As a crypto currency enthusiast – I am constantly amazed around the advances in the field. Whether it be new tokens that are launched, NFTs, or even how it is being applied to the concept of the metaverse – the pace of evolution of the technology is mind boggling. However, with these advances – a significant chunk of the general population is being left behind because, well, crypto and its associated advances is not an easy concept to grasp. Now wouldn’t it be great – if there was some tech that made it easier for people to take advantage of the advances beyond speculating on the prices of coins. This is where the Rainbow Wallet takes an admirable shot at doing so… before I dig into the app and its associated features, let me start with a bit of a primer on Ethereum
“Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether (ETH or Ξ) is the native cryptocurrency of the platform. Amongst cryptocurrencies, Ether is second only to Bitcoin in market capitalization.
Ethereum was conceived in 2013 by programmer Vitalik Buterin. Additional founders of Ethereum included Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin.” – Wikipedia
One of the many advances that Ethereum has brought to the crypto world is the ERC-20 token. Think of it as a set of rules/platform that can be used to create smart contracts, NFTs or even create your own coin. This has essentially created an ecosystem of products on the Ethereum network that can serve many different purposes.
Now if you though the crypto ecosystem was huge – keeping track of the Ethereum ecosystem and all its benefits is a fulltime job in itself. If only there was an easier way…
This is where Rainbow Wallet comes into play. The Rainbow wallet is an app that was created by crypto enthusiasts Michael Demarais and Christian Baroni. The goal was to make investing in crypto – specifically on the Ethereum network – accessible to the masses. There are many innovations that the app brings to the table – but perhaps first and foremost – is a user-centric design philosophy that aims to simplify the user experience of taking part in the Ethereum ecosystem.
In the next few sections, I am going to go over some of these usability features that I found quite excellent.
Creating a Wallet
A wallet, in the crypto world, is not something that holds your crypto currencies but rather it holds a unique private key that serves as proof of digital currency that you own. Without the wallet, you can not lay claim to the crypto currency that you have traded. Hence its really important to keep this wallet secure. There are multiple mechanisms available for you to do so such as hardware, usb drives, or cloud storage.
The way Rainbow enables wallet creation is the combination of a wallet password and an iCloud backup or through a secret phrase and a manual backup.
Backing up to iCloud is integrated natively into the app.
Depositing Funds into your wallet
Now once your wallet has been setup, the next step is to fund it – specifically with Ethereum Tokens. The Rainbow app has integrated funding options with a company called Wyre that allows you to transact via Apple Pay to purchase tokens.
Once a wallet is created, these screens greet you:
On top of that, the app limits how much Ethereum you can buy to $500 a week/$5000 a year. This also makes it ideal for the crypto-curious to get started without the fear of losing your life savings.
Note: Since Wyre is an independent company from Rainbow, if you run into any issues funding your wallet – you will be directed to Wyre support. Your bank may have issues transacting with wyre and may block your purcase. Alternatively, you can purchase your ether on a traditional exchange such as coinbase or Gemini and transfer it to your rainbow wallet.
Navigating the Ethereum ecosystem with the Rainbow App
Now this is where the app really shines – as mentioned earlier – is how it opens up the Ethereum ecosystem to your fingertips – literally.
Here is a view of the liquidity pools that you can partake in – thanks to a nifty integration with Uniswap:
Now there are many more features to cover and the Rainbow app is constantly innovating – but hopefully this has short post has given you some insight.
How the Rainbow App generates revenue
In case you were wondering how Rainbow generates revenue – at the moment – they do not serve ads or collect user activity. Instead, it gets a commission from Wyre – the payment – service whenever somebody uses it to deposit funds into a Rainbow wallet. They also are working on a swap aggregator that will find the best prices on a token exchange and take a small percentage from transactions via the app.
I think the Rainbow Wallet does a pretty good job on taking a stab at Crypto (and specifically Ethereum) investing to the masses. Now you still need to be somewhat familiar with Crypto – and this is where I think the Rainbow App can do a better job. I would love the app to have built in tutorials/short video explainers on the various aspects of Ethereum such as NFTs, Liquidity Pools, Verified/Unverified tokens etc so that it becomes more apparent on what you are seeing in the app.
You can find more information on the Rainbow Wallet at https://rainbow.me
If you have any thoughts on the Rainbow Wallet or Crypto Investing in general, I’d love to hear it below.