balance within the business’s wallet. 

Cost and Time Efficiency 

Businesses engaged in international trade or cross-border payments can avoid unnecessary currency conversion fees. Holding funds in currencies they receive enables enterprises to choose when to convert, taking advantage of the favorable exchange rates instead of experiencing automated conversions at a potentially high rate upon receipt. 

Security Measures in Wallet Development

Security measures are central in multicurrency wallet efficiency and safety as it involves a multi-layered approach to secure data, authenticate users, and safeguard private keys. 

End-to-End Encryption and Data Protection

End-to-end encryption represents a foundational layer of sensitive data protection against interception and tampering. E2EE implies that all sensitive data regarding transaction details and private keys are encrypted on the sender’s device implying that only the recipient’s device can decrypt it.

Enhance your comprehension of the role of cryptography in the blockchain.

Two-Factor and Biometric Authentication

Two-factor authentication is a security measure that intensifies the overall multicurrency wallet's security level by imposing an additional requirement of providing a piece of information only the user possesses. This can include SMS code, temporary code, or access confirmation via the email. These measures are applied to prevent identity manipulation and validate the user before they access their wallets or completing the transaction. 

Biometric authentication refers to identity verification through the user’s physical characteristics, such as fingerprint scanning through Touch ID or face scan through Face ID to prevent identity theft and accelerate wallet access, as no PIN typing is needed. 

Cold Storage and Offline Backups

Cold storage is an alternative to Internet-based storage of client’s private keys. Instead, this approach implies preserving a significant amount of private keys exclusively offline using hardware devices to disconnect them from the Internet. This reduces the risk of hacking or cyberattacks. 

Offline backups put into perspective creating physical copies of the significant aspects of wallet information including encrypted private keys or recovery seed phrases to keep them away from Internet access. The purpose is to ensure the possibility of asset recovery in the case of wallet loss. 

Anti-Phishing Protection and Secure Codebase

The anti-phishing protection covers versatile strategies aiming to prevent any deceptive attempts of stealing client’s/businesses' private keys. The measures such as URL verifications, warning systems for suspicious links, AI/ML integration for anomaly detection, Transaction Simulation/Pre-signing Review for checking on discrepancies in case of phishing attack has tampered with transaction details.  

Secure codebase brings fundamental touch to multicurrency wallet development since it touches upon development practices applied to write and review the wallet’s programming code, safeguarding it from vulnerabilities and exploits, all to prevent hackers’ attempts to compromise user funds and sensitive data. 

How to Build a Multicurrency Wallet: Development Process

A multicurrency wallet development requires in-depth planning and market research to clarify what specific features, blockchain networks, and third-party the app will include to ensure the high quality tech development, security implementation, yet being regulatory compliant. 

Step 1 - Requirements Gathering and Tech Stack Selection

Gathering project specifications implies a thorough identification of the target audience and their specific pain points. For instance, a startup might need a multicurrency wallet with limited crypto support and a simplistic interface; or it’s an experienced trader who needs advanced capabilities like staking and in-depth analytics. 

Once the requirements are collected, the technical blueprint is created. The team decides on what specific technologies to include, which consequently, will reflect the requirements within the practical product development. 

• Programming languages: multicurrency wallet development can incorporate the backend languages like Python or Node.js for server-side logic and API integrations. Developers can use JavaScript for frontend alongside the frameworks to architect a user interface. Solidity can be selected for smart contract development on the blockchains, like Ethereum. 

• Frameworks: React or Flutter can be considered to craft a cross-platform solution to promote accessibility of the wallet for Android, iOS, and web version, all within a single codebase, just to save time and resources. 

• Blockchain integration: last but not least, development experts have to decide on how to connect each of the selected networks, whether it has to be by running their own blockchain nodes or using third-party APIs for faster integration. 

Step 2 – UI/UX Design for Multi-Token Flow

UX/UI are more than just tailoring an aesthetically appealing wallet but involving the client-centric approach to make the application clear, intuitive, and trustworthy. Here’s a breakdown of what will be covered at the UX/UI design development step:

Wireframing: the major purpose of wireframe is to present the key user flows, like sending transactions, token swapping, or backing a seed phrase, all to make sure the logical and information architecture is sound. Wireframing is just about sketching the layout, structure, and functionality, it excludes any aesthetical appeal. 

Prototyping: once the wireframe is approved, designers start working on a prototype, or an interactive model that simulates the user's journey within the app. Business representatives and clients can click on buttons and move through the interfaces as if it’s a fully functional prototype. Prototyping matters to collect feedback and perform usability testing just before making any coding activities. 

User Interface Design: the designers implement visual design elements, like brand patterns, fonts, colors, etc. Multicurrency wallets usually circulate within a minimalist aesthetic to reduce cognitive load among the clients and ensure a cohesive user experience. 

