The financial payments industry has experienced significant change and is now at a turning point with Web3 technology. PayPal, founded in 1998, revolutionized online payments with its security and simplicity. While protocols for transferring information and money are now intuitive, consumer banking apps still operate under the gated model of Web2. To encourage a more open financial system, Web3, an autonomous and decentralized network, has been gaining traction. Digital identity providers have emerged as a solution to simplify the process of sending and receiving payments.
Solutions such as the Ethereum Name Service, Unstoppable Domains, and Y.at offer human-readable addresses, permanent online identities, and emojis used as digital usernames, website URLs, and payment addresses. However, there are still challenges to overcome, such as the technical expertise required to utilize these existing systems, and the need for software that is user-friendly and accessible. While the current state of Web3 front-end applications may not yet be ready for mainstream adoption, the potential for an open financial system is significant.