How to Onboard the

Next Billion Users

WEB3

REPORT

Unlocking the Secrets to User Engagement:

Strategies to Build User-Centric

Decentralized Applications
INTRODUCTION 01

Web3 offers a vision of a more open,

transparent, and participatory
online environment for everyone.
Operative word: everyone.
And here lies the hard part - it is often cited that user experience (UX)
challenges are one of the major barriers to realizing the full potential of on-
chain applications. As we prepare to onboard the next billion users - a group
that will be incredibly diverse and global - it becomes crucial to
comprehensively grasp how they experience and navigate this process.

As Web3Auth deepens on our mission to bring Web3 authentication by

creating tools that make the onboarding process simple and familiar for the
users, it inevitably led us to the task of exhaustively researching on Web3 UX.

With the store of data that we currently have, along with existing secondary
research on the industry in general, we have extrapolated insights that we
hope you will find useful in the apps that you build as you consider your users.

In this report, we’ll be bringing clarity to what goes into the Web3 user
experience, tracing from its current state to the forces that are shaping the
dynamics, to its probable direction. In many of the sections, we are providing
builders with research-backed actionable steps to simplify their UX,
consequently enabling anyone to effortlessly tap into the decentralized web
and all the benefits it offers.

The opportunity of crypto is huge for everyone, and this is us contributing our
share to onboard more people into this extraordinary technology.

Web3 UI/UX Report 2023

INTRODUCTION 02

How This Report is Structured

This report breaks down Web3Auth’s survey findings into the stages of a user’s onboarding
into a Web3 application:

Methodology
How are all these data sourced and treated? Who are the
respondents and how did we collect information from them?
This short section talks about the researches that supported
the insights presented in this report.

Awareness Conversion
Who are Web3’s current users, After user onboarding, what
and what brought them here? behavioral trends define the Web3
What are they using? What are UX today? Which tools are
their blockers? What will the next developers using? Should you hop
generation of Web3 users be like? on the trend?

Web3 UI/UX Report 2023

Section 1

Methodology
Everything you need to know about this

research, including where the respondents

came from and how we gathered the data and

derived insights from it

Methodology 04

How is this data sourced

Both qualitative and quantitative approaches are used in our survey with a specific
focus on three distinct segments: Web3 users, developers, and founders (decision-
makers). Each set of questions is crafted to delve into the participants' demographic,
behavioral patterns (including their utilization of blockchain apps, development
practices, or decision-making processes), and their perspectives on Web3
technology.

Our survey spanned from January 2023 to December 2023 and covered a broad
spectrum of demographics, encompassing 3378 participants from regions all over
the globe, including APAC (2707 respondents), the United States (208
respondents), Europe (380 respondents), and others (83 respondents).

2.4%
11.2%
41.5% India
6.2% 26.7% Singapore
41.5%
9% Vietnam
9% 6.2% United States
11.2% Europe
2.4% Others

26.7%

Web3 UI/UX Report 2023

 Methodology 05

More on the respondents

Our respondents comprise three main segments: Decision makers (27%, 912 respondents),
Developers (38%, 1283 respondents), and Users (35%, 1183 respondents). Each of these
segments received a different set of questions, with all sampled groups composing of a
diverse, global demographic:

Others Others
Others 5.6% 5.1%
16.1%
Europe Europe
APAC 16.8%
37% 18.2%

United States APAC

Europe United States 9.7% 68.4%
22.9% 10.5%
APAC
65.8%
United States
24%
Decision Makers Developers Users

Many of the numbers in this report were gathered from Web3Auth’s on-the-ground
research and online channels. This involved engaging with a diverse range of Web3 user
personas worldwide, systematically learning firsthand about their interactions with dApps,
and identifying emerging patterns by adopting a broader perspective.

To complement the data we gathered through the survey, we also drew upon an array of
existing research to give a fuller picture of the current Web3 UX landscape.

Web3 UI/UX Report 2023

Section A

Awareness
We delve into how crypto awareness is
influencing the design of decentralized
applications, examining where current Web3
users originate and the factors driving their
decision-making processes. This section
addresses whether dApps should cater to crypto
natives or target mainstream users, providing
guidance on effective strategies for both
approaches.
Awareness 07

Who are applications building for?

Developers are Gradually Creating Apps for Mainstream Users

About 73% of developers are working on a product that addresses users with little to no
knowledge about Web3, with the same percentage prioritizing UX as their top priority
during the development cycle.

Which demographic are you building for?

