ConSensys has acquired Web3Auth to enhance the onboarding process and overall user experience of its MetaMask crypto wallet.

This acquisition aims to tackle the significant issue of seed phrase management, as approximately 35% of MetaMask users fail to back up their seed phrases, risking permanent loss of funds.

With the integration of Web3Auth, MetaMask users will now have the ability to recover their wallets using traditional authentication methods, such as device-based authentication and social logins.

This shift reflects a broader trend towards 'account abstraction' in the crypto space, allowing users to log in and recover their wallets without relying solely on seed phrases.

The rollout of this integration will occur in phases, with plans for multifactor user onboarding to further improve security.

Additionally, the integration is expected to enhance the developer experience within the MetaMask ecosystem by providing embedded SDKs for easier blockchain integration into applications.

Dan Finlay, co-founder of MetaMask, articulated a vision of creating seamless blockchain integrations that engage users only when necessary, bridging the gap between decentralized and traditional web experiences.

Joseph Lubin, CEO of Consensys, highlighted the importance of integrating infrastructure that supports user-friendly features in Web3 wallets, including frictionless onboarding and customizable interfaces.

This acquisition is part of Consensys' broader strategy of actively acquiring crypto firms to expand its offerings and capabilities in the blockchain space.

It follows previous acquisitions aimed at strengthening MetaMask, including Wallet Guard in July 2024 for enhanced security features and MyCrypto in 2022 to improve product security.