Consensys Wants to Transform MetaMask with the Acquisition of Web3Auth

Managing seed phrases has long been one of the biggest headaches for crypto users, particularly in the world of decentralized finance (DeFi). This is due to the high rate at which people lose access to their keys. To address this issue, Consensys aims to revamp MetaMask by acquiring Web3Auth.

It's important to note that MetaMask is the leading decentralized wallet for accessing DeFi. Consensys, the Ethereum-aligned company, is behind this wallet. For years, MetaMask has served as the gateway for thousands of users to interact with DApps across various ecosystems.

However, Consensys now has plans to enhance the user experience for DeFi participants. According to the company’s CEO, Joseph Lubin—who is also a co-founder of Ethereum—the acquisition of Web3Auth is central to this vision. In a recent report by CoinDesk, Lubin stated that MetaMask must become more user-friendly.

A key step in this transformation is enabling seed phrase recovery in the event users lose them. Web3Auth provides this kind of service in a way that resembles Web 2.0 applications, but crucially, it does so while maintaining the privacy and decentralization of users’ funds.