What is WeFi's "Dual-Wallet Strategy" that pursues security with an approach different from traditional banks and exchanges?
Have you ever felt that "I want to use crypto assets daily, but I'm worried about security" or "There is a risk in leaving them on an exchange"?
WeFi proposes an on-chain banking model that aims to balance Web3 security with daily usability against the risks inherent in traditional "banks" and "centralized exchanges (CEX)."
At its core is a design called "Dual-Wallet (two wallet spaces)" that separates asset "ownership" from "access rights."
1. WeFi's fundamental philosophy: Separation of asset "ownership" and "access"
In conventional financial services (banks and exchanges), when you deposit money, the "ownership (or control)" itself shifts to the operator. Therefore, there has always been a risk that assets could be frozen or lost due to the operator's bankruptcy or misconduct.
To address this issue, WeFi is said to adopt a design that separates the following two layers.
Asset Ownership: A design where the user always retains control and legal ownership.
Operational Access: A design that grants only limited, rule-based transaction execution authority to authorized partners such as payment networks.
2. "Two wallets" to be used according to needs
WeFi is said to be designed so that users can use the following two wallets depending on their purpose.
① Decentralized Custody (MPC) Wallet [Daily Bank Account Type]
This is intended as a wallet for moving funds frequently, such as for daily payments, card purchases, and receiving income.
Mechanism: Adopts 2-of-2 MPC (Multi-Party Computation) technology. It is designed to keep fragments of the private key (key shares) distributed between the user's device and the provider's infrastructure.
Features: While aiming for usability (UX) close to traditional banking apps, it is designed so that WeFi alone cannot technically move the user's assets.
② Non-custodial NFC Wallet [Long-term Storage Vault Type]
Positioned as "cold storage" to protect long-term held assets (generational wealth: assets passed down across generations) that are not planned to be moved for several years.
Mechanism: Designed to use a dedicated physical hardware card equipped with an NFC chip.
Features: It is said that physically touching the smartphone with the card is required to sign transactions or unlock, and it is designed so that neither WeFi nor partner companies can access the private key inside the card.
3. Intentional Custody workflow
In WeFi, funds are designed to be treated as non-custodial (under the user's own management) in principle until the user explicitly takes action.
Phase 0: Infrastructure construction
A mechanism where a unique MPC wallet address is automatically generated for each user.Phase 1: Decentralized Custody (Default State)
When a deposit is made into the wallet, the system automatically detects it. At this stage, the design is such that funds cannot be moved without the user's explicit MPC signature.Phase 2: Custodial Deposit (Only upon user approval)
The design is such that "custody" (managed deposit) only begins when the user approves moving funds to the platform's vault in order to use high-yield products (investment services), etc.
Note that the use of high-yield products involves separate risks and does not guarantee returns.
4. Thorough Comparison: Traditional Banks vs. Centralized Exchanges vs. WeFi
Let's compare how WeFi differs from traditional systems in a table.
5. The "5 Basic Characteristics" that WeFi Aims For
Regardless of which wallet settings are chosen, the WeFi ecosystem is designed to ensure the following characteristics.
Unique On-chain Wallet: Assets are designed to be managed in individual user on-chain wallets rather than in exchange pool accounts.
1:1 Asset Backing: The design allows for real-time verification of asset backing status on a public blockchain.
Prevention of Unilateral Fund Transfers: The design aims to prevent WeFi from moving funds without the user's MPC signature or physical signature.
Prevention of Re-collateralization (Misappropriation): The design is such that deposited assets are not lent out to other users or pooled.
Flexible Balance Selection: The design allows users to choose their asset allocation, ranging from daily convenience (MPC) to cold storage (NFC hardware) focused on high security.
Note that these are merely descriptions of design features, and this does not eliminate risks such as price volatility, smart contract risks, or external factors associated with crypto assets and DeFi services in general.
Summary
WeFi is said to propose a form of finance that aims to balance the "ease of use" of traditional banks with the "self-sovereignty and security considerations" that are central to the philosophy of crypto assets.
While such a design philosophy has the potential to spread as one of the options for asset management in the coming Web3 era, specific functions and security must be continuously verified. Please be sure to check the latest official information when using the service.
Invitation Link Information
You can participate in cloud-based mining via the invitation link below.
👉【Join WeFi Now (Invitation Link)】
(You can change the language to Japanese by tapping the flag icon.)
👉【Check Registration Method on YouTube】
There is also an open chat exclusively for those who register via this link.
Please feel free to reach out if you have any questions.
* Please enter your username from your email address used for registration (the account name before the @) to enter the room.
* If your email address is the same as your LINE account, please shorten the character count when applying. However, please apply with at least 6 characters.
👉【Join the Exclusive Open Chat】
【Disclaimer】
This article is intended for the purpose of providing general information and creating educational content based on public information regarding the WeFi ($WFI) project.
The use of crypto assets and DeFi involves specific risks, including price volatility, smart contract bugs, and fraud (scams). Please make sure to make decisions regarding your participation at your own risk (DYOR: Do Your Own Research). The author assumes no responsibility for any disadvantages or losses incurred through the use of the information in this article.