UI/UX tricks for better dApp user conversions

In today’s tech landscape, the journey doesn’t end with launching a product; it’s just the beginning. As a tech provider deeply invested in our clients’ success, we’ve witnessed a shift in priorities. Many of our longstanding Web3 partners now grapple with the challenge of retaining users and enhancing their experience in an increasingly competitive arena.

Take niches like crypto wallets or DeFi platforms, for example. These are saturated markets where standing out is crucial. It’s not just about offering a product. For our IdeaSoft team, developing UI/UX for crypto wallet is about waging a battle for user attention and loyalty. One way to achieve this is by leveraging the power of bento UI, a flexible and user-friendly interface design system that enhances the overall user experience.

Recognizing this paradigm shift, we’re pioneering a new approach: crafting UX-optimized pages that transcend traditional platforms. By focusing on enhancing user experience to improve conversion, we empower our clients to thrive in relentless competition.

Backed by a seasoned design team with years of experience, including specialists immersed in Web3 UX for over 7 years, we bring unparalleled expertise to every project. It’s not just about creating websites. It’s about shaping digital experiences that captivate and convert.

Our article will discuss how to increase user engagement with UX and top UX design tips to improve website conversions.

UX and CX are the top priorities for web3 and fintech platforms in 2024! Why?

As our partners and lasting clients navigate the ever-evolving landscape, the focus shifts to retaining users and elevating their journey within a fiercely competitive environment. Meeting this challenge demands unconventional strategies and a commitment to continuous enhancement of the customer experience within your application. Our design team has over 7 years of expetise in web3 niche and knows how to tackle these demands head-on, ensuring that your platform remains engaging and compelling amidst the intensifying competition.

Table of contents:

Understanding UX and Its Impact on dApp Users
12 Key Principles of UX Design for Conversion Optimisation
3 Practical UX Design Tips for Boosting Website Conversions
How to Measure the Impact of UX on Conversion Rate
Summary

Understanding UX and Its Impact on dApp Users

UX design is the process of developing products (websites, apps, programs) that are useful, easy to use, and pleasant to interact with. In other words, it is the design of systems that should lead the user from the starting point to the endpoint by the shortest route and without difficulty.

UX design means the intersection of programming, design, and testing. The scope of work may vary depending on the specifics of the Web3 solution, but they often include the following:

User research
Character creation
Developing wireframes and interactive prototypes
Design testing

Conversion optimization with dapp development, UX must advocate for users and put their needs at the center of all design and development efforts.

12 Key Principles of UX Design for Conversion Optimisation

Drawing from the expertise of our Senior UI/UX designer, Anastasiia Lisova, let’s delve into the 12 key principles of Web3 product UX:

Text contrast for accessibility. Ensuring optimal text contrast is not just about aesthetics but also about accessibility. Anastasiia utilizes tools like A11y Color Contrast Checker to guarantee readability for all users. At the same time, the main text size should be at least 16px for desktop and 14px for mobile screens.
Minimalism in design. Every element on the screen should serve a purpose. Eliminate unnecessary distractions to avoid clutter. By keeping the interface clean, users can focus on what truly matters, enhancing their overall experience.
Familiar patterns for seamless interaction. Leverage existing user patterns to reduce cognitive load. Users can effortlessly navigate through the Web3 interface by incorporating familiar design elements, leading to higher engagement and conversion rates.
Strategic color usage. Limit the color palette to one accent color for primary actions and one secondary color. Avoid using pure black (#00000) and opt for shades to maintain visual harmony. This not only enhances aesthetics but also guides users towards key interactions.
Deliberate button design. Design destructive buttons such as cancel, exit, or delete with caution. Require users to click on them deliberately to prevent accidental actions. Incorporate additional confirmation prompts before executing destructive actions to prioritize user control and safety.
Typography for clarity. Choose simple and concise fonts like Nunito Sans, DM Sans, Inter, or Source Sans for the main text. Clarity in typography enhances readability, ensuring that users can effortlessly consume content.
Error handling with guidance. When errors occur, provide users with actionable solutions rather than just displaying generic error messages. Offer clear guidance on how to rectify the issue, fostering a sense of empowerment and reducing user frustration.
Multi-sensory information design. Avoid relying solely on color to convey information, as it excludes users with color blindness. Incorporate alternative cues, such as icons or textual indicators, to ensure inclusivity and accessibility for all users.
Spacing for visual hierarchy. Maintain adequate spacing between elements to prevent clutter and enhance visual hierarchy. Well-defined spacing creates breathing room, improving overall readability and comprehension.
Feedback through loading states. Implement loading states to signify system responsiveness, especially for actions with delayed responses. Visual feedback assures users that their interactions are acknowledged, enhancing their sense of control and understanding.
Consistency in iconography. Maintain uniformity in iconography by using the same line thickness across all icons. Consistency fosters familiarity, making it easier for users to interpret and interact with interface elements.
Progress indicators for guidance. Incorporate progress bars for actions that involve multiple steps. Progress indicators offer users transparency regarding their current position in the process, reducing ambiguity and improving task completion rates.

In contrast, such approaches as thin fonts, large headers at the top of the page, low text contrast, auto-scrolling, and carousel slider on the home page may become the great disadvantage for your platform or dApp UX.
Anastasiia Lisova, Senior UI/UX Designer at IdeaSoft

Use these UX design hacks to improve website conversions. They have helped our team build dozens of Web3 products that drive the best user journey for our clients.

3 Practical UX Design Tips for Boosting Website Conversions

Here are 3 practical tips to improve conversion rate with UX design.

Use a clear CTA button

A call to action (CTA) is a button used on a website to motivate users to take a specific action. The most common and effective CTAs are: “Download a trial”, “Sign up for updates”, “Download an app”, “Book a consultation”, and many others.

Using a clear and attractive call to action button improves the user’s interaction with the website. This attribute should be located on every page of the website. Statistics confirm that resources with clear CTAs have higher conversion rates.

Besides, having clear wording for such a call to action significantly improves the overall user interaction. But do not forget, the button will work only if it is located in a prominent place on the page and attracts his or her attention with its design and content. Therefore, creating a new website or redesigning the current site, take into account the following points:

Varying the color of the CTA plays a significant role in its effectiveness. Use colors for this button that contrast with the color scheme of the entire web page.
Orient the text of the CTA to specific actions. Avoid using passive verbs. The text should be subtle and unobtrusive but active enough to encourage the user to perform the proposed action.
Content of the CTA should be as concise as possible – no more than 5 words.

Thus, in website UX design, a clear and visible call to action is a prerequisite for effective interaction between the site and the user. If you need a reliable UX/UI partner, we at IdeaSoft know how to design Web3 app as well as have experience in redesigning UX for conversion optimization.

Eliminate your 404 errors

If, as a result of the search, the visitor gets an error (in most cases, it is a 404 error), he or she simply goes to another site in search of a faster service. In other words, you lose a potential user. How to avoid this:

First, find out for which queries 404 errors are displayed and fix them as soon as possible.
Instead of letting your site go to the standard “Error 404: page cannot be displayed” page, customize error messages so that users find them friendly and attractive.
Use engaging images and create a pleasant background on the error page to reduce annoyance and smooth out the user’s inconvenience.
Try to take advantage of this situation. Based on your website’s specifics, offer the visitor the option to go to the main page, use the search function, read the promotions, or just entertain him or her.

Unfortunately, it is almost impossible to completely eliminate error messages. Still, you can turn this drawback in your favor, and timely identification and elimination of such defects will bring your resource site to the ideal UX.

Use authentic images

Authentic design is about creating something unique to your brand, avoiding replication or imitation of competitors. It’s crucial that your design not only reflects your brand’s unique selling proposition (USP) but also resonates with your target audience. This approach requires a foundation in thorough user research and understanding of your audience.

By aligning your design with your USP and audience preferences, it becomes a powerful tool in attracting and engaging customers from the very first click. This strategic approach ensures that your design acts as a compelling call-to-action, enticing visitors and driving website conversions.

How to Measure the Impact of UX on Conversion Rate

IdeaSoft design team recommends to use a structured approach to measure the impact of UX on conversion rate:

Analytics tools. Utilize analytics tools like Google Analytics, Hotjar, or Mixpanel to track user behavior on your platform or dApp. Pay attention to metrics such as page views, time on page, and user flow to identify areas of improvement.
A/B testing. Implement A/B tests to compare different versions of your UX design to improve website conversions. Test variations in layout, color schemes, call-to-action (CTA) placement, and other design elements.
Heatmaps. Use heatmapping tools like Plerdy to visualize where users click, scroll, or hover on your website. Heatmaps provide valuable insights into user engagement and can highlight areas for UX optimization.
Benchmarking. Compare your conversion rate and UX metrics against industry benchmarks or competitors. This provides context and helps set realistic goals for improvement.
Iterative improvement. Continuously iterate on your UX design based on the insights gathered from the above methods. Monitor how these changes impact conversion rate over time and adjust your strategy accordingly.

Summary

Remember, the key lies in continuous testing, analysis, and adaptation to ensure that the website evolves alongside user needs and preferences. With these UX conversion optimisation tips in mind, you can create seamless digital experiences that drive higher conversions and foster lasting customer satisfaction and loyalty.

What Is AMM and How AMM-based DEX Works?

DEXs have become a key element of the decentralized financial system (DeFi). As of April 2024, more than 20 DEXs have over $100,000 in daily trading volume. DEX eliminates the middleman and allows users to trade directly from their wallet in a non-custodial manner. However, DEXs also offer unique opportunities in terms of trade execution models.

This article will discuss how to create a decentralized exchange with AMM and best practices for AMM DEX development. Read on if you want to launch DeFi exchange platform.

Looking for your DEX to stand out?

In order to outperform the current solutions, we recommend to concentrate on the thorough examination of available DEXes and create a unique list of features for your exchange to make it stand out! The market has its cometition now, and you need to make sure your product is the best the users can get at the moment.

At IdeaSoft, we do not work as the only tech provder for your solutions, we also help you to analyze the market, perform a careful analysis and introduce a product oriented approach, because we are interested in your startup to succeed! Contact us to get a detalied overview of the current market state in terms of AMM-based solution & consultation regarding your future product.

Table of contents:

Which are the popular AMMs?
The Basics of Decentralized Exchanges (DEXs)
How AMM-based DEXs Work
Advantages of AMM-based DEXs in comparison to CEX
How to create AMM DEX?
Challenges and Risks with AMM-based DEXs
Summary

Which are the popular AMMs?

Here are popular AMMs with distinct mechanisms:

Uniswap. Uniswap has indeed been a pioneering force in the automated market maker (AMM) space, constantly evolving with innovations like Uniswap v4.
Balancer. Balancer is an automated portfolio manager and liquidity provider. Unlike Uniswap’s constant product formula, Balancer allows users to create pools with customized weights for each asset, enabling various trading strategies and fee structures.
Curve Finance. Curve Finance is optimized for stablecoin trading, focusing on low slippage and low fees for trading assets with similar values. It utilizes specialized bonding curves to facilitate efficient stablecoin swaps.
Pancak eSwap. Operating on the Binance Smart Chain (BSC), PancakeSwap offers lower fees and faster transactions than Ethereum-based platforms. It also features innovative AMM mechanisms and incorporates yield farming and lottery systems.
Bancor Protocol. Bancor Protocol is an automated liquidity protocol that enables decentralized exchange and automated liquidity provision on the Ethereum blockchain. It was one of the earliest projects to introduce the concept of AMM.

These AMMs have contributed to the decentralized finance (DeFi) ecosystem by offering diverse mechanisms and features that cater to different trading needs and preferences.

The Basics of Decentralized Exchanges (DEXs)

Decentralized exchange (DEX) is a key component of DeFi. Unlike centralized solutions (CEX), DEXs do not verify users, store their funds, or control transactions.

There are two types of DEX: AMM-based and OrderBook-based. We will look at the AMM-based DEXs.

Due to their simplicity and convenience, DEXs based on automated market makers (AMM) have occupied a noticeable niche in the DeFi sphere. This crypto exchange type automatically evaluates the asset’s value using a mathematical formula.

