The early crypto wallet was mostly a key manager. You stored ETH, signed transactions, and hoped you did not approve the wrong contract. Today, the wallet is becoming an identity interface. A modern Web3 identity wallet can hold multiple DIDs, present a credential to a dApp, sign an EIP-4361 Sign-In with Ethereum message, and enforce access rules. It may also manage accounts across Ethereum, Polygon, Solana, and private enterprise chains.