Consensys Buys Web3Auth’s 50M-User Tech: Is MetaMask About to Change?
Consensys has acquired Web3Auth, a Singapore-based wallet authentication provider. MetaMask users will soon be able to open and recover wallets through social logins and device methods, reducing seed-phrase failures and providing developers embedded wallet options for gaming, social, and finance apps.
Consensys, the Ethereum-focused software firm behind MetaMask, is strengthening its Web3 arsenal with the acquisition of wallet services startup Web3Auth. In a press release shared with CryptoNews, Consensys mentioned the move comes amid concerns about the risks of traditional seed phrase-based wallet systems. With approximately 35% of users reportedly failing to back up their seed phrases, many risk losing access to their funds. By integrating Web3Auth’s authentication technology, Consensys aims to significantly reduce this risk.
This acquisition reflects a broader trend in crypto towards improving the user experience. Web3Auth’s infrastructure introduces multi-factor authentication, enabling seamless onboarding while maintaining security. For the average user, it means entering the Web3 space with fewer obstacles and more confidence.
Developers will now have access to simplified wallet integration with Web3Auth’s SDKs securely linked with MetaMask’s tools. This advancement allows for the creation of user-friendly dapps in sectors like gaming, social platforms, and finance apps, where embedded wallets offer immediate access.
Web3Auth, serving nearly 50 million users and over 8,000 applications, expands Consensys’ global reach, particularly in Asia. The acquisition positions MetaMask for global expansion and product development tailored to local preferences.
Consensys’ strategic acquisitions, including MyCrypto, HAL, SMG, and Wallet Guard, have enhanced MetaMask’s capabilities. In a recent deal with SharpLink Gaming, Consensys led a significant investment, furthering its influence in the sports betting and iGaming industry.