On the technical side, this is realized through a protocol that works using a group of smart contracts that regulate the token exchange process between users. Interacting with AMM DEX implies using the crypto exchanger’s smart contracts that automatically process token exchange transactions.

How AMM-based DEXs Work

Let’s understand how decentralized exchange with AMM works:

AMM DEX is based on smart contracts and algorithms to enable trading without the need for centralized participation.
Liquidity pool consists of two or more tokens. Each token has a certain amount of seed funding. Investors (liquidity providers) are free to invest in this pool.
Prices in the liquidity pool on AMM are determined automatically based on the ratio of the number of tokens in the pool.
Users can trade tokens from the pool. Because AMM does not rely on a centralized party, orders are executed immediately.
Commissions are charged to trading users to support AMM. A share of the commissions is allocated to pool participants according to their contribution. This incentivizes the supply of liquidity to the pool.
Pool can be automatically rebalanced by adding or removing tokens. Smart contracts are responsible for this.

In this way, AMM-driven decentralized exchange enables trading without having to trust a centralized party and provides tools for liquidity support and automatic pricing.

Advantages of AMM-based DEXs in comparison to CEX

Any AMM-based crypto exchange has several advantages over centralized ones. First, they provide a high level of security, as users control the funds themselves and do not need to trust a centralized structure. Second, they have transparency and openness. Finally, they can be accessed anywhere in the world and without verification. Here’s a table comparing the advantages of DeFi DEX with AMM vs CEXs.

	AMM-based DEXs	Centralized Exchanges (CEXs)
Decentralization	Operate on decentralized networks, no single controlling entity.	Centralized control by exchange operators.
Security	More secure against hacks and cyber attacks, users have custody of funds.	Centralized control poses security risks, susceptible to large-scale breaches.
Privacy	Higher degree of privacy, minimal identity verification requirements.	Often require extensive identity verification, collect personal information.
Global Access	Accessible worldwide, regardless of geographical location or regulations.	Access may be restricted based on jurisdictional regulations.
No Listing Requirements	Anyone can create liquidity pools for any pair of tokens.	Listing criteria may exclude certain tokens.
Lower Fees	Typically lower transaction fees (especially talking about Layer-2 or BNB chain for example).	Higher fees due to operational costs and intermediaries.
Continuous Liquidity	Liquidity provided by users, ensuring continuous trading availability.	Liquidity may be limited for certain assets or during high volatility.
Community Governance	Operate under decentralized governance models, allowing token holder participation.	Centralized decision-making by exchange operators.
Interoperability	Facilitate cross-chain trading, promoting interoperability within the blockchain ecosystem.	Typically limited to trading within the exchange’s supported blockchain network.

How to create AMM DEX?

AMM DEX development involves several steps, requiring expertise in blockchain development, smart contract programming, and an understanding of liquidity pools and market dynamics. Here’s a simplified overview of how to create AMM DEX:

Define requirements & conduct a thorough discovery phase. Determine the scope and functionality of your AMM DEX. Consider factors like supported tokens, trading pairs, fees, liquidity incentives, user interface, security measures, etc.
Choose a blockchain platform. Select a suitable blockchain platform for your DEX. Ethereum is a popular choice due to its robust smart contract capabilities and established ecosystem, but other platforms like Binance Smart Chain, Solana, or Polkadot need to be considered as well. The ecosystems of those networks have grown drastically during the past few years, and now make a great alternative to the old good Ethereum. Also, we recommend looking into layer-2 solutions such as Optimism, Arbitrum, Base or Plasma NEXT to develop your DEX. The ecosystem of those is not that robust yet, so it gives you a chance to stand out with your unique DEX solution within one of those particular chains.
Smart contract development. Develop smart contracts that implement the core functionalities of your AMM DEX. This includes contracts for creating liquidity pools, handling token swaps, calculating fees, managing user balances, etc.
Liquidity pool management. Implement the mechanism for users to add and withdraw liquidity to/from the liquidity pools. This involves creating pairs of tokens and ensuring proper reserve management to facilitate trading.
Price calculation algorithm. Design the algorithm that determines the price of assets in the liquidity pools. The most common approach is the constant product formula (used by Uniswap), but other formulas like constant sum or constant product with fees can also be considered.
User interface development. Build a user-friendly interface for interacting with your DEX. This can be a web interface, a mobile app, or both. Ensure that users can easily swap tokens, provide liquidity, view trading pairs, and monitor their balances.
Security audits. Conduct thorough security audits of your smart contracts and infrastructure to identify and mitigate potential vulnerabilities. Security is paramount in DeFi exchange applications due to the significant financial risks involved.

Remember that to develop AMM DEX solutions, you require technical expertise and a deep understanding of decentralized finance, market dynamics, and user behavior. To create your own DEX that will outperform Uniswap, you must ensure careful planning, execution, and ongoing maintenance.

Challenges and Risks with AMM-based DEXs

Any decentralized finance exchange with AMM comes with several challenges and risks.

Impermanent Loss for Liquidity Providers

One of the primary challenges liquidity providers face on AMM-based DEXs is impermanent loss. Impermanent loss occurs when the price of assets in the liquidity pool diverges significantly from the external market price. Liquidity providers may experience losses when withdrawing their funds compared to simply holding the assets. This can discourage liquidity provision, especially during periods of high volatility.

Issues of Slippage in High Volatility Periods

AMM-based DEXs may experience significant slippage during periods of high volatility, impacting traders’ ability to execute trades at the expected price. This can lead to undesirable outcomes, such as unexpected losses for traders or failed transactions, reducing user satisfaction and trust in the platform. However, it is worth mentioning that the modern AMM mechanisms are becoming more resistant to slippage issues. The protocols are always working on enhancing their swap mechanics, and so does our team for our clients.

Smart Contract Vulnerabilities and Security Concerns

AMM-based DEXs rely on smart contracts to facilitate trading and liquidity provision. However, smart contracts are vulnerable to bugs, exploits, and security breaches. Malicious actors can exploit vulnerabilities in smart contracts to manipulate prices, drain liquidity pools, or steal users’ funds. Security audits and ongoing monitoring are crucial to mitigate these risks, but they cannot eliminate them entirely.

Regulatory Uncertainties Surrounding DEXs and AMMs

The regulatory landscape surrounding decentralized exchanges and AMMs is still evolving, creating uncertainty for both platform operators and users. Regulatory bodies may impose restrictions or require compliance measures, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, which could impact the decentralized nature of these platforms. Additionally, regulatory crackdowns or bans on DEXs in certain jurisdictions can pose legal risks for users and operators alike.

Summary

Automated market makers are one of the drivers behind the development of the DeFi space. Allowing users to create efficient markets by providing liquidity to the pool, DEXs and AMMs have significantly influenced the popularity of cryptocurrency exchanges. These exchanges allow users to directly interact with a smart contract in a secure space (with no contact with exchange participants), operate 24/7, and require no support.

Users are familiar with the AMM DeFi technology from solutions such as Uniswap, Curve, and PancakeSwap. At this stage, any AMM DEX solution features a spectacular design combined with functional limitations.

In fact, AMM crypto exchanges are still in the initial era of development. Much work must be done to catch up with CEXs that support margin trading and limit orders. Protocol improvements that minimize impermanent losses and improve DEX wallet integration are also expected. Restaking can further enhance AMM platforms by offering additional incentives and benefits for liquidity providers.

ERC-404 Standard Explained

The latest experimental token standard, ERC-404, has the opportunity to solve NFT challenges such as illiquidity and price volatility. ERC-404, which combines the ERC-20 and ERC-721 token standards in Ethereum, allows multiple wallets to directly own a portion of a single NFT and use that portion for trading or borrowing. We promised an ERC-404 guide – we did it!

This article will discuss ERC-404 token development on Ethereum, how ERC-404 tokens work, and successful ERC-404 projects.

Want to create a new disruptive product or integrate ERC-404 into your current solution?

ERC-404 combines the ERC-20 and ERC-721 token standards in Ethereum, allowing multiple wallets to directly own a portion of a single NFT. ERC-404 can be applied in asset tokenization, DeFi, gaming and NFTs, and supply chain management. Want to talk to an expert? Schedule a call with us and we will carefully analyze your case and collect the requirements for your project!

Table of Contents:

Unveiling ERC-404: Disrupting the Future
Key Features and Objectives
Potential Impacts of ERC-404 on the Current Landscape
Risks of ERC-404
Use Cases and Applications
DN-404: Market Reaction to ERC-404
Summary

Unveiling ERC-404: Disrupting the Future

First launched in February 2024, ERC-404 is an experimental token standard developed by the Pandora team (it is important to note that as of March 18, 2024, ERC-404 has not yet been included in the standard Ethereum EIP). It combines the liquidity of the ERC-20 tokens with the uniqueness and collectability of the ERC-721 tokens.

It allows NFTs to be split into smaller segments, and it can potentially address some of the market’s major challenges, such as illiquidity and price volatility.

Key Features and Objectives

Take a close look at the features of ERC-404 tokens:

Divided ownership. With the ERC-404 token, multiple individuals can own portions of an NFT (ERC-721) through fractional shares. This allows buying and selling fractions of an NFT rather than the entire asset.
Inherent fractionalization. Unlike existing approaches, fractionalization occurs seamlessly within the token standard itself through minting and burning mechanisms. Users are spared the need for additional platforms or intermediaries.
Boosted liquidity. Fractionalization broadens the NFT market’s appeal and enhances liquidity, potentially rendering these assets more accessible and liquid.
Dynamic exchange. Users can freely exchange fractions of an NFT, akin to fungible tokens, fostering a more dynamic and interactive marketplace.

ERC-404 is a new token standard that is like a point card, exchanging points (fungible tokens) for physical goods (NFT). This innovation not only expands the possibilities and imagination of digital assets but also combines the mobility of ERC-20 tokens with the uniqueness and collectability of ERC-721 tokens.

Thanks to the innovative potential of this token standard, two leading trading platforms, Coin and OKX Web3 Wallet, have also launched marketplaces that support the trading of ERC-404 tokens. In addition to $Pandora, other tokens based on the ERC-404 concept, such as $DEFROGS, $RUG, $ANON, and $CRYSTAL, are already available for trading.

Potential Impacts of ERC-404 on the Current Landscape

The ERC-404 features immense potential in various industries, with promising applications unfolding across the following lucrative avenues:

Asset tokenization. The burgeoning trend of Real World Asset tokenization within the crypto and blockchain spheres stands to benefit significantly from this standard. By enabling fractional ownership of assets such as real estate, art, equipment, and luxury items, ERC-404 could democratize entry into these sectors for a vast number of retail investors while injecting liquidity into traditionally illiquid markets.
DeFi. The utilization of the ERC-404 standard holds promise for DeFi applications like lending, borrowing, and yield farming. This standard could introduce novel asset types as collateral, while the fractionalization of assets empowers participants to unlock value from portfolios through sales or lending, thereby generating additional income.
Gaming and NFTs. In the gaming and NFT realms, the ERC-404 token on Ethereum shines with its potential to revolutionize asset ownership, transferability, and interoperability. Developers can leverage this standard to fractionalize in-game assets, paving the way for innovative gameplay mechanics and streamlined virtual economies. Additionally, a broader user base can engage in ownership and trading within the NFT sector, fostering greater inclusivity.
Supply chain management. ERC-404 offers solutions for transparency, verification, and efficiency in supply chain management applications. This standard can enhance traceability and authenticity by simplifying the issuance of unique IDs to various supplies. Fractionalized NFT tethering to a single original enables seamless product tracing, while burn mechanics ensure efficient storage of perishables, thereby optimizing supply chain operations.

So, the ERC-404 token standard on Ethereum has a big influence on the whole industry.