73% 66% 29%

Mainstream users Crypto Natives Technical Users

(limited to no knowledge (Developers)
about Web3)

Decentralized applications that aim to cater to everyday users are not a new concept, but
it became more apparent that there is a mass market to be conquered with the explosion
of SocialFi and different NFT use cases, utilizing Web2 platforms as a gateway to Web3
adoption.

Existing Web3 platforms are starting to shift their UX strategy for

mass adoption
The largest NFT marketplace, OpenSea, has started to provide the option to sign up
through email and passcode, practically enabling users who don’t have a wallet yet to buy
and sell in the marketplace without the hassle of setting up a crypto wallet. 

Similarly, popular Web3 gaming projects like SkyMavis’ Axie Infinity and Animoca Brands’
Mocaverse have begun implementing email authentication and embedded wallet
interfaces, making these decentralized apps feel more familiar to Web2 users.

Web3 UI/UX Report 2023

Awareness 08

The cryptonatives: who are using

decentralised applications?

Majority of users have 1-3 Years of experience in using dApps

42% of current users have already built their muscle memory with common user flows
in crypto, while a significant 36% are even more experienced, with 4-6 years of
experience. However, the key to onboarding the next billion users lies in expanding
stickiness with the 13% of users with less than a year of experience. This can be
achieved through creating flows that are already familiar to them, such as social sign-
ins and in-app wallet interfaces.

Experience patterns in
crypto wallet users
The majority of users prefer to use
2-5 wallets. Some enjoy Degens on Web3 are also
experimenting and trying out degens on Web2
different wallets on various 64% of users are utilizing Web3
platforms, chains, or layers.

primarily for crypto investments,

making it the most popular utility.
Those with less crypto experience Additionally, 59% are using it for DeFi
typically have between 2-5 wallets, transactions, 45% for NFT trading,
while more experienced users tend and 41% for gaming activities.

to have between 5-10 wallets. As

users gain more experience, they On another note, 52% of crypto
tend to accumulate more wallets.

investors also hold stocks, while 35%

own NFTs. This suggests that the
At least 15% of users have more early adopters of blockchain are
than 20 wallets. Additionally, some mostly motivated by investment
users reported owning throwaway opportunities. [1]
wallets or wallets within wallets.

1. Cradl.org.(2023). “Onboarding to cryptocurrency.” Web3 UI/UX Report 2023

Awareness 09

Building for mainstream? Some

personas to consider
Most of the current Web3 users, developers, and decision-makers fall under the same
category: the cryptonatives. But to onboard the next billion users, many builders have
set their sights on going beyond building for crypto.

“The big talent unlock in my opinion is creating crypto applications that are
consumer-oriented…driven by consumer apps that are powered by crypto, but
users won’t know it’s crypto unless they look closely.”
- 0xDesigner

In our surveys throughout the year, our respondents gathered into several main
categories and personas. These include:

Common personas from 361 respondents

The Cryptonative Normie Web3-averse

Is either a degen, an NFT trader, a Thinks that crypto is the metaverse Will only use Web3 if it’s a matter of
tech enthusiast, or all of them. He and dabbles with NFT games, but he life and death and if everyone else is
roamed and built on Web3 during is not interested in learning using it. He will not try anything that
early times.

complicated jargon and processes.

mentions crypto.

Who is designing for them:

Who is designing for them:
Who is designing for them:

Most DeFi applications like Uniswap.


 Most GameFi and NFT marketplaces Enterprises with loyalty points
like Axie, Beam, Opensea, etc. system and collectibles like
Starbucks, McDonalds, and Disney.

The Curious Artist The Financial Refugee The Gamer

The creative who is looking for a His country's economy is on the He prioritizes in-game experience
way to protect their creations and brink, and inflation has reached and prefers to avoid Web3 elements.
monetize them in an equitable way.

insane levels. Therefore, he is using He is cautious of how Web3 aspects

cryptocurrency both as a hedge and might transform games into
Who is designing for them:
as a means of exchange.

experiences akin to gambling.

Specialized NFT Marketplaces like

Sound.xyz. Who is designing for them:
Who is designing for them:

On-ramping and Off-ramping Specialized game ecosystems like

solutions.

 Mocaverse.

Web3 UI/UX Report 2023

Awareness 10

Perceived security is the biggest hurdle to

using Web3 applications for mainstream
users

48% of respondents believe that the biggest barrier to adoption is security concerns
and risks to people’s assets, while 29% of them are burdened by high transaction
costs.

Considering that 32% of users prioritize security, it would be best for dApps
to incorporate security assurances into their most crucial screens.

What do you think are the biggest hurdles for users in Web3?

