Is it Possible to Get Rid of Seed Phrases?

Zhen Yu Yong talks about Web3Auth, a wallet-as-a-service company trying to improve the user experience.

In this Premium interview, Laura talks with Zhen Yu Yong, cofounder of Web3Auth, to discuss how his company aims to replace traditional seed phrases for a more convenient and secure experience in the world of crypto wallets.

Shifting From Seed Phrases to Multifactor Wallet

Zhen emphasizes the importance of shifting from single-factor seed phrases to multifactor wallets, which emulate existing authentication flows users are familiar with, such as OTP and 2FA.

Combining Technologies for Enhanced User Experience

Web3Auth combines multi-party computation (MPC), on-chain components, and account abstraction to deliver a user experience that increases security as users accrue more value. The solution offers two-factor security without sacrificing convenience, making it a viable alternative to seed phrases.

Building Infrastructure for More Crypto Use Cases

With a background in the Ethereum Foundation, Zhen and his cofounder Leonard Tan recognized the need for better infrastructure to enable a broader range of use cases in the crypto space.

Web3Auth operates as an infrastructure company, generating revenue through volume-based software-as-a-service (SaaS) subscriptions and offering additional support for integration at an added cost.

The B2B Route: Focusing on Distribution and Adoption

Zhen explains that the B2B route was chosen as the most efficient way to popularize their technology, focusing on working with existing wallets and large brands with established user bases to gain traction.

“We wanted to work with people that had that distribution, that have that entry point, existing wallets in the space... or large brands wanting to carve out a niche for themselves, which already have existing users and existing use cases,” Zhen said.

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