Risks of ERC-404

The core technological innovation of ERC-404 on Ethereum is that it allows fungible tokens and NFTs to coexist under the same framework and realizes seamless conversion between them. However, the ERC-404 token standard still has the following risks:

Accidental burning of NFTs due to fungible tokens accuracy problems. Due to fungible token accuracy problems, an NFT may be burned even if the number of fungible tokens is only slightly less than a whole number (e.g., reduced from 3 to 2.9999).
Increased gas consumption. Because of the complexity of the ERC-404 contract, gas consumption increases. Transaction costs are also increased when dealing with fungible tokens and NFT transfer and burn mechanisms due to the need for more computation and storage operations.
Limitations of the whitelisting mechanism. Although the whitelisting mechanism allows some pairs/routers to process fungible token transactions without frequent NFT processing, it may limit the system’s flexibility and openness. Once ownership is revoked, the usability and security of the system may be compromised if the whitelisting mechanism is not subsequently updated. This may result in the loss of control over the contract. It can even become opaque, increasing the risk of contract management.

Nevertheless, there are many ERC-404 projects on the market today.

Use Cases and Applications

Here are 5 ERC-404 projects you must be aware of today.

DeFrogs ($DEFROGS)

Leading the charge in the ERC-404 projects, DeFrogs introduces a dual-asset realm comprising 10,000 tokens and NFTs. Acquiring DEFROGS tokens on DEXs automatically triggers the minting of a corresponding DeFrogs NFT, merging the thrill of NFT collections with the dynamic nature of trading fractional token ownerships.

With the standard’s adaptability shining through, holders can strategically maneuver between tokens and NFTs across platforms like Uniswap and OpenSea to optimize their investment returns.

Rug ($RUG)

The rebranded collection Penguin NFT on Solana breathes new life into its artwork through ERC-404 compliance. This innovative technology enables the token-NFT duality to be traded on various marketplaces or DEXs. Named in homage to its origins, $RUG symbolizes a community-driven second chance.

Froggy Friends ($TADPOLE)

The well-established Froggy Friends brand has already garnered over 20 million GIF views on Giphy, leveraging its charming amphibian IP. Expanding their business model, they now focus on product placement marketing through viral GIFs.

$TADPOLE serves as the project’s official ERC-404 collection, unlocking new avenues for licensing opportunities.

Crystal ($CRYSTAL)

Crystal swiftly emerges as the premier ERC-404 project on Arbitrum, fostering a vibrant community within its category. Building on this momentum, Scattering.io, the brains behind Crystal, aims to collaborate with ambitious developers to further integrate 404 standards across Arbitrum. Their vision revolves around establishing Scattering as the leading ERC-404 marketplace on the network, with $Crystal at its nucleus.

By supporting projects planning Arbitrum launches, Scattering seeks to empower the next wave of high-potential tokens to fully realize their potential.

Bakery404 ($BAKE)

Bakery404 stands as the pioneering ERC-404 Factory, revolutionizing the token creation process. It’s a platform where custom tokens come to life swiftly without the need for any coding expertise. Picture deploying a unique token on Ethereum Mainnet and soon on Base and Arbitrum in the time it takes to savor your morning coffee. Bakery404 ensures that the process is not only seamless but also an enjoyable experience from start to finish.

DN-404: Market Reaction to ERC-404

Recognizing the potential problems with ERC-404 coins, the Ethereum developers quickly introduced DN-404 to address some of the core issues faced, particularly in the areas of efficiency and transaction fees:

Improving efficiency and reducing transaction costs. DN-404 is expected to reduce the impact on transaction costs by 20% by optimizing the structure and operation of smart contracts. This is achieved by splitting the original attempt in ERC-404 to merge fungible and non-fungible tokens into a single contract into two separate contracts – a “base” contract based on ERC-20 and a “mirror” contract based on ERC- 721.
Simplifying smart contract complexity. By separating the ERC-20 and ERC-721 functions into two separate contracts, DN-404 reduces the complexity of smart contracts. This not only makes the contracts easier to understand and audit but also potentially reduces the risk of vulnerabilities introduced by complexity.
Compatibility with existing standards. The design of DN-404 allows “mirrored” ERC-721 contracts to be handled like any standard ERC-721 token, ensuring compatibility with existing protocols that support ERC-721. This design supports broader ecosystem integration without the need to modify existing infrastructure to accommodate the new token standard.
Seamless integration process. As the underlying ERC-20 tokens are transferred, the corresponding mirror NFTs are automatically minted or destroyed, providing a smooth and seamless user experience while maintaining a tight connection between the fungible tokens and the NFTs.
Addressing extreme circumstances. DN-404 is intended to address the problems that ERC-404 may encounter under certain edge conditions, such as the problem that a reorganized NFT may be in a different state than its original state, by making this possible through clearer contractual logic and operations.

So, DN-404 is an improved ERC-404 implementation that can get a strong position in the market.

Summary

NFT ERC-404 is similar to the hyped NUTS based on the Tiny SPL token standard on Solana. Although still in the experimental stage, it does break through the framework of “tokens” and “NFTs”, gives NFTs native financial properties, and allows them to be seamlessly integrated into the DeFi protocol. This makes it easy to realize financial applications such as borrowing, collateralization, leverage, and so on.

Projects such as Pandora have demonstrated the utility and popularity of this hybrid standard. Regardless of whether ERC-404 eventually becomes the mainstream token standard in the Ethereum market, ERC-404 provides an innovative way of thinking, bringing more flexibility and possibilities to crypto assets.

How to Build Farcaster Frames and Why Do You Need It in Your dApp?

The seemingly simple Frames feature within Farcaster has been met with a lot of love and optimism from the crypto industry. ElectricCapital’s founder stated that when a new social app breaks through on a new platform, it feeds into a tenfold growth in the space. Now, when the crypto infrastructure is nearly complete, A16Z’s investors are saying that the power of Farcaster and Frames is akin to the Ajax/open web impact of Web2 in 2005.

The @farcaster_xyz and frames energy is how 2005 “web 2.0”/ajax/open web energy felt like.
— Sriram Krishnan – sriramk.eth (@sriramk) January 29, 2024

Organizations are also very enthusiastic about this new idea. ETHGlobal already held the Farcaster Frames hackathon. Frames kicked off DeSoc’s new wave of social dApp innovation. Based on the Frame, developers can embed their own application dApp into the Farcaster client to enable users to realize a variety of interactive experiences based on the post. Developers in the Farcaster community are proud to call themselves Framers. Hundreds of Framers have already developed a lot of wonderful projects with Frames.

In this article, we will discuss building decentralized social apps and how you can build Farcaster Frames on your own!

IdeaSoft blockchain team always keeps track of the innovative approaches and technology advancements in the web3 niche!

Our blockchain department consists of 20+ mid to senior specialists who have experience working with a wide range of web3 custom products. From NFTs and tokenization to in-depth infrastructure building our team will correctly draw up the requirements for your project. Let’s schedule a free consultation to discuss this in more detail!

Table of contents:

What is Farcaster?
Understanding Farcaster Frames
Components and Tools for Building Farcaster Frames
Step-by-Step Guide: How to Build Farcaster Frames
Why Farcaster Frames are Essential for Your dApp
Use Cases and Examples
Summary

What is Farcaster?

Farcaster app is a decentralized social network based on Ethereum. It belongs to the same class of protocol as Nostr.

The Farcaster protocol is divided into 3 layers. The first layer is the chain layer (Ethereum). Users must register their accounts in the chain layer, which is only responsible for account registration and query functions.

The second layer is the data layer (Delta Graph). It consists of many nodes (Hubs). Users’ information is stored in the Hubs, which then synchronize the data with each other.

The third layer is the application layer, where users can develop their own mobile or desktop applications. It should be noted that this is not only the terminal application but also another server-side application. This application can cache all the data in the hub and then realize the search, indexing, and other more advanced functions. This would make the dApps built on Farcaster more similar to current social apps.

Understanding Farcaster Frames

The project was not popular at the start but is now gaining momentum thanks to the launch of Farcaster Frames. This new feature allows you to turn any publication into an interactive experience.

Like regular social media posts, framesJs displays content in static images or videos. Still, the Farcaster Frames feature also allows for interactive elements in the form of buttons, allowing posts to dynamically respond to user actions.

Farcaster Frames also protects users from the risks associated with interacting with third-party apps and sites, such as wallet draining and spoofing. Frames transform Farcaster exponentially.

Components and Tools for Building Farcaster Frames

To be very honest with you, a notice developer can hardly cope with Farcaster dApp development. For this purpose, you require:

Previous programming experience with JavaScript or TypeScript
An Ethereum node endpoint with the Token API enabled
Node.js and pnpm installed
FramesJs installed
Neynar API Key
An account on Farcaster
A code editor (e.g., VSCode, Atom)

Farcaster API plays a big role in building Frames for Farcaster. So, it must also be carefully researched.

Step-by-Step Guide: How to Build Farcaster Frames

It takes 10 steps to build Farcaster Frame. Here is a step-by-step guide from IdeaSoft blockchain department devs for building Frames for Farcaster:

Get DFX. It serves as the command-line interface for the IC SDK, a development kit crafted by DFINITY to manage ICP canister smart contracts.
Get Azle and initialize a new Azle project. It serves as a library for crafting ICP canister smart contracts in Typescript and Javascript. Specifically, Azle functions as a Canister Development Kit (CDK) or an interface utilized by the IC SDK, furnishing Typescript and Javascript with all the necessary capabilities to create and administer canister smart contracts.
Develop Farcaster Frame and configure Express Server in src/index.ts. A Frame is established with Farcaster-specific OpenGraph tags. Azle offers a Server method that enables the passing of a callback function required to return a node httpServer instance.
Provide the Farcaster Frame for the REST API call and update src/index.ts with the complete code. Here, you must move your Farcaster Frame to the REST API and then update src/index.ts with the new code.
Deploy the application. Deploy your frame locally to test the application. You will see a success message in the shell if everything is OK. Then, deploy on the mainnet or production to have a functional application.
Preview the Farcaster Frame using their Frame Validator. You can preview the Farcaster Frame using their Frame Validator tool. Please note that only mainnet production endpoints are supported. Local endpoints are not compatible. Input the endpoint received and then click Load.

Now, you know how to create Farcaster Frame in 6 steps. Let`s move to why you need Frames for building decentralized social apps of a new generation.

Why Farcaster Frames are Essential for Your dApp

With Farcaster Frames, we encounter a novel Web 3 fundamental that eludes the capabilities of Web 2. We mean a simple method to operate application X while a user remains within application Y, requiring minimal coordination between the two. This feat surpasses even Facebook’s capabilities at the pinnacle of its popularity.

We highlight 3 reasons why Farcaster Frames are essential for dApps.

Enhanced Embeds

Frame serves as an interactive embed, akin to envisioning Google crafting a Frame for Google Slides. Instead of merely displaying an image preview of the first slide when linking to a Google Slides presentation, the Frame showcases the image preview along with the buttons below. These buttons facilitate navigation forward and backward through the slides, allowing users to view the entire slideshow directly within the Frame. This concept embodies a relatively straightforward Frame implementation.

Integrated Embeds

Now, let’s delve deeper into the concept. Consider OpenSea’s functionality where users can “fave” any NFT to add it to their favorites. If OpenSea adopted Frames, whenever a user shares an NFT page from OpenSea on the feed, a button beneath the image could enable adding it as a favorite.

Here’s how it would function:

Upon receiving the signed message, the OpenSea backend deciphers it to retrieve the ID of the user who clicked the button and then queries the associated address.
Given that not all Farcaster users possess a wallet address linked to their accounts, OpenSea’s backend could determine the course of action if no wallet address is found or display a message within the Frame indicating the absence of a wallet for that user.
If a user does have a wallet address, OpenSea could seamlessly add the NFT to the user’s favorites, enabling users to “fave” NFTs without navigating away from the feed.

So, businesses can easily opt for hosting Frames on their product and let users interact with them directly.

Use Cases and Examples

Need Farcaster Frames example? Here are 10 at once! Click on a link to move to them:

Creating Farcaster Frame is now trendy. You can find different Garcaster Frames on your own with minimal effort.

