What's the landscape of crypto wallets like in general?

Broadly speaking, crypto wallets can be categorised into four types: cold wallets, Externally Owned Account (EOA) wallets, custodial wallets, and Account Abstraction (AA) wallets.

• Cold wallets are hardware devices that store users' cryptos and digital assets offline. These wallets are controlled solely by private keys stored in the devices themselves, protecting wallets from unauthorised access and cyber hacks.

  Though cold wallets are considered safe, they are not advantageous in terms of cost as a wallet could cost several hundred dollars. Besides, wallets always staying offline leads to inconvenience because users need to physically carry them for usage.

• EOA wallets are a type of hot wallet which is also controlled by seed phrases or private keys, just like cold wallets, yet is always connected to the internet. Compared with cold wallets, an EOA wallet is cost-effective and userfriendly, because account creation is free and users don't need to carry wallets everywhere to use them.

  Nonetheless, managing private keys can be complex, and it poses security challenges. Users must memorise and safeguard their private keys or seed phrases to prevent potential loss, theft, or hacking. Considering that private keys and seed phrases are hard to memorise by human brains and are prone to leak/compromise if stored in computers/mobile devices, the management and storage becomes extremely challenging. If the data is lost or falls into the wrong hands, it's almost impossible to recover, making EOA wallets less suitable for Web3 novices and those with substantial digital assets.

• Custodial wallets are usually EOA wallets managed by organisations, like exchanges, on behalf of users. Though the wallet has a private key, users won't see it and hence don't need to manage it during the whole process. They access their wallets and assets by logging into their accounts on the custodial platform, often through registration info like email address.

  While custodial wallets offer a hassle-free experience, they come with risks related to the reliability of the platform. Users may be unable to access their wallets in emergencies, such as platform server outages or platform closures.

• AA wallets are self-custody wallets with customisable management, tailored to meet diverse user needs. Their standout feature, distinguishing them from other wallet types, is the complete absence of private keys in account management. Instead, users exercise control over their wallets through predefined methods, such as the innovative approach of social recovery.

In the case of Portkey, the AA wallet design introduces a host of distinctive features:

• Effortless registration: Users can create an AA wallet using everyday social information, such as email address, Google account, Apple ID, and Telegram account, ensuring a straightforward registration process.
• Enhanced security through social recovery: To bolster account security, actions like logging in on new devices require social recovery, which is done by obtaining approvals from user-appointed guardians. This adds an extra layer of protection to user accounts. Users have the flexibility to add multiple guardians, reducing the risk of a single point of failure.
• Zero-cost account creation: Portkey's account creation is entirely free for users. All associated fees are covered by delegatees, as designed in the unique payment delegation mechanism.
• Seamless asset management: Portkey empowers users to effortlessly transfer tokens and NFTs within the aelf blockchain, while also holding the potential to support tokens on other mainstream networks in the future.
• Fiat-crypto on/off-ramps: Users can conveniently purchase cryptocurrencies in Portkey with fiat currencies, and vice versa. This fosters the fluid movement of assets between the Web2 and Web3 realms.
• Diverse Web3 engagement: Portkey opens doors for users to interact with a wide array of Web3 DApps and projects, including games and NFT marketplaces, enriching the user experience.
• Advanced security measures: To fortify security and provide versatile services, Portkey offers advanced features like transfer limits and instant chats. Furthermore, Portkey is committed to an ongoing development roadmap, continuously elevating the platform's capabilities and user experience.

When compared to other wallet types, AA wallets stand out for the competitive advantages in terms of security, usability, cost-effectiveness, and the ability to tailor features to individual needs. Portkey, in particular, serves as an ideal entry point for users making the migration from Web2 to Web3 and, simultaneously, acts as an all-in-one solution for Web3 veterans with more intricate requirements.