Step 3 - Smart Contract and Blockchain Integration

The smart contract and development phase is the core in architecting the core functionalities of the overall multicurrency wallet as it underlines the direct in-app flow interactions with the blockchain network. 

Smart Contract Development: developers prepare custom smart contracts to offer advanced features within the smart-contract-enabled blockchains (like Ethereum or Binance Smart Chain). One of such instances is a multisig support, which acts like a safe on-chain vault for funds  and can be accessed only if a specified number of authorized parties approve the transaction. Another example is staking function. The smart contract governs this function and handles funds locking and reward distribution. 

Explore best practices in Solidity programming for a secure smart contract.

Blockchain Integration: that’s one of the essential aspects in the multicurrency wallet creation with its direct relevance to the blockchain software development, since the app’s backend has to communicate with each of the supported blockchain networks. 

• Running Full Nodes: this is the most secure yet cost-intensive method for businesses to run their full nodes for each blockchain involved. Instead of relying on the third-party, a full node is a computer that downloads, and verifies the overall history of blockchain, giving the wallet full control. 

• APIs Involvement: this is the most common yet scalable approach as the APIs like Infura or Alchemy provide direct connection with the blockchain eliminating the need to run a full node. Well, by bringing flexibility and cost-efficiency, this leads to the wallet’s dependence on the third party for the data.

Private Key Management: this is one of the fundamental tasks of the overall development stage. In the non-custodial wallet, the backend and smart contracts have to facilitate the client's ability to have full control of their private keys which are usually encrypted and stored locally. The wallet’s code must make sure that the transactions can be signed only with the private keys, without any exposure to the Internet. 

Multi-Token Support: the wallet is programmed to recognize and interact between the different token standards. For instance, if integrating the support for the ERC-20 standard on Ethereum, the wallet will recognize and handle tokens that abide by the rules (USDT, etc.).

Step 4 - QA, Testing, and Security Audits

This step goes beyond the basic bug hunting, it aims to validate the wallet’s performance and UX functionality under different conditions. 

• Functional Testing: refers to checking whether the wallet’s functions like swapping, buying, transferring, receiving work in a correct manner. Additionally, this test type checks whether the transaction history updates occur in real time on multiple blockchains. 

• Performance Testing: this testing procedure aims to check the multicurrency wallet’s scalability to make sure it can handle large volumes of transactions and API calls for the market data without compromising the speed.

• Integration Testing: it aims to confirm whether the wallet can seamlessly interact with its components including API integrations, blockchain networks, and hardware wallets, etc. 

• Usability Testing: analyzes whether the wallet’s UI is intuitive and maintains the overall customer journey from onboarding to the daily use in a logical fashion. 

Step 5 - Deployment and Post-Launch Support

Deployment refers to releasing the multicurrency wallet to the principal marketplaces, including App Store and Google Play for the mobile version. This requires in-depth preparation, including meeting the platforms’ metadata, and preparing necessary app store listings, and screenshots. 

Deployment of a web-based wallet requires configuring secure cloud servers and setting up the backend infrastructure to manage large transaction volume and user data. 

When it comes to a non-custodial wallet, smart contract and blockchain integrations that were built during the development phase are also deployed.

Business Use Cases for Multicurrency Wallets

Multicurrency wallets present a wide range of strategic benefits for businesses and startups covering the enhancement of financial operations, service enrichment, and simplifying cross-border operations. 

Wallets-As-a-Service for Startups

Instead of building the infrastructure from scratch, this model enables startups to implement ready-made multicurrency wallet systems. This model is beneficial for multicurrency wallets as it solves several key issues simultaneously. 

• Accelerated Time-to-Market

Crafting a secure multicurrency wallet that supports both fiat and crypto assets from scratch is a time-consuming process as it requires coverage of the unique technical and compliance requirements. Wallet-as-a-Service (WaaS) speeds up this timeline by providing prebuilt and battle-tested integrations in a plug-and-play format. This will accelerate time-to-market as the development team will focus mainly on customization and user experience instead of the core infrastructure. 

• Reduced Development Costs and Resource Drain

WaaS minimizes the overhead  of maintaining in-house teams of specialized developers and security experts by providing a complete infrastructure. This includes key management, transaction processing, and security features for a predictable subscription fee. 

Embedded Wallets in Fintech Apps

Speaking specifically about fintech businesses, the functionality of the multicurrency wallet can be seamlessly integrated into an existing application, rather than developing a separate product from scratch of a separate product. For fintech companies it simplifies payment processing as the clients don’t have to download a separate app or create a new account for managing their fiat and crypto holdings. They can do all those actions within a platform they use. Here’s how a multicurrency wallet is a critical advancement for fintechs. 

• Comprehensive User Experience

Embedded wallets create a single, unified ecosystem for a wide range of different financial services. Depending on the integration, businesses can track crypto holdings, monitor staking rewards, and access additional features associated with investment products, all within one platform. 

