TL;DR
- MetaMask will integrate authentication via social logins and device-based methods, removing the exclusive reliance on seed phrases.
- Web3Auth brings its infrastructure for embedded wallets and key management.
- The acquisition boosts MetaMask’s multichain compatibility.
Consensys has finalized the acquisition of Web3Auth, a company specializing in wallet infrastructure and key management for Web3 applications.
The End of Seed Phrases?
This move aims to address one of the biggest risks currently affecting cryptocurrency management: the loss of funds due to users not backing up their seed phrases. Recent data shows that 35% of users don’t save a backup, leaving them at serious risk of losing access to their assets if that phrase is misplaced.
With this integration, MetaMask will adopt traditional authentication methods like social logins and device-based validation. The goal is to let users create and recover wallets without depending solely on seed phrases, lowering the risk of losing funds. The rollout will happen in phases, starting with developer solutions and later expanding to desktop and mobile apps.
The arrival of Web3Auth adds new tools to the table. From SDKs for embedded wallets to integrated key management infrastructure, all of it will work with MetaMask, Infura, and the Delegation Toolkit. This will simplify wallet creation inside apps and make onboarding easier for new users by avoiding technical barriers and manual backup processes.
MetaMask Moves Toward Multichain Compatibility
Beyond improving the user experience, the acquisition accelerates MetaMask’s plans to expand its multichain compatibility. The company has already announced upcoming support for Bitcoin and Solana, and with Web3Auth, it aims to optimize account handling and cross-network transactions.
Founded in 2019, Web3Auth serves nearly 50 million users and supports over 8,200 decentralized applications. Its integration will strengthen MetaMask’s position in key markets like Asia, where Web3 adoption is growing rapidly.
Consensys has acquired several firms in recent years, including Wallet Guard, Hal, and MyCrypto. The company’s goal is to deliver a safer, more accessible user experience while equipping developers with comprehensive tools to build better and more versatile applications
