What kind of exposure people need in order to be more willing and proud to take the responsibility of managing their keys and ultimately owning their own data.
What is their current state of knowledge?
How could you reward those people socially, financially or other ways to do so?
Be as precise as you could.
From what I’ve personally seen, the most promising approach to dealing the overhead of managing keys is through progressive self custody that leverages account abstraction. This is helpful for users that are newcomers to the crypto / web3 paradigm. It allows them to create a wallet using their email address, web2 social accounts, phone number etc. This allows them to start using the dapp immediately and to start becoming comfortable with it.
Subsequently they can be prompted to graduate to more secure forms of self-custody, such as through installing a wallet (mobile and/or browser) and by nominating guardians, both institutional and friends + family, in order to protect against loss + leak of keys. Eventually they will become familiar with hot wallets / cold wallets, clusters / ENS etc. but it’s a progressive journey.
But developers, researchers and product managers need to think about making it secure for people without requiring a steep learning curve, especially in the identity space. Traditional identity theft is bad, but in the long run, web3 identity theft could be much worse. Thankfully, there have been efforts towards moving away from “write down your secret recovery phrase and keep it in your sock drawer in a secure location”.