• Expanding the Target Audience

Embedded wallets appeal to different audiences by providing benefits for each. Traditional fiat users are subtly introduced to cryptocurrencies by making them accessible within a familiar interface. For crypto users, an embedded wallet presents a centralized platform to manage both fiat and digital assets, all in one place. 

• Strengthened Customer Loyalty

An embedded all-in-one multicurrency wallet becomes an indispensable hub, providing clients with a single interface for managing their financial operations. By centralizing services within a single platform, it reduces friction to make users less likely to switch to a competitor’s app. 

Crypto-Enabled E-Commerce Payments

In this use case, a multicurrency wallet acts as an all-in-one payment and asset management solution beneficial for businesses that want to accept crypto as payments. Instead of using a payment gateway that will convert crypto to fiat, an embedded multicurrency wallet provides a single and convenient interface for completing the full crypto payment lifecycle. 

Benefits of Multicurrency Wallets for Crypto E-Commerce Payments

• All-In-One Product

Multicurrency wallet encompasses a wide range of crypto activities, including asset acceptance, storage, and conversion. This benefit streamlines organizational financial operations as it erases the need to manage multiple wallets for different crypto assets. 

• Protection against Fraud and Chargeback

Blockchain transactions are irreversible, which minimizes the risk of a chargeback (the common fraud activity among credit card users). This provides an additional security level for businesses by ensuring that once payments are confirmed, they won’t be reversed without a merchant’s consent. 

• Minimized Transaction Fees

Cryptocurrency transactions are much cheaper as compared to the traditional debit/credit card processing, as the latter can charge a percentage of each sale. These savings on fees are substantial for the high-volume e-commerce businesses on a long-term basis. 

Corporate Treasury and Cross-Border Settlements

A multicurrency wallet can serve as a digital treasury solution for corporations substituting the dependency on traditional banking in managing diverse asset portfolios and covering cross-border payments. Here’s how multicurrency wallets promote benefits in corporate treasury and cross-border transaction execution. 

• Optimized Cross-Border Payments

A multicurrency wallet leverages modern payment rails, involving blockchain and real-time payment systems to ensure fast interactional payment execution. This offers a strong advantage over traditional international wire transfers that are typically slow, expensive, dependent on multiple intermediary banks. 

• Centralized Asset Management

A multicurrency wallet consolidates all fiat and crypto holdings into a unified interface, which provides treasury teams with a real-time, centralized view of their entire cash position. This simplifies reconciliation and liquidity management, essential for the network of suppliers who manage multiple bank accounts in different countries.

Challenges in Multicurrency Wallet Development

Developing a multicurrency wallet is challenging due to the need to balance robust security, as well as ensure compliance with regulatory requirements, not to mention maintaining a decent scalability level and keeping UX on track. 

Ensuring Security across Multiple Blockchain Protocols

Integrating different blockchain protocols intensifies the overall attack surface as each has its unique security models and vulnerabilities. Differences in consensus mechanisms for validating transactions, key derivation paths, vulnerabilities associated with smart contracts, network architecture, all these factors require in-depth professional expertise to ensure maximum safety. 

Why Granting Security among Multiple Blockchain Protocols Is Challenging?

• Complexity of Key Management

A multicurrency wallet must properly implement different key derivation paths and cryptographic standards to make sure that the generation of keys for one network remains isolated and secure from those of another. 

• Uncoordinated Security Audits

The entire system has to be audited each time a new blockchain protocol is added to the multicurrency wallet. This is critical to prevent the integration from new vulnerabilities. This is a resource-intensive process, as there is no unified standard for security across all networks.

• Interoperability Risk

Multicurrency wallets rely on third-party bridges or protocols to perform cross-chain operations, like swapping. Those bridges are vulnerable targets for hackers’ exploits, as once compromised, businesses will incur significant financial losses.

Regulatory Compliance in Different Jurisdictions

Launching a multicurrency wallet is one of the critical challenges considering the disjointed nature of the global regulatory landscape. A multicurrency wallet must operate and comply with a web of conflicting laws across all the countries and jurisdictions where it operates. Here’s why regulatory compliance is challenging for multicurrency wallets.

• Managing Inconsistent Regulations

The lack of global standardization in the definition of crypto assets causes legal ambiguity, requiring multicurrency wallets to have technical frameworks that could adapt to different definitions and region-specific requirements. 

• Diverse AML Reporting

Although AML/KYC compliance is enforced globally, the threshold for reporting suspicious transactions can vary by jurisdiction. A multicurrency wallet’s architecture has to be sophisticated enough to implement correct compliance rules based on the user’s location and the regulatory frameworks governing cross-border activity.