Summary

Decentralized social has always been a widely viewed track, whether it is the underlying data infrastructure, protocols, or application layer. Multiple projects have made attempts. We believe that combining decentralized finance and social will bring great changes and have a broad development prospect. Although Frames and many social applications are still in the early stages, we will keep a high interest in this direction.

What is Restaking in Crypto?

In April 2023, Ethereum developers activated the Shapella update, which included several changes for the consensus and execution layers. The most important one was the ability to withdraw ETH from the Beacon Chain deposit contract.

This hard fork created the necessary conditions for the emergence of new directions and the realization of projects, the launch of which was previously impossible due to the restrictions in the network. Staking technology development was one of these directions.

In this article, we will explain restaking opportunities and discuss types of restaking, the potential impact of restaking on the Ethereum market along with how restaking works.

Want to know more about the emerging concept of restaking in DeFi protocols?

Let us help you figure it out! Essentially, restaking protocols provide a set of smart contracts that allow tokens to be redirected and staked again to secure applications outside of the underlying blockchain. Eager to know more tech details? Then read our carefully prepared article or schedule a meeting with our tech team to understand if a crypto restaking feature is needed for your product!

Table of Contents:

Understanding Restaking Concept
What Problems Is Restaking Trying to Solve?
Mechanics of Restaking
Benefits of Restaking
The Most Popular Restaking Protocols
Case Study: Dollet Wallet and Released Restaking Feature
Summary

Understanding Restaking Concept

Before we dive into restaking in crypto, let’s remind you what staking is.

Staking supports the operation of a blockchain by locking cryptocurrency. Users get remuneration for staking their crypto. Staking is possible for cryptocurrencies functioning on a Proof-of-Stake (PoS) protocol.

On the other hand, crypto restaking allows users to allocate their assets multiple times on the main blockchain as well as on additional protocols. For example, EigenLayer allows Ethereum stakers to use their staked $ETH to secure other networks/protocols as well.

Also, users can choose which additional networks/protocols they want to validate with their current staked $ETH and earn additional revenue from it. In return, they agree to grant EigenLayer additional rights to reduce their $ETH stakes (on top of the rights to reduce the underlying Ethereum staking contract).

The concept of crypto restaking has much in common with merge mining. It involves simultaneously mining two or more cryptocurrencies without reducing the overall mining performance. The model essentially allows the same proof-of-work to be accepted as security guarantees by multiple networks with compatible PoW-based consensus algorithms. When applied to PoS-based blockchains, the concept involves re-purposing capital that is already in staking for similar purposes.

restaking protocols, types of restaking, restaking in crypto — *Image source: Coinmarketcap Restaking Tokens Chart*

The 2024 crypto restaking market is rapidly transforming from a nascent trend to an innovative reality. As of mid-March, the restaking market cap has reached almost $40 billion. Ethereum restaking dominates the market.

Except for EigenLayer, other projects are also working on restaking or related projects in multiple chains. Some of them are already in operation, and others are coming soon. These include projects like Picasso (Solana restaking) and Babylon (Bitcoin restaking), among others.

Basically, restaking allows ETH validators to use their stakes to validate other networks, for example, via the EigenLayer. This increases the rewards for the validators but also increases the risks.

How Does Restaking Differ From Regular Staking?

Restaking differs from regular staking by involving the process of staking an asset again after the initial staking period, offering the opportunity for recurring engagement and potentially increasing rewards through participation in multiple staking programs or platforms.

Unlike regular staking, restaking enhances the utility of the staked asset by expanding its functionality across various networks, albeit with increased risks associated with managing multiple staking arrangements.
Rostyslav Bortman, Head of Blockchain Department

What Problems Is Restaking Trying to Solve?

Restaking in crypto aims to solve the problem of blockchain security. Restaking enables staked ETH to be used as cryptoeconomic security for protocols other than Ethereum in exchange for protocol fees and rewards.

For example, creating a new PoS network, such as Ethereum or BNB Chain, requires significant capital expenditure. Let’s say a project issues a token to fulfill this security function. They would then have to convince ecosystem participants to assume the price risk of hosting this new token, as well as the opportunity cost over a simple $ETH stake.

EigenLayer is an awesome example for discussion. It introduces 2 new ideas: unified security through restaking and free market management.

Unified security through restaking

EigenLayer provides unified security by allowing new modules to be protected by restaking $ETH rather than their own tokens:

In particular, after restakers lock their LSTs or their own $ETH with validators, validators can then agree to protect any module they choose.
Validators set their withdrawal credentials in the EigenLayer smart contract so they can be automatically removed if they misbehave.
In turn, modules pay a commission for security and validation services that are received by validators and restakers.

The result is the combination of Ethereum’s powerful crypto-economic security with other protocols built on top of it.

Free market governance

EigenLayer provides an open market mechanism that allows validators to determine their own risk-to-reward ratio and choose which restaking module to secure. EigenLayer sees this as a service provided by venture capital firms. Their support is essential for innovation, but the returns are at risk (in the case of restaking, the risk of shrinkage). This way, EigenLayer changes the current market principles and moves Web3 forward.

How Crypto Restaking Works

Restaking process involves staking an asset anew after its initial staking period. This procedure enables the staked asset to participate in another staking program or platform, enhancing its functionality and providing the holder with an extra array of rewards, albeit with heightened slashing risks.

Let’s look at an example from the Ethereum ecosystem.

Ethereum’s network is renowned for its robust PoS consensus mechanism, bolstered by numerous validators and extensive distribution. Nonetheless, staked ETH remains inactive on Ethereum, prompting the emergence of liquid staking derivatives. Liquid staking converts staked ETH into tradable tokens, which are usable within decentralized finance (DeFi) applications.

By eliminating the 32 ETH minimum staking requirement, liquid staking enables small-scale holders to pool their assets with others, potentially allowing them to reap staking rewards.

Restaking extends this concept further. These protocols permit other decentralized platforms to utilize assets staked on Ethereum for their own security. Both validator and nominator stakers can earn multiple rewards: initially from the Ethereum network and additionally from the protocol they are restaked into.

So, thanks to restaking, economic security is flipping 10x:

economic security flippening
⬛⬛⬛⬛⬛⬛⬛⬛⬛⬛ 10x

Ethereum
• 31M ETH staked
• $3,400 per ETH
→ $105B of economic security

Bitcoin
• 600M TH of hashrate*
• $17.5 per TH**
→ $10.5B of economic security

*Expressing hashrate in TH is a common abuse of notation. From…
— Justin Ðrake 🦇🔊 (@drakefjustin) March 1, 2024

Restaking opens doors for networks beyond Ethereum to access ETH validators to validate their own networks, utilizing the same stakes. Given that ETH validators are currently among the most trusted and reliable validators in the market, this collaboration enhances the credibility and security of participating networks. This sets them apart as more dependable options compared to others.

Talk to an expert!

Schedule a call with one of IdeaSoft tech specialists, and we correctly draw up the requirements for your project

Benefits of Restaking

Here 3 main benefits of crypto restaking that it brings to Web3:

Enhanced rewards. By staking assets on two networks, stakers have the potential to amplify their earnings significantly.
Augmented security. As the volume of assets staked increases, so does the value of the network, bolstering its resistance against potential attacks. This heightened security transforms it into a steadfast nucleus for dApps, protocols, and platforms.
Mitigated dumping. Restaking renders the original token more adaptable, dissuading immediate selling. This expanded utility minimizes the risk of value depreciation for the project and its investors, nurturing a more resilient and enduring ecosystem.

The impact of restaking on the future of Web3 will be huge.

The Most Popular Restaking Protocols

Here are 3 top restaking protocols you should be aware of.

Ether.fi

Ether.fi is the largest liquid restaking protocol (as of mid-March 2024) with a TVL of over $2.2 billion. Ether.fi’s LRT is called eETH restaking tokens:

Once a user deposits their ETH and receives an eETH restaking token, they can use it in DeFi to maximize their profits.
The deposited $ETH will receive rewards for both Ethereum PoS staking and EigenLayer restaking (once EigenLayer rewards become available).
Users can also earn Ether.fi loyalty points intended to play a role in decentralized governance.

Ether.fi also has a related NFT project called Ether.fan, where users can stake their $ETH and mint NFT to earn more points. The NFT represents the stake amount in $ETH, automatically accrues a reward for the stake, and increases the reward depending on how long the user stakes.

Puffer Finance

Puffer Finance is the second largest liquid asset crypto restaking protocol, providing users with their own LRT, pufETH. Although Puffer Finance was only launched in early February 2024, its performance is quite strong, with TVL already exceeding $1.4 billion.

At this stage, it only accepts $stETH (LIDO Deposits ($ETH LST)). Once the main Puffer restaking network is up and running, the plan is to run a stETH Lido to $ETH exchange and re-fix it on EigenLayer.

Puffer Finance has also committed to self-limiting protocol growth to 22% of all Ethereum validators as a way to protect Ethereum decentralization.

Kelp DAO

Its TVL is over $730 million (as of mid-March 2024). It allows for restaking with rsETH. Kelp DAO currently supports its own $ETH, $stETH Lido, $ETHx Stader, and $sfrxETH Frax:

Users can accumulate Kelp Miles and EigenLayer points as a reward for restaking when making a deposit to Kelp.
Kelp Miles = (Amount $rsETH) * number of days * 10,000
Kelp has a referral program.

Kelp currently has integration withPendle, Uniswap, Curve, and Balancer. Kelp contributors can use their $rsETH to interact with these protocols and earn additional profits and extra Kelp Miles/EigenLayer points.

Case Study: Dollet Wallet and Released Restaking Feature

Dollet is a great example of a crypto restaking project. It is a non-custodial mobile crypto wallet. It incorporates advanced features like pool deposits, yield farming strategies, and integration with multiple blockchain networks, including Ethereum, Arbitrum, Optimism, BNB Chain, Polygon, Solana, Tron, BTC.

What our IdeaSoft team has implemented:

Essential wallet functionalities: sending, receiving, bridging, swapping, buying crypto, and receiving notifications
Admin panel functionalities: log in/log out, user registration, asset management, pool deposits, farming strategy management, adjustable settings, and network switching;
Stargate API that enables bridge functionality
Pool investment smart contract that was developed using Solidity within the Arbitrum network
Keychain solution integration
KYC functionality supported by Wert technology

Apart from these common features, we have released restaking functionality inside Dollet wallet. This way, we provided users with more diversified investment options and enhanced returns. USDC Wombat and ETH Restaking strategies are designed to optimize yield generation by employing sophisticated mechanisms. They cater to both conservative investors preferring stablecoins and those looking for growth through Ethereum-based assets.

Summary

In the future, the proliferation of protocols like EigenLayer will change the economic balance of Ethereum and simplify the process of building infrastructure. As a consequence, it will have a positive impact on the development of the ecosystem.

Restaking is being actively discussed in the community, and the discussion is quite constructive. This is a positive signal because when the concept is implemented on a large scale, developers can solve existing problems and reduce intra-network risks.

Restaking technology solves problems relevant to many services and allows validators to manage capital more efficiently. Therefore, we can expect active segment development. Furthermore, the implementation of Ethereum EIP-4844 is anticipated to significantly enhance network scalability, supporting the growth and complexity of decentralized applications. Additionally, these advancements will likely lead to the creation of more user-friendly tools like Farcaster frames, further simplifying interaction with the blockchain.

How to Reduce Web 3.0 Software Development Costs

Web3.0 development cost optimization is a hot topic because the blockchain domain constantly evolves, and it becomes costlier to develop Web3.0 projects. Entrepreneurs seek for ways to save money, launch quick MVPs, and develop them on saved funds. One of the most effective strategies is leveraging IT outstaffing to access skilled developers at reduced costs without compromising quality.

Our IdeaSoft team understands this. This is why we have prepared this article together with our top management to show you the best ways to optimize Web3.0 costs in your future or current project.

Looking to optimize your software development process and cut down costs without compromising quality?

Our expert team specializes in innovative strategies to streamline your project, ensuring maximum efficiency while minimizing expenses. Ready to revolutionize your software development approach and save on costs? Reach out to us today for a personalized consultation!

So, let`s start discussing how to optimize Web3.0 development cost in the short and long term!