Security Concerns and Risks 32%

High Transaction Costs 29%

Learning Curve for Blockchain Technology 24%

Lack of User-Friendly Interfaces 24%

Complexity in Managing Private Keys 19%

Regulatory Uncertainty 18%

Limited Adoption and Accessibility 9%

Interoperability Challenges Across Platform 9%

Insufficient Education and Resources 7%

Scalability Issues in Blockchain Networks 5%

The other most common hurdles mentioned are high transaction costs (29%), the
learning curve for blockchain technology (24%), the lack of user-friendly interfaces
(24%), and the complexity of managing private keys (19%).

Web3 UI/UX Report 2023

Awareness 11

You are building for an aware and

polarized crowd

A huge majority of the population, about 92%, already knows about crypto, although
only 24% are familiar with the concept of Web3. [1]

Geographic polarization
Attitudes towards cryptocurrency vary globally, with noticeable differences between
wealthier nations in Europe and Asia, such as Japan and South Korea, and developing
nations in Southeast Asia, South America, and Africa. Wealthier nations tend to exhibit
skepticism towards cryptocurrency, often associating it with negative concepts like
scams, money laundering, and speculation. As a result, they adopt a cautious and
reserved stance towards its adoption.

On the other hand, developing nations generally have a more positive view of
cryptocurrency. They see it as the future of money, representing digital ownership and
offering alternatives to traditional financial systems. This positive association is
particularly strong in economically unstable countries like Argentina and Nigeria, where
cryptocurrency is embraced as a crucial tool for accessing global capital and
protecting against inflation. [1]

Industry polarization
Despite one-third of crypto usage being in gaming (1.2 million daily unique active
wallets as of November 2023) [2], a survey by the Game Developer Conference
reported that over 75% of game developers are not interested in blockchain. [3] While
the disparity indicates there’s a clear market and growing demand, most game
developers remain skeptical. There’s a huge opportunity to bridge this gap through
education and the development of more developer-friendly blockchain tools.

Game developer sentiment towards blockchain technology

75% 61% 12% 4%

Not Interested Opposed In Favor Using It

1. Consensys.(2023). “The State of Web3 perception around the world.”

Web3 UI/UX Report 2023
2. DappRadar.(2023). “DappRadar November Industry Report.”

3. Game Developers Conference.(2023). “State of the Game Industry 2023.”

Section B

CONVERSION
Now that we have a clear understanding of who
the users are, what they know, and how they
think about web3, it’s now time to build for
conversion. This involves exploring the tools
available right now, understanding the behavioral
trends, and determining how to use them to gain
wider adoption.
CONVERSION 13

The rise of going seedless

What tools are currently available to make user onboarding easier?

Keeping and managing private keys has been one of the most tackled bottlenecks of

UX and security in 2023, and it is no wonder, as 39% of respondents have reported

losing access to their seed phrase.

Cutting-edge solutions such as Account Abstraction, Multi-Factor Authentication via

Multi-Party Computation (MPC), and the use of Passkeys are transforming the Web3

wallet experience. These innovative approaches, when integrated, can significantly

streamline and enhance user interactions in the Web3 space.

Account Abstraction MPC Wallets

AA or ERC-4337 allows users to use MPC Wallets divides private key

smart contracts as their accounts. between many parties like the user’s

Users can carry out automated and social login, reducing the risk of

sponsored blockchain transactions unauthorized access while also

while still being in full control of their being convenient for the user

accounts.
because they don’t have to keep the

wallet keys.

Passkeys Embedded Wallets

Passkeys are passwordless sign-ins Embedded wallets are wallet

by having the credential stored on interfaces that naturally sits within

the user’s device. It is used to sign the website or application so that

transactions through biometrics, there is no need for browser wallet

PIN, or pattern. Passkeys are also extensions to interact with the

immune to phishing attacks.

blockchain.

Web3 UI/UX Report 2023

CONVERSION 14

The buzz word: Account Abstraction

Account Abstraction, also known as ERC-4337, has been extensively discussed within

development communities. While it is notoriously complex, or at least not beginner-

level, interest in the subject continues to grow.

Interest over time

100

75

Note
50

25

6th Jan 2019 5th Jul 2020 2nd Jan 2022 2nd Jul 2023

Source: Google Search console, taken on July 2023

The following pros and cons were mentioned during focus group interviews with 12

developers who either use Account Abstraction (AA) or considered to implement it in

their applications:

Pros Cons

“We were able to onboard users “The complexity of ERC-4337

without having to ask them to create implementation takes some time to

a wallet.” understand and integrate.”(Solved

with SafeAuth)

“Sponsoring the gas fees helped “Assets inside a smart wallet is often

remove the friction in figuring out locked to be used within one

where to buy gas crypto.” application only.” (it can be resolved

with Web3Auth Wallet Ecosystem)

“The wallet interface sits naturally I’

“ t s expensive for the user.

inside our website instead of in Transactions made through smart

another frame.” accounts incur higher gas fees.”