Scalability and Performance

Managing scalability is another challenging aspect of multicurrency wallet development as the application has to manage the large volume of data and adapt to the growing influx of transactions without compromising speed and security. Here’s how these aspects present a challenge for multicurrency wallet development. 

Technical Bottleneck

Blockchain congestion affects overall multicurrency wallet performance. As Bitcoin has a slower transaction speed and Ethereum demands high gas fees during the peak times the wallet’s backend has to operate via robust backend to:

• Ensure High Transaction Volume Processing: the wallet has to process requests in parallel an increasing number of requests including broadcasting transactions or cross-chain interactions. 

• Manage Data from Different Protocols: as each blockchain has unique data structure and APIs the multicurrency wallet must have a sophisticated infrastructure to handle all the fragmented data effectively, preventing synchronization errors and delays. 

Performance and Reliability Issues

The absence of a strong and scalable architecture can lead to critical performance issues that will directly affect user experience. 

• Slow Synchronization: the wallet can take a long time to reflect the correct balance or transaction history during the peak network activity. 

• Transaction Delays: the network congestion can make the transaction get stuck in the network mempool that will lead to frustration and financial loss in the case of the price for asset changes. 

Balancing UX with Decentralization

Balancing UX with decentralization is a unique challenge for a multicurrency wallet because it may cause a conflict between usability and security. Decentralization operates via the appeal that the user has a complete control over their funds through private keys that place a security burden on them. 

• The UX-Driven Approach (Custodial Wallet)

Developers abstract away the complexity of private key management and seed phrases aiming to make a multicurrency wallet feel as simple in operations as a traditional bank account. The wallet provider will handle key storage and transaction signing, making it intuitive for businesses and users. Despite this the wallet becomes custodial, which means that the user surrenders control to the third party, which can create a centralized point of failure and deviating from decentralization principles. 

• The Decentralization-Driven Approach (Non-Custodial Wallet)

If the wallet adopts a decentralized approach, it provides businesses with full control over their digital assets and private keys. Nevertheless, this is a significant burden for safety because once lost, the key cannot be recovered.

The challenge lies in the fact that a perfect balance is impossible to reach. When developing a multicurrency wallet, businesses have to make a critical design decision on whether to give up on some aspects of decentralization or be less intuitive for the average user. 

Choosing the Right Development Partner

Developing a multicurrency wallet requires specialized expertise, so choosing the right fintech partner will lay the foundation for the long-term success of a secure, well-functional, and scalable solution. 

Questions to Ask a Wallet Development Company

Assessing a partner's capabilities and development approach is crucial to architect a solid foundation of multicurrency wallet development from the start till the ongoing maintenance. Here are the core questions you should ask:

Experience and Portfolio: Can you provide some examples of multicurrency wallet cases you’ve completed? What blockchain have you worked with? What token standards have you utilized (e.g., ERC-20, etc.)?

Security Practices: What are your coding standards and security protocols? How do you operate key management and storage? Have you got experience in applying multi-sig?

Tech Proficiency: What technologies and programming languages do you incorporate? (e.g., Solidity, React Native, etc.). What’s your strategy for handling growing user base and transaction influx at scale? 

Ongoing Support: Can you describe the post-launch support and upkeep you provide? How do you stay on track with the altering legal requirements and blockchain development?

Uncover Agilie’s skill in creating flexible, multi-faceted solutions.

What Sets an Expert Blockchain Dev Team Apart

The overall development partner is not just a reliable ally in architecting the multicurrency wallet app itself, but also the team who goes far beyond, demonstrating deep expertise in blockchain technology, security practices, etc. 

Profound Blockchain Expertise: development partners have in-depth understanding of the nuances associated with consensus mechanisms, how the blockchain’s network works, token standards, etc., enabling the developers to select the most appropriate tech stack and to craft a secure and scalable solution depending on the demand. 

Security-Centered Approach: by underlining the foundational importance of security, the development team focuses on tailoring the product with exceptional cryptographic techniques, expressing the dedication to crafting a secure and compliant product ecosystem. 

Focus on User Experience (UX): with user-friendliness in mind, the experts will focus on designing an intuitive and simplistic user interface to promote alleviated onboarding and asset management. 

Scalability and Flexibility: the dev team can focus on architecting a modular & scalable system to make sure it will effortlessly integrate new coins and features, without compromising the wallet’s performance. 

Checklist for Secure, Scalable Wallet Builds

Here’s a short checklist to keep structured all of the essential elements in multicurrency wallet development.

Summary

Architecting a multicurrency wallet application requires a well thought-out approach to balance functionality without compromising the app’s user experience. Since the number of challenges associated with scalability, preserving decentralization, etc., hiring a software development partner will be essential to navigate the complexities while still remaining focused on delivering a secure, intuitive, and future-proof solution.

Interested in crafting a sophisticated multicurrency wallet? Contact us in no time!