Table of Contents:

Understanding Web3.0 Development Costs
How Much Does Web3 Application Development Cost?
How to Optimize Web 3.0 Costs: Our Recommendations
IdeaSoft Web3.0 Case Studies
Summary

Understanding Web3.0 Development Costs

There are 5 main factors affecting your Web3.0 software development cost:

Team composition. Web3.0 projects require a multidisciplinary team comprising developers, blockchain experts, designers, project managers, and legal advisors. The size and expertise of the team will directly impact development costs. Highly skilled professionals command higher rates, so a larger team with specialized expertise may increase costs.
Tech stack. The technology stack for Web3.0 development typically includes blockchain platforms, smart contract languages, frontend frameworks, and backend technologies. Popular choices for blockchain platforms include Ethereum, Polkadot, and Solana, each with its own ecosystem and Web3.0 development tools. For smart contract development, languages like Solidity (primarily used on Ethereum) and Ink! (designed for Polkadot) are widely employed to create decentralized applications (dApps). Developers often rely on Ethereum and Binance for DEX due to their scalability and extensive ecosystems. These tools form the backbone of Web3.0, facilitating secure, efficient, and scalable development.
Blockchain choice. The choice of a blockchain platform can significantly impact development costs due to differences in developer expertise and ecosystem maturity. For example, platforms like Ethereum have a well-established developer community and extensive documentation, which may lead to lower development costs compared to newer or less mature platforms. Additionally, the availability of developers proficient in a particular blockchain’s programming language (e.g., Solidity for Ethereum, Rust for Substrate-based chains) can affect costs.
Product complexity. Simple applications like token-based systems or basic decentralized finance (DeFi) projects may require less development effort and, therefore, lower costs. Conversely, complex projects involving intricate smart contracts, decentralized governance mechanisms, or novel blockchain integrations will likely incur higher costs due to the increased development time and expertise required.
Similar project existence. If existing solutions or open-source libraries can be leveraged, development time and costs may be reduced. Conversely, completely novel projects will require thorough investigation and potentially extensive discovery phases, leading to higher initial costs.

How Much Does Web3 Application Development Cost?

In addition to exploring the intricacies of developing Web3.0 applications, entrepreneurs frequently inquire about the overall financial investment necessary for their project. We want to note that outsourcing and outstaffing costs will greatly vary.

At IdeaSoft, we have a wealth of experience within the realm of Web3.0, such as the development of a cryptocurrency exchange platform (Biiteeu), a trade finance solution (Versara), and an NFT marketplace (Nfinity). The Web3 app development cost assessments are bespoke endeavors.

Typically, Web3 software costs start from $20,000 and can reach over $100,000. For instance, at IdeaSoft, our experts meticulously scrutinize each variable to devise a tailored cost estimation strategy. We ensure the delivery of a robust Web3.0 product without compromising on its caliber or functionality.

You can hire remote blockchain developers 24/7!

Contact us now and continue reading this article in order to learn more. Let’s create a cost-effective software solutions together!

How to Optimize Web 3.0 Costs: Our Recommendations

Here are 4 ways to optimize web3.0 development cost tested with our own experience.

Invest in the proper discovery phase

For sustainable success, investing in a comprehensive and meticulously researched discovery phase can yield significant savings of up to 50%. This holds true for budding startups embarking on new ventures as well as established projects seeking to expand their feature set.

Laying a solid foundation through thorough Web3.0 trends exploration and planning is a great advantage. This way, you can optimize Web3.0 development cost and mitigate unnecessary expenditures in the long run.

Opt for outsourcing teams

Outsourcing presents a compelling proposition for businesses delving into Web3 project development. Such teams offer significant cost advantages over the traditional approach of hiring full-time employees. Outsourcing software development allows you to access a global talent pool of specialized professionals without the overhead costs associated with recruitment, onboarding, and maintaining in-house teams.

Moreover, outsourcing allows for flexible scaling, enabling you to adapt resources according to project requirements. This way, you can also optimize expenditure. This approach not only minimizes fixed costs but also grants access to diverse skill sets and expertise, ultimately fostering innovation and accelerating project delivery.

To be honest, to pay less at the end is to pay more at the beginning. And as we know, quality always costs, and we all know about it. There are plenty of teams and individuals you can onboard, but as market conditions change rapidly, this becomes harder and harder. Even experienced teams sometimes can’t keep up with all the innovations.
Herman Stogniiev, CTO and Co-founder of IdeaSoft

Make small increments as often as possible

To effectively reduce Web3 development costs, follow these recommendations:

Define a clear project scope. Before diving into development, thoroughly define the project scope. Clearly outline the features, functionalities, and objectives of your web3 application. This prevents scope creep, which can lead to increased development time and Web 3.0 costs.
Select the right blockchain. Choose a blockchain platform that aligns with your project requirements and goals. Look for blockchains with active communities, as they offer better support, resources, and potential for collaboration. Conduct thorough research on transaction speed, scalability, consensus mechanism, and developer tools available.
Prioritize security with open-source tools and frameworks. Leverage open-source tools and frameworks to expedite development while maintaining a strong focus on security. Choose reputable libraries and frameworks that are actively maintained and have a track record of addressing security vulnerabilities promptly.
Consider modular development and scalability early on. Adopt a modular development approach to enhance flexibility, maintainability, and scalability. Break down your project into smaller, manageable modules or components that can be developed, tested, and deployed independently. This allows for easier iteration, integration of new features, and application scaling as user demands grow.

This is how you can effectively optimize Web3.0 costs while ensuring the successful delivery of your project within budget and timeline constraints.

Plan big, but at the start, it is better to focus on something small and achievable. Make small increments as often as possible and gather feedback.
Jeffrey Smith, Head of Business Analysts team

Choose experienced developers as they make less ineffective actions

With an experienced team with proven track records, you know you can pay more for the development yet save much more on further adjustments. But this is not the main reason for opting for experienced development teams. What is much more important – the high-end security that experienced teams offer.

Security is critical. Unfortunately, many Web3 projects, as we see, try to reduce their costs on code audits, leading to massive exploits, loss of funds, and overall product failure. So, to prevent such results for your Web3 project and not pay a high price at the end, it’s better to partner with a team experienced in Web3 development like IdeaSoft.

Consider a crew that:

Got proven track of delivered products
Has a partner-oriented approach
Built projects that people were/are using and love them
Comprises of geeks

Our team knows the market and has launched many projects. In the current bullish market, the speed and efficiency of the Web3 project launch are paramount. Our IdeaSoft team is sophisticated and knows all the solutions you can apply to your Web3.0 project to speed up all the processes. With us, you can launch MVP in a matter of weeks.

From my point of view, to make a great product and not spend a fortune while being on time with at least half of your deadline, you need to have great partners to work with. My recommendation is always to look for the right team! Consider choosing partners who will take the entire development process so you can focus on your core responsibilities! Choose wisely.
Simon Madry, Head of Business Development

IdeaSoft Web3.0 Case Studies

Here are 3 examples of Web3.0 projects confirming our deep expertise.

Asymetrix

Asymetrix is an Ethereum-based decentralized and non-custodial protocol developed by IdeaSoft. It enables users to deposit stETH and have a chance to win valuable staking rewards. The protocol addresses the challenge of low yields in traditional staking by pooling together generated yields and distributing them randomly and asymmetrically to a single user, ensuring even small stakeholders have a chance to win significant rewards.

What IdeaSoft team has implemented:

Stable decentralized protocol that allows users to deposit any amount of stETH
Transparent prize distribution functionality using Chainlink VRF
ASX (ERC-20) protocol token creation and implementation for governance and airdrop programs
DAO on Snapshop
esASX token for early adopters
BOOST system to reward LPs
MINI POOLS deposit feature

8 experts worked on Asymetrix and the first version was delivered in 6 months.

Dollet Wallet

Dollet is a non-custodial mobile crypto wallet designed to support ERC-20 standard tokens. It incorporates advanced features like pool deposits, yield farming strategies, and integration with multiple blockchain networks, including Ethereum, BNB Chain, Polygon, Arbitrum, and Optimism.

What IdeaSoft team has implemented:

Basic wallet functionalities: sending, receiving, bridging, swapping, buying crypto, and receiving notifications
Admin panel functionalities: log in/log out, user registration, asset management, pool deposits, farming strategy management, adjustable settings, and network switching;
Stargate API that enables bridge functionality
Pool investment smart contract that was developed using Solidity within the Arbitrum network
Keychain solution integration
KYC functionality supported by Wert technology

10 experts continuing working on the Dollet non-custodial crypto wallet while the first version was delivered in 6 months.

Rainmaker Games

Rainmaker Games revolutionizes the Play-to-Earn (P2E) gaming industry with in-game NFTs and a marketplace. The Rainmaker staking technology, developed by IdeaSoft, encourages liquidity and user participation. Advanced wallet whitelisting enhances platform security. Smart contracts ensure controlled token release. Integration with Uniswap V2 offers additional income opportunities. Furthermore, Rainmaker Games is exploring innovative x-to-earn models, expanding beyond gaming to create diverse earning opportunities through various user activities.

What our team has implemented:

Incentivized liquidity pools
Secure reward distribution
Enhanced security with wallet whitelisting
Token vesting mechanism
Integration with Uniswap V2 for functionality improvement

Protocol incentive model for liquidity pools
Metamask integration
Pool investment smart contract with token vesting

User-friendly interface design
Treasury smart contract for token distribution management

6 experts worked on the Rainmaker staking project and delivered it in 4 months.

Summary

Choosing the right Web 3.0 partner is crucial to optimize Web 3.0 development cost. You should consider the following aspects:

Technical strength and experience of the partner
Business reputation and service quality
Price competitiveness, innovation, and sustainability

If you want to quickly launch your Web3.0 project on the bullish market, we are here to help you! IdeaSoft team knows all the solutions you can apply to your Web3.0 project to speed up its development. We leverage account abstraction to simplify and enhance user interactions in your project. With us, you can launch MVP in a matter of weeks.

What is Account Abstraction: How Does It Reshape the World of Crypto Wallets?

In the cryptocurrency space, users cannot set multiple private keys for the same wallet address, nor can they modify them. Therefore, if a private key is lost, not only will wallet assets be lost, the wallet will never be used again and will have to be invalidated.

According to Conor Grogan, director of product strategy and business operations at Coinbase, about $1.15 billion in cryptocurrency has been permanently lost through human negligence. Grogan added that the statistic is much lower than the amount of ETH locked up due to loss of wallet access because many long-motionless assets are on the chain, and it’s impossible to tell how many of them have lost their private keys.

This post is carefully crafted by our blockchain department to explain the account abstraction technology basics and show a few examples of protocols that have already implemented it.

Want to integrate Account Abstraction into your crypto wallet?

Recently, ERC-4337-based crypto wallets have begun to emerge as an attempt to reopen the blue ocean of the crypto wallets, as opposed to older crypto wallets such as Metamask and Trust Wallet. Schedule a conversation with our tech specialist to discuss how account abstraction technology can benefit your wallet solution!

Table of Contents:

Key Features of Account Abstraction
ERC-4337: The Engine of Account Abstraction
Why Is Account Abstraction an Awesome Solution For Crypto Wallets?
Examples of Crypto Wallets with Account Abstraction
IdeaSoft Experience Building Account Abstraction – Dollet Wallet
The Future of Web3 Access and Account Abstraction
Summary

Key Features of Account Abstraction

Crypto wallets have long been a focus of Ethereum founder Vitalik Buterin. Researchers at Nethermind and Opengsn, with Vitalik’s help, have proposed ERC-4337. This solution would bring account abstraction to Ethereum without changing any consensus layer protocols. Vitalik presented his ideas in his article How I think about choosing guardians for multisig and social recovery wallets. It is dedicated to promoting the adoption of trusted third parties (Guardians) in crypto wallets.

The account abstraction technology has introduced the next level of user interaction with decentralized applications. The key difference lies in the fact that it allows for assets to be exclusively held by smart contracts rather than being controlled by externally owned accounts (EOAs) as it was previously managed.

