Consensys Acquires Web3auth to Enhance Metamask User Experience, Eliminating the Need for Seed Phrase Backups

Consensys has announced the acquisition of Web3auth, a provider of key management and embedded wallet infrastructure, aimed at enhancing the user experience and security of its Metamask wallet. According to Consensys this acquisition addresses significant risks associated with seed phrase management, as recent data indicates that 35% of users do not back up their seed phrases, which can lead to fund loss. By integrating Web3auth’s technology, Metamask users will be able to create and recover wallets using familiar web2 authentication methods, such as social logins, thereby simplifying wallet management. For developers, the acquisition provides access to embedded wallet SDKs and key management infrastructure, facilitating smoother onboarding experiences and deeper integrations within the web3 ecosystem. Consensys aims to leverage Web3auth’s capabilities to onboard the next billion users to web3, while also expanding Metamask’s support for non-EVM chains and enhancing overall user safety.