WalletConnect is an open source protocol that allows you to connect your crypto wallet to decentralized applications (dApps) on the web. If you are using a self-custodial web3 crypto wallet, like the Bitcoin.com Wallet app, you can use your wallet to interact with dApps without having to grant access to your private keys.
For example, let's say you have ETH in your Bitcoin.com Wallet and you want to use a Decentralized Finance (DeFi) application on Ethereum called "ABC Finance" that enables to you to lend your ETH in return for programmatic interest payments. WalletConnect establishes a secure connection between your Bitcoin.com Wallet and ABC Finance, allowing ABC Finance to see the contents of your Ethereum Wallet. Then you'll have the option to, for example, send ETH from your Bitcoin.com Wallet to ABC Finance's lending smart contract. When you've decided how much ETH to send, your Bitcoin.com Wallet will ask you to approve the request.
Continuing with our example, from "ABC Finance's" website or app, you'll first select the Connect button. This typically brings up a list of connection options, one of which will be WalletConnect. Select WalletConnect and, if you're on mobile, choose the Bitcoin.com Wallet from the list of wallets to connect to. If you're on desktop you'll be presented with a QR code which you can scan using the Bitcoin.com Wallet's scan function. In both cases, the Bitcoin.com Wallet will ask you to approve the connection before proceeding.
Here's how it looks on mobile:
Here's a more detailed guide for using WalletConnect in the Bitcoin.com Wallet.
It's safe in the sense that it establishes a secure (encrypted) connection, with your approval, between your Bitcoin.com Wallet and the DApps of your choosing. It also requests your approval for any transactions and never gives DApps access to your private keys. In other words, when you connect to a DApp via WalletConnect, it's impossible for the funds in your wallet to be spent without your approval. That being said, any time you (purposely) send cryptoassets to a smart contract, there are risks (see below).
Read more: Common dApp risks and how to avoid them.
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