The Future Is Seedless: Wallets for Transitioning Web2 Consumers to Web3

  • Device Share: generated and stored on the user’s device, must be recomputed on new devices
  • OAuth login share: generated on the OAuth server, then the share is further split in a network of nodes and retrieved once when the OAuth code is verified
  • Backup/2FA share: An extra share to be kept by the user, possibly kept on a separate device, cloud or email, needed to log in to new devices.

Particle Network (Distributed Custodial EOA)

Particle Network is another wallet service that features email or social login, by using 2/2 MPC-TSS-based algorithm. There are two parties in the key generation process, the client side, and the official side, jointly computing the public key, each holding a secret share of the private key. Only the client side can start the signing process.

Sequence(Distributed Custodial Smart Contract)

Sequence is a multisig smart contract wallet that supports email or social login by delegating one of the three keys to Web3Auth. It allows developers to manage the security of the accounts with more flexibility. In addition, as a smart contract wallet, Sequence enables additional logic to improve UX in different use cases. It has been adopted in games and Web3 applications.

  • Session keys are stored in the browser’s IndexedDB.
  • A Guard key is a key owned by Horizon (Sequence server).
  • A Torus key(SSS) is a key generated by the Torus network, also known as Web3Auth; please refer to the previous section for its features.

UniPass(Distributed Passive Custodial Smart Contract)

UniPass is also a smart contract wallet wrapped on top of MPC key management. It shares all the great features of smart contract and MPC wallets. Compared to Sequence, it uses the domainkeys of the guardian emails (DKIM) to authenticate reset requests instead of the guardian key and social key. The clients can simply send emails from their predefined email accounts to reset the master key.

Summary

As we are smoothing out the bumps in Web3 user conversion, more developers are realizing and attending to the key role of the wallet, and its role as an entry point of user traffic. Particularly after MPC and smart contract solutions expanded the design space, companies are drastically mitigating the severity of the tradeoffs between seedless key management and self-custody. The distributed custodial solutions, especially the passive custodial solution of Unipass, provide the most balanced UX and security features to the users and developers. They are likely to see much broader adoption with the arrival of a batch of Web3 consumer apps in the next 12 months.

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