One Of The Challenges Before Wider Adoption Of Crypto And DeFi Is Key Management. Surprisingly Enough, The Web2 Concept Of Email Login Can Solve It - Even In A Non-Custodial Way. ** On Seed Phrases Alone 2. Glare 3. Purity 4. Inner 5. Liar 6. Wire. …. wtf??? Do you remember the first time you were asked to ? Perhaps you were confused: write down a seed phrase Why instead of just pasting it in Notes? write this on paper Will you stuff to “login” to Web3 apps every time? need to write all this to more familiar ones? Can you change those words Ugh, can’t they just ask for a or something? password Seed phrases are not that bad, but they look super weird if you have no idea how cryptography works. And most people have no idea how cryptography works. Right now, stemming from years of using email/password as authentication for accounts and apps. And while crypto companies and wallets are doing their best to educate users, confusion seems to be inevitable and opening countless opportunities for the always-lurking scammers. 99% of novice Web3 users come with Web2 experience Just try out this experiment - google “Curve” or “Aave” or “Uniswap” and hit the first Ad result. Try connecting and you will experience the most common social engineering scam involving seed phrases - websites mimicking Metamask and asking misled users for their seed phrases. (Actually, don’t do that - at least don’t write your seed phrase, please!) This is happening all the time and 2021 was an awesome example of the outstanding problem. , a lot of new users joined the crypto party last year. Some of them were lucky enough to buy a Bored Ape Yacht Club NFT and see it appreciate 1000x in price… only to have it stolen because of poor wallet key management. With the rising popularity of NFTs Then Why Are We Still Using Seed Phrases Instead Of Passwords? Unfortunately, common Ethereum addresses are unlocked with a private key - a long string of text. with your address. You either keep your key in a file and import it to unlock a wallet, or you use the seed phrase mnemonics. There is no way to introduce a password instead of the private key… If you own your key, you can do whatever you want …Okay, , but at the cost of full control over your wallet. Some services keep the private keys for their users and let them use passwords for unlocking their wallets. This enables onboarding but breaks one of the core principles of decentralization and it’s not much different from how traditional services work. The service you are using can cut your access at any given moment. there is a way actually But what if I told you that with email and password, while keeping your key? there is actually a way to unlock your wallet Here Come Smart Wallets Smart wallets have been discussed a lot in the past: you may have heard of a similar concept called "account abstractions.” Basically the idea is that each Ethereum account will be a smart contract, which opens a lot of opportunities to enhance the crypto UX. For the purpose of this article we’ll focus on key management. Rather than using only one cryptographic key to secure an account, using certain rules. For example, you may set up an account to be controlled by 2 keys, one of them being your mobile device and the other your Trezor hardware wallet, with the mobile device having limited permissions and daily spending, while the Trezor is unlimited. Or you may set up so-called social recovery by allowing a multisig controlled by your closest people to recover your account. smart wallets allow multiple keys to be utilized Put in simple words, - this “decentralizes” access to the wallet and enables different setups in which you can change the login user experience. smart wallets are smart contracts that can be controlled by more than one cryptographic key As you might have guessed at this point, one of them is using . email and password How To Build A Non-Custodial Smart Wallet With Email And Password Registration We already know that a . When creating Ambire Wallet, we decided to build on this feature and enable email/password registration without compromising the user’s ownership of the account. smart contract wallet can be controlled by two or more keys Ambire implements traditional authentication with an email and a password like Web2 apps. it works via an on-chain two-key multisig. Оne of the keys is stored in the browser storage and is encrypted with the user's password, and the other key is stored on our backend via a hardware security model (HSM). This authentication mode is non-custodial: using only one of the two keys, for example, if you're an attacker who successfully compromised either a user (e.g., via malware) or the HSM. You can't access the funds However, . The recovery procedure is a timelocked change of one of the two keys. If the recovery procedure was unintended (e.g., initiated by an attacker), any other key holder can cancel it. But if it was initiated legitimately (e.g., if you lost one of the two keys or you forgot your password), you can just wait for the timelock, and you'll have access to your account back after this. a recovery procedure can be started with one key only , email/password accounts are multi-signature wallets, that unlock: To summarize When 2 signatures are supplied - used in normal mode of operation; or When 1 signature is supplied, but with a timelock; used for password recovery or in case the Ambire backend becomes unavailable. The second key is normally unlocked by a confirmation code specific to (derived from a hash of) the transaction, but other authentication methods such as OTP 2FA or FaceID can be used. An additional benefit of this model is that the second key can enforce extra security rules like spending limits and checking for malicious contracts or calls (e.g., infinite approvals to EOAs). Since those rules are checked off-chain by the HSM, they can be easily modified or enhanced. Furthermore, sophisticated checks can be performed at no extra gas cost, enabling the use of AI or ML in the future. If you are curious to learn more about this, you should check out the . Ambire Wallet’s security model How It’s Going We released Ambire Wallet in December after two months of rapidly testing our security model. More than 45,000 users have registered since (Total value held in Ambire wallets is $44 million at the moment of writing the article), and guess what - the majority of accounts are controlled by email and password. , we are working on in the first half of this year. This will be the model as we expect to attract people who have no previous Web3 experience. At the moment releasing a mobile version of the wallet for iOS and Android true test for the email+password registration in trying Ambire Wallet, head to and create your account in less than a minute. If you are interested https://www.ambire.com/

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The Future Of Web3 Logins Is…Email And Password?!

The Future Of Web3 Logins Is…Email And Password?!

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