How WalletConnect Works
article-5987

How WalletConnect Works

September 12, 2025 · 4m ·

What Is WalletConnect?

WalletConnect is an open protocol that links users' crypto wallets with decentralized applications (dApps) using simple methods like QR codes and deep links. By creating an encrypted session between a wallet and a dApp, it removes the need for browser extensions or manual address copying while keeping private keys safely inside the wallet. This makes onboarding to Web3 smoother for users and simpler for developers to integrate multiple wallets and blockchains.

How WalletConnect Works

The connection process is designed to be both simple and highly secure.

Connecting via QR Codes or Deep Links

To start a session, a dApp presents a QR code or a deep link. Scanning or opening that link pairs the dApp and the wallet and sets up an encrypted channel. After pairing, transaction requests appear in the user’s wallet, where they can approve or reject each action.

Security and User Control

The protocol never exposes private keys to the dApp. Instead, the wallet signs transactions locally and sends only signed data. Sessions are encrypted and can be ended by either party, putting control squarely in the user’s hands.

Blockchains and Interoperability Supported

WalletConnect is designed to be chain-agnostic. It supports major networks such as Ethereum, Solana, Polkadot, Cosmos, and Bitcoin, allowing dApps and wallets across different ecosystems to interoperate through the same connection layer.

The Core Architecture

The protocol rests on three technical pillars that make it flexible and developer-friendly.

  • Network of relay nodes: Messages between wallets and dApps are routed through a distributed set of relays operated by independent teams, which helps keep the system resilient and decentralized.
  • SDKs for developers: Software development kits let wallet and dApp teams add WalletConnect support without building the messaging layer from scratch.
  • Standardized message formats: Agreed-upon formats and rules ensure different wallets and applications can understand and validate requests consistently.

The WCT token

The ecosystem includes a utility token, WCT, launched as an ERC-20 token on the Optimism network. Its total supply is one billion tokens. The token plays several roles inside the network:

  • Governance: Holders can participate in decisions about protocol upgrades and network parameters.
  • Staking: Users can lock WCT to support the network and earn rewards. Staking periods vary from short commitments to multi-year durations, with longer locks generally offering higher incentives.
  • Performance rewards: Node operators and wallet providers may earn WCT based on service quality metrics like uptime, latency, and successful connections.
  • Potential fee utility: While the protocol may not charge fees now, WCT could be used for fee settlement in the future if the community chooses to adopt that model.

As part of its early distribution, 40 million WCT (4% of the total supply) was allocated to a public farming-style campaign to engage participants.

Wallet Certification and Developer Support

The WalletConnect team runs a certification program to vet wallets for security and user experience. Certified wallets display a badge, helping users identify trusted options. This is paired with extensive documentation and support to help developers integrate the protocol smoothly.

Adoption and Growth

WalletConnect is one of the most widely adopted protocols in Web3, having facilitated hundreds of millions of connections for tens of millions of unique wallets across thousands of dApps. This growth highlights the need for a simple, universal standard for wallet interoperability.

Funding and Future Development

A foundation supporting the protocol secured roughly $10 million through a series of token sales to fund operations, expand the team, and support ecosystem programs. That backing is intended to speed development of new features, improve node infrastructure, and grow integrations with wallets and dApps.

What This Means for You

For users, WalletConnect simplifies interacting with decentralized services while keeping private keys secure and under personal control. 

For developers, it’s a single, powerful integration that instantly makes your dApp compatible with hundreds of wallets across dozens of blockchains.

As staking, governance, and reward mechanisms mature, the protocol’s economic layer may further incentivize high-quality infrastructure and wallet support.

Getting Started: Practical Tips

  1. Use a wallet that shows a certification badge to reduce risk.
  2. Always confirm transaction details on your wallet before approving.
  3. Review staking options and lockup lengths carefully if you plan to stake WCT.