This opinion piece argues that web3 wallets are a crucial barrier to mainstream adoption due to their current security model, which relies heavily on outdated seed phrase storage practices. The author highlights how these vulnerabilities have led to high-profile exploits and emphasizes the need for innovation in wallet design. While some institutional investors like ETFs have shown interest in crypto, user experience continues to be the biggest obstacle. 2023 saw a surge in ETF inflows for Bitcoin and Ethereum, suggesting a willingness to invest in crypto but an aversion towards the complexity of wallets. The author argues that this preference is driven by user experience. 1) Poor UX hampers adoption as users are discouraged from exploring crypto due to fear of technical difficulties and loss of funds. This disconnect between investor demand and wallet accessibility poses a major challenge for Web3’s future. The piece suggests, however, that new technologies like threshold signatures and seedless recovery methods can revolutionize wallet security and ease the complexity of user adoption. Finally, it calls for change in wallets to meet users’ needs, emphasizing the need for both security and intuitive design. The author concludes by advocating for a shift towards self-sovereign custody as a means to unlock the full potential of Web3. 2) The author’s own company Vultisig is also highlighted and emphasizes their focus on secure, user-friendly solutions.