“AA allows some customi z ations like I

“ t has limited backward

spending limits, account recovery, compatibility. We have to adjust our

and automated payments.” smart contracts to accommodate AA

wallets.”

Web3 UI/UX Report 2023

CONVERSION 15

On managing self-custodial wallets

Balancing between convenience and security

When choosing an authentication factor for their wallets, some users are concerned

about using biometrics due to potential security risks, while others fear losing their

phones, which could mean losing access to their wallets.

Meanwhile, the majority agree that using a recovery factor is the most secure option

for authentication. However, only 9% said they would use it because they don’t want to

risk recoverability.

Most would use Google as the primary authentication factor

for their wallets

When given choices for crypto wallet authentication, biometrics (36%) and

authenticator app codes (32%) emerged as the top two selections due to their

convenience.

Among social authentication methods, Google is the most popular, used by 57% of

Web3Auth users. Email (29%), SMS (4%), and X (3%) are also widely used for

accessing their MPC wallets.

57% 29% 4% 3% 7%

Google Email SMS X

Others

(Formerly Twitter)

Web3 UI/UX Report 2023

CONVERSION 16

Enough web, mobile first, folks

Majority of users access dApps from an Android device (yet most

devs test on browser)

When asked about the devices they use

for Web3, 68% of respondents say they

 

interact through an Android device.

However, decentralized applications are

Devices used mostly designed for computer-sized

to access screens, with experiences centered on

dApps navigating browser extension wallets.

This web-first paradigm may have

originated from early developers in the

20% space, as developing for computer

59%
screens is more convenient for them.

68%

68% Mobile Android 59% Web Browser

20% Mobile iOS

Since most users view content from an Android mobile device, it's crucial

to design interfaces that are easily navigable on mobile.

20% of developers are inclined to design for computer screens first before designing for

mobile. Additionally, 67% will be testing on web browsers. However, the silver lining is that

79% will also implement mobile-responsive features to make their dApp still usable on

smaller devices.

Web3 UI/UX Report 2023

Developers 17

Popular onboarding developer tools

Which libraries are developers’ favorites?

OpenZeppelin and Ethers.js emerged as the most popular libraries used by blockchain
developers at all levels. Many developers tend to gravitate towards EVM development
due to the easy availability of information about it.

82% 58%

80% 56%

58% 55%

Most popular packages for wallet sign-ins

When it comes to choosing the modals for connecting user wallets, most would use
web3-react. The second most popular library is web3modal, followed by rainbowkit.

web3-react web3modal rainbowkit

4,692,021 3,774,805 2,987,923

npm installs npm installs npm installs

The following snapshots were taken on December 2023 through npmjs.

Web3 UI/UX Report 2023

FINAL THOUGHTS 18

Where are we heading in 2024?

Bringing mass adoption to Web3 requires

more than just technological advancements,
but also a UX renaissance.
If you're building a city, the first step is widening roads and
constructing more highways to ensure connectivity and
accessibility for everyone. Similarly, I believe that once we
make Web3 accessible and interconnected with our already
existing digital lives, the floodgates of Web3 traffic will open to
a wider audience.

On-chain isn't about reinventing the wheel; it's about adding a

layer of ownership and verifiability to an increasingly chaotic
internet, reintroducing humanity into the mix.

We are building Web3 to be comfortable for users and builders

alike– to seamlessly connect with their existing habits, tools,
and online identities. And we are committed to bringing this
vision to fruition in 2024.

Zhen Yu Yong
CEO, Web3Auth

Web3 UI/UX Report 2023

 Published by

Web3Auth is the leading Wallet-as-a-Service

(WaaS) provider that empowers every user to
manage a non-custodial wallet intuitively.

www.web3auth.io
Discord | X | LinkedIn | Farcaster
community.web3auth.io

This material is provided for informational purposes only and should not be construed as legal, financial, or investment advice. Recipients are advised
to consult their own advisors before making decisions based on this material.

Web3Auth does not guarantee the accuracy, completeness, timeliness, suitability, or validity of the information in this report and will not be liable for
any claim arising from errors, omissions, or inaccuracies in any part of the material.