Key features of account abstraction in crypto wallets:

Flexible transaction fees. Ethereum account abstraction enables gas fee payment in any ERC20 token, enhancing flexibility.
Social recovery integration. While not intrinsic to account abstraction, social recovery is a vital feature that bolsters security and eliminates the need for traditional seed phrase management.
Simplified security. The integration of social recovery removes the complexity of managing seed phrases, simplifying the overall user experience.

At IdeaSoft, we are excited about account abstraction. Our excitement stems from its potential to reshape how we interact with decentralized ecosystems. That is why we have prepared a detailed scheme introducing the example of how account abstraction works within the Ethereum network for your better understanding and technology onboarding.

Example of how account abstraction works within Ethereum network — *Example of how account abstraction works within the Ethereum network*

Imagine performing a wide range of on-chain operations — from buying ETH to executing complex smart contracts — directly from your mobile phone, all with self-custody. This capability extends well beyond mere ETH purchases on DEXs like Uniswap. It facilitates seamless, secure, and user-friendly on-chain activities, with processes like fiat-to-crypto conversions (e.g., fiat to USDT/USDC) running smoothly in the background.

Current methods, such as purchasing ETH through custodial solutions, lack the trustless nature of account abstraction. Traditional custodial services require you to entrust your funds and personal data to a third party, with potential risks as seen in incidents like the FTX collapse. Account abstraction self-custodial approach offers a more secure and private alternative.

Wallet abstraction, combined with social recovery, not only makes your wallet more secure than traditional custodial options but also provides a familiar, Web2-like UI/UX. Everything technical operates under the hood, ensuring a seamless user experience.

ERC-4337: The Engine of Account Abstraction

Currently, Ethereum wallet addresses are categorized into EOA wallets (Externally Owned Accounts) and Contract wallets. ERC-4337 proposes the concept of account abstraction, which can be used to manage multiple Contract Accounts and EOAs to improve the security and operation of Ethereum accounts.

The following benefits can be realized by using account abstraction EIP:

More efficient contract deployment and maintenance. Since multiple contracts can share the same address and private key, the workload of contract deployment and maintenance can be reduced.
Better security. Since account contracts represent only one address and private key, the risk of private key leakage can be reduced.
Better scalability. Since reusable contract code can be implemented, complex contract logic can be more easily realized.

In short, the vision of ERC-4337 is to achieve user-friendliness, mainly in terms of ease of use and social recovery. It also aims to attract new users by improving the UI experience of crypto wallet design.

The difficulties in implementing ERC-4337 are the development cost, compatibility, and user privacy challenges after complicating the wallet, as well as the higher gas cost of complex interaction contracts. Additionally, the implementation of Ethereum EIP-4844 is expected to further enhance scalability, making it easier to handle the increased demand and complexity of future applications.

Why Is Account Abstraction an Awesome Solution For Crypto Wallets?

Account abstraction offers 3 awesome advantages for crypto wallets:

Enhanced security. With account abstraction, the security of the wallet is significantly improved. Traditional wallets require users to manage private keys directly, which can be prone to human error or targeted attacks. Account abstraction allows for more sophisticated security models where the complexity of key management can be abstracted away from the end-user, potentially reducing the risk of theft or loss.
Improved user experience. Simplifying the user experience is crucial for the widespread adoption of cryptocurrencies. Ethereum account abstraction can make wallets more user-friendly by removing the need for users to handle complex cryptographic keys directly. This can encourage more people to use cryptocurrencies by reducing the barrier to entry.
Smart contract integration. Account abstraction is particularly beneficial for platforms like Ethereum, where smart contracts play a central role. By abstracting accounts, wallets can interact seamlessly with smart contracts, enabling a wide range of decentralized applications (DApps) and financial services without sacrificing security or usability.

For example, new users no longer need to transcribe mnemonics when registering. Users who lose their wallet private keys can also recover them through social connections. Other practical benefits include multi-account/multi-chain management and bundled transactions, such as allowing the wallet to automatically renew services.

Account abstraction represents a significant advancement in the functionality of crypto wallets. By eliminating user experience complexities, such as the necessity to manage ETH fees or oversee the creation and maintenance of seed phrases/private keys, this feature greatly enhances usability for end users.
Rostyslav Bortman, Head of Blockchain Department at IdeaSoft

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Examples of Crypto Wallets with Account Abstraction

Here are examples of blockchain wallets with account abstraction that are worth your attention if you think about crypto wallet app development.

Argent

The Argent wallet is a cryptocurrency wallet designed with a focus on security and ease of use. Its key features include:

Social recovery. Argent’s social recovery feature allows users to recover their wallets by connecting with a trusted contact. This makes it easier for users to recover their wallets without memorizing complex mnemonics or private keys.
No need to pay for gas with ETH. Argent uses MetaTransaction technology to enable users to send transactions without owning ETH. Specifically, Argent pays the gas fee for the user through a Gas Station Network (GSN) middle-tier service and deducts the corresponding fee from the user’s account.
Attack detection. Argent wallet uses self-developed “Guardians” smart contracts to automatically detect and prevent phishing attacks, malware attacks, replay attacks, and so on. For example, when a user receives an email or text message that appears to be from Argent Wallet, the Guardians contract will detect if the message is from an official Argent channel. If it detects that the message is not from an official source, the Guardians contract automatically prevents the user from executing any transactions related to that message.

Fabric Ventures, Metaplanet, Paradigm, StarkWare, Jump Crypto, Animoca Brands, and others participated in funding this project. At this stage, Argent Wallet has a small user base, mainly due to the instability of the ZK network, lack of support for multiple cryptocurrency storage and transactions, etc.

Avocado (Instadapp)

Instadapp is an Ethereum-based DeFi protocol designed to make DeFi simpler and easier to manage. The protocol introduces Avocado, an account abstraction-based wallet. Its key features include the following:

Multi-chain support. Avocado supports multiple blockchains, allowing users to manage multiple cryptocurrencies in the same wallet, with all gas fees paid using USDC.
Security. Avocado wallet adopts multi-signature technology and smart contracts to protect users’ digital assets. It also supports the connection of hardware wallets.
DeFi services. Users can access various decentralized applications directly from Avocado Wallet, such as lending, trading, and stablecoins. Additionally, users have free access to all current Instadapp policies.
Community governance. Avocado Wallet adopts the DAO (Decentralized Autonomous Organization) governance model, where users can participate in wallet decisions and development through voting.

Coinbase Ventures, Pantera Capital, Standard Crypto, Robot Ventures, Balaji Srinivasan, and others participated in funding this project.

Braavos

Braavos is an open-source account abstraction layer that provides a simple way to manage multiple accounts and a unified interface for applications. Its features include:

Multi-account support. Braavos supports the management of multiple accounts, including bank accounts, Alipay, PayPal, and so on.
Unified API. Braavos provides a unified API that enables applications to use the same code for different account types.
Security. Braavos uses the OAuth2 protocol to handle authorization and authentication, ensuring data security.
Easily extensible. Braavos is designed to be easily extended to support new account types and services.
Automated. Braavos automates the processing of account balances and transaction history, allowing the application to focus on core business logic.

Pantera Capital funded Braavos with participation from StarkWare, Crypto.com Capital, Matrixport Ventures, etc. Braavos’ hardware security module is implemented through account abstraction and can verify arbitrary signatures.

IdeaSoft Experience Building Account Abstraction – Dollet Wallet

Dollet is a non-custodial crypto wallet that provides users with the finest crypto holding experience while allowing for additional income generation. The core functionality is designed to support ERC-20 tokens, allowing users to send and receive crypto easily. Alongside these basic features, it offers options for bridging, swapping, and buying crypto directly within the app.

Furthermore, what sets Dollet apart is that the app enables users to pool deposits across various networks and employs yield farming techniques to help grow the assets held in the wallet. The app also includes standard features such as settings, biometric authentication, and notifications, enhancing user experience and convenience.

wallet with account abstraction — *The preview of the Dollet wallet mobile interface*

The introduction of account abstraction brings significant enhancements to Dollet’s core functionality and is aimed at improving user experience and driving adoption.

Two key account abstraction features to be implemented:

Social recovery feature. Social login presents a challenge for existing Dollet users as their accounts are Externally Owned Accounts, incompatible with social network integration designed for Contract Accounts (CA). To address this, users are prompted to import their private keys to enable social login, ensuring privacy as Dollet does not store such sensitive information. Notably, registration via social networks creates a user’s CA, offering a seamless transition for users.
Transaction fee payment in ERC-20 tokens. Existing EOA users face limitations as only CA users can utilize this feature. Dollet offers two solutions: either creating “sub-accounts” within a user’s account, maintaining separate balances for EOA and CA, or transitioning the user to a CA, enabling ERC-20 fee payments. Users are informed of this transition and given the choice to migrate, with funds transferred accordingly, ensuring a smooth transition process.

The Future of Web3 Access and Account Abstraction

ERC-4337-based wallets focus on abstracting the underlying functionality. Social recovery, no native Gas fees, and bundled packaged transactions are some of the features that can dramatically improve the UI experience. In addition, a modular development platform integrating ERC-4377, such as Patch, Sequence, and Gelote, may become mainstream.

Account abstraction wallets may need a more “Make Sense” case to be adopted on a large scale. The “No Gas Fee” tagline of several projects at this stage is somewhat misleading. The logic behind this is to allow users to pay for gas with non-ETH currencies such as USDC. On the other hand, the wallet’s multi-chain dilemma has not been significantly improved. Wallets that claim to be able to realize multi-chain are only geared towards EVM-compatible chains, while eco-wallets are still trapped in a silo effect.

Smart wallets in crypto are becoming a trend, and other competitors have emerged in the niche. MPC wallets decentralize the storage of private keys in multiple devices and use multi-party computing to achieve functions such as no private key and social recovery. For example, MPC Wallet Capsule has expanded the use of on-chain transactions by introducing programmable MPCs. Meanwhile, Telegram, which has a large user base, launched a crypto wallet that currently supports trading BTC, TON, and USDT directly from the app’s chat interface. These competitors are also competing for users and are constantly introducing new features and services.

Summary

Account abstraction technology is reshaping cryptocurrency management by offering a customizable alternative to the traditional EOA model. This innovation, outlined in our review, addresses the shortcomings of existing crypto wallets by allowing users to tailor their accounts through smart contracts. By enhancing security, functionality, and user experience, account abstraction not only improves the current crypto wallet market but also opens avenues for next-gen crypto innovations. Want your project to be the next unicorn?…

Understanding X-to-Earn Applications: A New Era of Online Income

In the last decade, the world gradually shifted to the gig economy, accelerated by COVID-19 and global conflicts, which prompted people towards alternative income sources in Web3. This includes X-to-Earn projects, with Web3 gaming significantly leading this movement’s growth. Now, it is possible to earn with crypto projects.

However, according to CoinGecko, 75% of blockchain games have failed. CoinGecko has studied the statistics of 2817 Web3 games launched from 2018 to 2023. Only 690 retained the audience, while the rest lost all users within two weeks. The best year for blockchain games was 2021 – only 339 out of 738 projects failed. The worst year was 2022 – 742 games failed, while developers launched 693 projects. Utilizing outstaffing for Web3 development can help businesses scale their teams with specialized talent to create resilient and innovative blockchain applications.

We at IdeaSoft are an experienced team with diverse experience in Web3. Along with that, we own Eventyr, top Ukrainian game development company. It became a part of our company after we bought it as a consequence of our venture builder strategy. Eventyr’s case studies prove its vast expertise. Together with Eventyr team and its expertise, we prepared this article. Read further to find out more about X-to-Earn applications.

Table of Contents:

Definition of X-to-Earn Applications
Types of X-to-Earn Applications
Benefits of X-to-Earn Applications
Best Practices for Web3 X-to-Earn Application Development
Notable examples of X-to-Earn games
Summary

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The X-to-Earn business model is a concept commonly associated with blockchain-based games, particularly those utilizing NFTs or decentralized finance elements. If you want to build an X-to-Earn application or integrate any of the X-to-earn app monetization models into your current product we have a team of experienced game developers to launch this solution. Leave us a message and we will help you to draw up requirements for your project!

