🔮 Why Hybrid Custody is the next BIG thing

Hybrid Custody could have a phenomenal impact in bringing mainstream users to Web3.

It excited our team as much as using Uniswap and NBA Top Shot for the first time.

Here's a simple explanation.

The problem

Applications having their own custodial wallets is arguably the most seamless user onboarding experience.

But this comes at the expense of interoperability & decentralization. These are two of the most important aspects of Web3.

The solution

Hybrid custody solves this 🧠

Users can be onboarded to an application through an app's own custodial wallet.

This means they can signup with the app's standard sign in (email/password or social sign in). Then frictionlessly buy or claim an NFT.

And then if the user wants the benefits of Web3 i.e. true ownership, trading, or use their NFTs in third-party applications they can later delegate control of the custodial application wallet to their own crypto wallet. i.e. Blocto, Lilico or Dapper on Flow.

Now they can use their Blocto, Lilico or Dapper wallet to control the NFTs stored in the custodial application. Literally buy, sell these NFTs etc. using their own wallet and all relevant changes (purchases, sales) will automatically be reflected on the application side

With Hybrid custody there is no need to 'export' / transfer NFTs from a custodial application to a crypto wallet back and forth.

Your crypto wallet has control of the NFTs in your custodial wallet.

BOOOM.

The benefits of Web2 onboarding + Web3 achieved.

Bottom Line: Hybrid Custody may be about to change the game for onboarding the mainstream to Web3.

Hybrid Custody was proposed by @dete73 who also created the ERC-721 standard on Ethereum. You can learn more about it here.