Consensys has acquired the crypto wallet infrastructure provider Web3Auth, a move poised to significantly enhance the user experience for its flagship crypto wallet, MetaMask.
Announced in a June 2nd blog post, the acquisition, details of which remain undisclosed, underscores Consensys’ commitment to tackling one of the most significant hurdles in self-custody: seed phrase management.
The core issue? A staggering 35% of crypto wallet users risk losing their funds due to inadequate seed phrase backups – the very key to accessing and controlling their digital assets.
Web3Auth’s integration promises a game-changing solution. MetaMask users will soon be able to recover their wallets using familiar authentication methods, including device-based authentication and social logins. This strategic move aims to lower the barrier to entry for new users and provide a more seamless experience for existing ones.
The integration will be rolled out gradually, with plans to incorporate multifactor user onboarding to further fortify security measures. This phased approach ensures a smooth transition and allows for iterative improvements based on user feedback.
This announcement follows MetaMask’s earlier declaration of expanding its network support to include both Bitcoin and Solana, signaling a broader strategy to become a truly multi-chain wallet.
Consensys’ Acquisition Spree Continues
The Web3Auth acquisition is the latest in a series of strategic moves by Consensys to broaden its service offerings and strengthen its position in the Web3 ecosystem.
In July 2024, Consensys acquired Wallet Guard, integrating its advanced security features into MetaMask to bolster user safety and protect against malicious threats.
Prior to that, in February 2023, the acquisition of blockchain development tooling platform Hal aimed to enhance Infura, Consensys’ Web3 API solution, by providing developers with real-time alerts and notifications at the protocol level.
Going back to 2022, Consensys acquired Ethereum wallet provider MyCrypto with the intention of merging its capabilities with MetaMask, further streamlining the user experience.