Definition of X-to-Earn Applications

The core of the X-to-Earn model is to connect in-game activities with real-world economic value with the support of Web3 technology so that players can get tangible rewards for the time and energy invested in the game. In addition, with the further popularity of Web3, the X-to-Earn model is being further extended and is bringing more forms of innovation.

The first is to build a virtual economic system in the game. The term X-to-Earn promotes the development of the virtual economic system in the game. By participating in the game, players mine, trade, and upgrade digital assets to realize the value exchange between the virtual and real economies. X-to-Earn brings a new business model and profit path to the game industry.

The second is to bring socialization and collaboration between players. By jointly participating in-game tasks, competitive games, and other activities, players can obtain shared benefits and achieve win-win benefits among groups. X-to-Earn mode not only enriches the social nature of the game but also helps build closer community relationships.

Finally, it provides developers with a new profit model. By selling in-game digital assets, taxing, etc., developers can achieve a more stable source of income. In addition, developers can further promote the development of the game ecosystem by motivating players to participate in game governance and content creation.

With the advent of the Web3 era, the X-to-Earn applications are leading the game industry into a new stage. By empowering players, promoting decentralized economic models, and realizing asset liquidity and interoperability, the Play-to-Earn gaming model brings more innovation space and business opportunities to the game industry. As an important part of the Web3 world, X-to-Earn will continue to lead the game industry to develop in a more free, fair, and prosperous direction.

What we have witnessed so far is just the beginning of transforming the way we work, play, socialize, create, and learn. Examples like Axie Infinity and Sandbox showed the diversification of opportunities from the Play-to-earn field.
In essence, various X-to-Earn models involve through different behaviors to earn rewards. The variable X signifies distinct yet similar actions, aiming for participation, actions, presence, and digital currency earnings through various activities.
Szymon Mądry, Head of Business Development at IdeaSoft

Types of X-to-Earn Applications

We prepared this article together with Eventyr, one of Ukraine’s top game development companies. Each X-to-Earn category has unique potential in the expanding universe of X-to-Earn applications. Still, Daniel Slupski, CEO of Eventyr, highlights the following:

Play-to-Earn (P2E) continues to be a frontrunner, given its ability to deeply engage users by merging entertainment with economic incentives. Its potential lies in transforming traditional gaming into a more participatory and rewarding experience, appealing to a vast, already-established gamer community. In 2024, the trend in play-to-earn games is shifting toward creating intrinsically enjoyable games with earning elements that complement rather than dominate the gameplay. This approach aligns with the interests of both gamers and investors, ensuring a balanced and sustainable ecosystem.
Move-to-Earn (M2E) is another area with immense growth potential. By incentivizing physical activity, M2E apps tap into a broad demographic concerned with health and fitness, marrying the wellness industry with digital rewards. This sector has the unique advantage of promoting real-world activities, which can lead to more sustainable user habits and long-term engagement.
Learn-to-Earn (L2E) platforms have a transformative potential, especially in the education and professional development sectors. They democratize access to learning, making it more accessible and rewarding. The scalability of L2E models in various knowledge domains and their potential to impact skill development on a global scale make them particularly promising.
Create-to-Earn (C2E) and Watch-to-Earn (W2E) each have their merits. C2E projects empower content creators in a digital economy while Watch-to-Earn crypto projects innovate how we consume media. However, their long-term potential may be more niche than P2E, M2E, and L2E, which address more universal needs and interests.

While all X-to-Earn models hold significant promise, P2E, L2E, and C2E show the most potential due to their broad appeal, ability to integrate into everyday life, and potential for long-term, sustainable engagement.

Benefits of X-to-Earn Projects

The transformative potential of X-to-Earn applications is inevitable. This domain leverages blockchain and decentralized principles to redefine the relationship between players, games, and economic value. It significantly redefines how to design a Web3.0 app to get the best UX. Let’s delve into a few key benefits of X-to-Earn applications in more detail.

Monetization of Gameplay

X-to-Earn models redefine the traditional gaming experience by enabling players to monetize their skills and time. In conventional gaming, players invest significant hours mastering a game, but the rewards are often confined to in-game achievements. Players receive tangible rewards with X-to-Earn apps, often through cryptocurrencies or valuable in-game assets. This fundamentally alters the relationship between player effort and real-world compensation.

Ownership of Virtual Assets

Blockchain technology is pivotal in X-to-Earn applications by ensuring true ownership of in-game assets. Non-fungible tokens (NFTs), unique digital assets secured by blockchain, grant players the right to buy, sell, and trade their virtual items outside the game environment. This concept of ownership adds a new layer of value to in-game possessions, creating a market for virtual assets.

Decentralization

X-to-Earn applications often operate on decentralized platforms, reducing the dominance of a single authority. This decentralization contributes to a fairer and more democratic gaming ecosystem. Traditional games often have centralized control over economies, item distribution, and player transactions. In contrast, X-to-Earn models leverage decentralized technologies to distribute control, enhancing transparency and trust among the player community.

Global Accessibility

One of the distinctive features of X-to-Earn projects is its ability to transcend geographical boundaries. Regardless of economic disparities, players from diverse regions can participate and earn in these decentralized gaming ecosystems. This global accessibility not only opens up economic opportunities for players worldwide but also fosters a more inclusive gaming community.

Community Building

X-to-Earn applications like Play-to-Earn blockchain games emphasize community engagement as an integral aspect of the gaming experience. Players collaborate, compete, and strategize to optimize their earnings. The shared interest in earning real-world value creates a strong sense of community, where players actively contribute to the success and growth of the game. Community building becomes a key driver for the sustainability and popularity of X-to-Earn games.

Best Practices for Web3 X-to-Earn Application Development

Here are the best practices from our IdeaSoft team to help you create a blockchain application without significant problems.

Strong Blockchain Integration

Ensure seamless integration with a robust and scalable blockchain network. Ethereum and other compatible blockchain platforms are commonly used for X-to-Earn applications. Smart contracts on the blockchain facilitate transparent and secure transactions. This enables features like asset ownership and value transfer.

Token Standards and Interoperability

Adhere to established token standards such as ERC-20 or ERC-721 to ensure interoperability with wallets, exchanges, and other decentralized applications. Consider incorporating standards like ERC-1155. They can ensure more flexible and efficient management of in-game assets.

Decentralized Identity and Authentication

Implement decentralized identity solutions to enhance security and privacy. Decentralized authentication methods, such as blockchain-based logins, reduce the risk of centralized data breaches. They also enhance user control over the personal information.

Scalable and Gas-Efficient Transactions

Design smart contracts and transaction processes to be gas-efficient and scalable. High transaction fees can deter users. We recommend optimizing the code and leveraging layer 2 scaling solutions to enhance the overall user experience.

As CEO of a game development company working in the Web3 domain, I’m observing a pivotal transformation in the play-to-earn (P2E) model in 2024. Our approach emphasizes two key aspects: integrating real value into gaming experiences and evolving sustainable business models.
Initially, the P2E industry faced challenges. Many projects resembled gambling more than gaming, appealing more to small investors seeking quick profits than to genuine gamers. This led to unsustainable models that lacked engagement and long-term viability.
Innovative business models are emerging, focusing on dynamic tokenomics that support the game’s economy without overwhelming it. These models prioritize player retention and game quality, ensuring the P2E experience is rewarding and engaging.
Daniel Slupski, CEO at Eventyr

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Notable examples of X-to-Earn games

Here are 3 examples of X-to-Earn games that got a lot of positive feedback from gamers.

Decentraland

The gameplay is based on creating land plots, works of art, and NFTs, owning which users participate in managing the decentralized DAO platform. Due to this, the Decentraland community can participate in the management of the game. The game has launched its own digital coin, MANA. All in-game items are in the Ethereum blockchain.

The game was launched in 2016. After that, the developers significantly improved it, as a 3D world appeared after the 2D experiment. So, Decentraland is a virtual space with digital real estate and other assets.

Splinterlands

The point of this game is to collect a squad for battles at a certain time. Splinterlands refers to collectible fantasy games. Launched in 2018, it is based on the Hive blockchain. It was originally known as Steem Monsters, but the name was changed after a while. If we talk about the concept, there is something similar to popular games like Dota Auto Chess and Hearthstone Battlegrounds.

The accumulation of DEC tokens is carried out due to completing tasks or winning battles. The size of the reward depends on the league. For example, participants of the bronze league receive about 8 NFT for winning. In-game tokens can be withdrawn.

Gods Unchained

It is a collectible game where players must earn cards to form a deck of unique, rare cards. ERC-721 tokens are utilized within the system. It should be noted that Gods Unchained‘s development staff includes former Google and Riot Games engineers. This composition made it possible to get about 15 million dollars in funding.

Certainly, this funding has made the game one of the best, according to the gaming community. If we compare Gods Unchained with its competitors, here, each player gets full ownership of the game items. In addition, the game can be run in different modes, and you can even activate single-player or multiplayer modes. There are daily tournaments. The advantages gamers note are the gorgeous graphics and the gaming process’s dynamism.

Summary

X-to-Earn is an incentive for users to engage in some kind of behavior – eating, reading, writing, curating, interacting, etc. Projects often design a scenario to “intentionally” encourage users to participate, but such incentives are often difficult to sustain and are not conducive to increasing user stickiness.

While the core of X-to-Earn is the act of x, many projects incorporate social-fi elements. The social-fi element can be understood as a strategy to encourage user growth. Still, the social element must also fit in with the x behavior to increase user stickiness and create a vibrant ecosystem.

Regarding current behavioral patterns, the X-to-Earn model is not a disruptive innovation. It is more of a reproduction of everyday human behavior or a reinvention of the existing Internet model of entertainment addiction. However, some proponents believe X-to-Earn can be revolutionary for specific industries, particularly Decentralized Exchanges (DEXs) employing the Automated Market Maker (AMM) model. AMM DEXs with X-to-Earn features could incentivize users to provide liquidity and participate in governance, fostering a more robust and community-driven DeFi ecosystem.

Top 10 Web3.0 Development Tools

We are on the cusp of the Web3 era, marking a fresh phase characterized by decentralization, digital ownership, and the emergence of innovative applications poised to reshape the internet landscape. Web3, also known as the decentralized web, is powered by groundbreaking technologies like blockchain, developing decentralized applications (dApps), and smart contracts. Consequently, developers are eagerly venturing into this dynamic frontier, aiming to leverage its vast potential and pioneer transformative solutions.

The multitude of Web3.0 development tools and platforms makes it challenging to decide which ones are essential for a project’s success. To assist you in navigating this swiftly evolving Web3 landscape, we have compiled an extensive list of the top 10 Web3 dev tools.

How to choose the best tech stack for your project?

With a keen understanding of the intricacies involved, IdeaSoft team meticulously selects the most optimal stack of Web3 tools for startups tailored to specific needs.

Our focus extends beyond immediate requirements to contemplate product scalability, ensuring that the chosen tools align seamlessly with the long-term growth and development of your Web3.0 project. Trust our expertise to eliminate the pitfalls associated with tool selection, providing you with a robust foundation for your startup’s success.

Table of Contents:

Top 10 Essential Web3.0 Development Tools
How to Choose The Best Web3.0 Developer Tools for Your Startup
Web3.0 Development Case Studies
Summary

Top 10 Essential Web3.0 Development Tools

You probably already know what Web3.0 is. If you don`t, you can read our article about what Web3.0 is. Below are listed the top 10 web3.0 startup development tools you must know.

Tenderly

Tenderly is a top-notch Web 3.0 tool for monitoring, debugging, and analyzing Ethereum smart contracts and decentralized applications (dApps). Tailored to meet the unique needs of developers in the Ethereum ecosystem, this platform offers a comprehensive toolkit. Key features of Tenderly encompass:

Visual Debugger and Real-Time Monitoring
Alerting and Notifications to address issues promptly
Gas Profiler for optimizing smart contract performance
Simulation and testing capabilities for smart contract development
Seamless integration with development tools for user convenience

Tenderly aids developers in creating, testing, and optimizing their smart contracts and dApps, ensuring the utmost levels of security, performance, and reliability.
You can also read about building dApp on Solana.

