The evolution of crypto wallets is rapidly transforming how users interact with blockchains and their associated apps.
Embedded wallets are at the forefront of this transformation, offering seamless integrations and improved user experiences through seedless self-custody.
This article explores what embedded wallets are and why they are set to fundamentally transform how you interact with digital assets in your everyday life.
What are embedded wallets?
If you want to interact with apps on Solana, you normally have to set up a Phantom browser extension or mobile app first.
The benefit of this setup is that you can freely navigate to different apps—always taking along your digital assets. However, these traditional wallets can be challenging for newcomers and require a bit of research to learn how to secure and manage seed phrases and private key pairs.
Embedded wallets are different. Unlike traditional crypto wallets, embedded wallets are built into the user interface of the host app or website and can be set up using an email or social account without a seed phrase. This makes it easier for non-crypto-savvy users to access and utilize apps without the typical complexities associated with traditional wallets.
Benefits of embedded wallets
Seedless self-custody
One of the significant barriers to mainstream adoption of crypto is the steep learning curve associated with traditional wallets. Embedded wallets lower this barrier by enabling you to sign in and interact with crypto apps using familiar credentials such as email or social accounts—no seed phrase required.
For many people, managing and memorizing seed phrases is a hassle—and can even be a complete deterrent. Embedded wallets address this issue by eliminating the need for seed phrases, making the crypto experience more user-friendly and secure for a broader audience.
Rich experiences
Embedded wallets enable developers to create rich decentralized finance (DeFi), game, social media, and e-commerce experiences.
For instance, developers can deploy embedded wallet functionality directly into their applications, enabling users to make purchases and trade assets without leaving their app—providing a cohesive and uninterrupted experience that enhances user engagement and retention.
New, exciting use cases
Embedded wallets are poised to unlock further innovation and app development.
In the social media space, embedded wallets already allow users to tip content creators, purchase digital goods, and participate in decentralized social networks such as friend.tech. By integrating wallet functionality directly into social media platforms, users can easily manage their digital assets and participate in the growing crypto ecosystem.
In the gaming industry embedded wallets could enable players to purchase in-game assets, trade items, and earn rewards in the form of cryptocurrencies. This could enhance the gaming experience and introduce players to the world of digital assets.
In the e-commerce sector, embedded wallets could enable customers to make seamless cryptocurrency payments directly on e-commerce platforms, eliminating the need for third-party payment processors. This could simplify the checkout process and reduce transaction fees, benefiting both merchants and customers.
Bringing embedded wallets to Solana
With our acquisition of Bitski, we're bringing embedded wallets to Solana.
Since launch, Bitski has built developer-friendly tools and worked with major brands such as Adidas, Major League Soccer (MLS), and WWE—all while being backed by notable investors, such as Andreessen Horowitz and Coinbase Ventures.
We’ve already begun the onboarding process to fully integrate the Bitski team and product into our own.
If you're a developer, especially on Solana, and you're interested in contributing to the future of onboarding and embedded wallets, please reach out to [email protected].