Hardhat

Hardhat stands out as a widely embraced and adaptable development environment tailored for Ethereum, strategically engineered to streamline the generation, testing, and deployment of smart contracts and decentralized applications (dApps). Notable features of Hardhat include:

Task Runner automates routine tasks
Hardhat Network presents a local Ethereum network emulator
Extensible Plugin System enables seamless integration with diverse tools and services through plugins developed by the community
Solidity compiler integration enhances the efficiency of contract development
TypeScript support elevates the overall development experience.

This platform caters to Ethereum developers with a potent and expandable infrastructure. It furnishes various features and Web3 startup tools to refine the development workflow and boost productivity.

Foundry

Foundry, crafted by ConsenSys, emerges as a comprehensive smart contract development toolchain. It is proficient in handling dependencies, compiling projects, executing tests, deploying contracts, and facilitating command-line and Solidity script interactions with the blockchain. Key features of Foundry include:

Simplified blockchain development
Pre-built integrations
Customizable templates
Enterprise-grade security features
ConsenSys support

The key components of Foundry are Forge (Ethereum testing framework comparable to Truffle and Hardhat), Cast (tool for interacting with EVM smart contracts, managing transactions, and retrieving chain data), and Anvil (local Ethereum node, akin to Ganache or Hardhat Network).

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The Graph

The Graph stands as a decentralized protocol and indexing service designed for the querying and organization of data sourced from blockchains and decentralized networks. This innovative platform empowers Web3 startup developers to construct robust, scalable, and data-centric applications without relying on centralized servers or proprietary APIs. Key features of The Graph encompass:

Decentralized querying and indexing
Composable data indexes (Subgraphs)
GraphQL API
Decentralized network for data processing
Cross-chain compatibility

Through its provision of a standardized, open-source, and decentralized approach to accessing on-chain data, The Graph significantly streamlines the development process, fostering innovation within the blockchain ecosystem.

OpenZeppelin Defender

OpenZeppelin is a comprehensive suite of open-source Web3 security tools, libraries, and frameworks meticulously crafted to aid developers in crafting secure, reliable, and scalable smart contracts and decentralized applications (dApps) across various blockchain platforms, with a primary focus on Ethereum. Key features of OpenZeppelin encompass:

Reusable and audited smart contract components
Solidity libraries
Upgradable contracts
Security audits
OpenZeppelin Contracts Wizard

This platform strongly emphasizes offering reusable and audited smart contract components, streamlining development processes, and mitigating potential security vulnerabilities.

Alchemy

Alchemy is a robust and reliable infrastructure provider, offering developers convenient access to Ethereum, Polygon, Optimism, and other blockchain networks. It eliminates the need for setting up and maintaining individual nodes. Key features of Alchemy encompass:

Multi-chain support
Feature-rich API
Easy integration
Secure environment for interacting with different blockchain networks
Comprehensive dashboard and analytics

The core objective of Alchemy is to streamline the development and deployment of decentralized applications (dApps) by furnishing a secure, user-friendly API for interacting with diverse blockchain networks.

Orderly Network

Orderly Network represents a fusion of an orderbook-based trading infrastructure and a resilient liquidity layer that encompasses both spot and perpetual futures orderbooks. Diverging from conventional platforms, Orderly Network doesn’t feature a traditional front end; rather, it operates as the backbone of the ecosystem, delivering vital services to projects constructed atop it. Key features of Orderly Network encompass:

Unified orderbook and liquidity
Quick & easy development
Ready-to-use liquidity
CEX-level performance
Self-custody
Collaborative ecosystem

Its DEX white-label solution is meticulously designed to optimize time and capital for developers while providing access to meticulously established liquidity. By the way, IdeaSoft team continously working on Orderly Network back-end technology and infrastructure layers.

Chainlink

Chainlink operates as a decentralized oracle network. It acts as a crucial bridge between smart contracts and real-world data. Key features of Chainlink include:

Decentralized oracle network
Data feed aggregation
Customizable oracle nodes
External adapter support
Blockchain agnostic

It facilitates secure and reliable interactions with off-chain data sources, APIs, and diverse resources, significantly enhancing the capabilities of smart contracts.

Moonbeam

Moonbeam stands as a smart contract platform designed to empower developers in building and deploying Ethereum-compatible decentralized applications (dApps) on the Polkadot network. This platform streamlines the development experience by providing a set of Web3 tools, libraries, and APIs that are familiar to Ethereum developers. This way, it facilitates a smooth transition of projects to the Polkadot ecosystem. Key features of Moonbeam encompass:

Ethereum-compatible smart contract platform on Polkadot
Familiar tools, libraries, and APIs for Ethereum developers
Cross-chain communication
Scalability and on-chain governance

Moonbeam’s overarching goal is to bridge the gap between the Ethereum and Polkadot networks.

Web3.js

Web3.js is proudly one of the best Web 3.0 tools. It is a widely adopted JavaScript library that empowers developers to engage with the Ethereum blockchain and construct decentralized applications (dApps). It functions as an interface to Ethereum’s JSON-RPC API, enabling developers to execute diverse actions. Key features of Web3.js include:

Seamless interaction with the Ethereum blockchain
Easy account management
Event subscriptions feature
BigNumber support
Integration with development tools like Truffle and Remix
Comprehensive documentation

Web3.js is great for querying the blockchain, sending transactions, and working with smart contracts.

How to Choose The Best Web3.0 Developer Tools for Your Startup

Choosing the right Web3 developer tools for a startup is a critical task that requires careful consideration. While navigating the plethora of options available can be challenging, our experienced team, especially during the discovery stage, is adept at streamlining this process for you. With a keen understanding of the intricacies involved, we meticulously select the most optimal stack of Web3 tools for startups tailored to specific needs.

Web3.0 Development Case Studies

At IdeaSoft, we have a lot of diverse experience in developing Web3.0 projects. We know how to design a Web 3.0 app, how to launch a DeFi crypto exchange platform while ensuring AML & KYC compliance in crypto, and much more. Our scope includes NFT, marketplaces, crypto wallets, and over 10 other domains. Here are 3 successful Web3.0 development case studies worth your attention.

Asymetrix

At IdeaSoft, we have successfully implemented the Asymetrix protocol, an innovative decentralized and non-custodial platform. It enables users to stake their stETH with a distinctive method of generating yields.

Using the Asymetrix Protocol, users can participate in the staking process without relying on centralized entities to hold their assets. Instead, they have full control over their funds while benefiting from the unique yield generation mechanism offered by the protocol.

Creating a sophisticated system for distributing prizes, adaptable to platform performance and scalability, involved various challenges. Our team carefully considered factors like user engagement, staking amounts, and platform growth to guarantee equitable rewards. Maintaining a delicate equilibrium between flexibility and precision was vital for ensuring user satisfaction.

Also, crafting a secure platform to safeguard user data introduced further hurdles. It necessitated the implementation of strong encryption, stringent access controls, and routine security audits to thwart potential data breaches, hacking incidents, and other cyber threats. A harmonious blend of user-friendly features and robust security measures is crucial for establishing trust and protecting user information.

Dollet

Our team has experience in non-custodial wallet development. We developed Dollet Wallet – a revolutionary product designed to empower users with effortless management of their holdings across multiple blockchain networks. The project’s core objective was the integration of DeFi strategies into a non-custodial crypto wallet. Our main task was to develop a multi-chain wallet, an admin panel for DeFi strategies management, and customizing smart contracts per specific requirements.

Of course, there were some challenges on this project. Creating an administration dashboard for managing DeFi strategies, integrated with wallet functionality, was a significant undertaking. This involved designing and implementing a panel that facilitates seamless management of various strategies and ensures secure access.

Competing in product user experience (UX) was also a central challenge for the development of Dollet. The goal was not just to match the features of competitors but to consistently surpass them in terms of UX. Given the rapid evolution of the landscape, the wallet must stay abreast of the latest trends while allowing for the effortless integration of new functionalities.

The challenge of establishing a robust legal framework and facilitating the transfer of intellectual property rights was critical. This required meticulous attention to detail in creating contractual agreements that protect the interests of both parties. The legal structure should enable a smooth transition of intellectual property related to the project, ensuring a secure and fair transfer.

N-finity

Another of our Web3.0 development case studies is marketplace N-finity — an online platform with the opportunity to sell and buy non-fungible tokens (NFTs) on NEAR Network. This platform has a unique collateral mechanism called FAT, significantly decreasing trade risks. It’s a type of minimum sale price guarantee that increases with each transaction.

With this Web3.0 project, we had one challenge. The blockchain market, by nature, faces liquidity challenges that demand increased trading activity and motivation for traders. It was difficult for us to implement FAT logic in the N-finity Marketplace. Nevertheless, we successfully solved this challenge and implemented this project in 2 months.

Summary

Web3.0 startup development tools are multiple and ever-changing. Armed with the right tools and knowledge, the experienced development team can construct robust, secure, and user-friendly Web3 projects.

You can always be sure of our expertise and maximum efficiency. We also leverage account abstraction Ethereum capabilities to enhance security and streamline user interactions. When developing Web3 projects, we ensure that the chosen Web3.0 development tools align seamlessly with long-term growth. Feel free to contact us and discuss the details of our future collaboration!

Blockchain

Software

IT Consulting

Design

Blockchain

Software

IT Consulting

Design

How Can We Help?

Understanding UX and Its Impact on dApp Users

12 Key Principles of UX Design for Conversion Optimisation

3 Practical UX Design Tips for Boosting Website Conversions

Use a clear CTA button

Eliminate your 404 errors

Use authentic images

How to Measure the Impact of UX on Conversion Rate

Summary

Which are the popular AMMs?

The Basics of Decentralized Exchanges (DEXs)

How AMM-based DEXs Work

Advantages of AMM-based DEXs in comparison to CEX

How to create AMM DEX?

Challenges and Risks with AMM-based DEXs

Impermanent Loss for Liquidity Providers

Issues of Slippage in High Volatility Periods

Smart Contract Vulnerabilities and Security Concerns

Regulatory Uncertainties Surrounding DEXs and AMMs

Summary

Unveiling ERC-404: Disrupting the Future

Key Features and Objectives

Potential Impacts of ERC-404 on the Current Landscape

Risks of ERC-404

Use Cases and Applications

DeFrogs ($DEFROGS)

Rug ($RUG)

Froggy Friends ($TADPOLE)

Crystal ($CRYSTAL)

Bakery404 ($BAKE)

DN-404: Market Reaction to ERC-404

Summary

What is Farcaster?

Understanding Farcaster Frames

Components and Tools for Building Farcaster Frames

Step-by-Step Guide: How to Build Farcaster Frames

Why Farcaster Frames are Essential for Your dApp

Enhanced Embeds

Integrated Embeds

Sponsored Interactions

Use Cases and Examples

Summary

Understanding Restaking Concept

How Does Restaking Differ From Regular Staking?

What Problems Is Restaking Trying to Solve?

Unified security through restaking

Free market governance

How Crypto Restaking Works

Benefits of Restaking

The Most Popular Restaking Protocols

Ether.fi

Puffer Finance

Kelp DAO

Case Study: Dollet Wallet and Released Restaking Feature

Summary

Understanding Web3.0 Development Costs

How Much Does Web3 Application Development Cost?

How to Optimize Web 3.0 Costs: Our Recommendations

Invest in the proper discovery phase

Opt for outsourcing teams

Make small increments as often as possible

Choose experienced developers as they make less ineffective actions

IdeaSoft Web3.0 Case Studies

Asymetrix

Dollet Wallet

Rainmaker Games

Summary

Key Features of Account Abstraction

Key features of account abstraction in crypto wallets:

ERC-4337: The Engine of Account Abstraction

Why Is Account Abstraction an Awesome Solution For Crypto Wallets?

Examples of Crypto Wallets with Account Abstraction