Consensys, an Ethereum-focused crypto infrastructure company, announced on Monday that it has closed a deal to acquire Web3Auth, a security management company.
“This integration enhances MetaMask’s capabilities significantly, embodying our belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features,” Joseph Lubin, Founder & CEO of Consensys, said in a statement.
The benefits of this include avoiding third party risks and restrictions, like limits on the size of transactions. But in order to provide these upsides, self-custody wallet users are required to maintain their own private key—an alphanumeric code that unlocks their wallet. And unlike traditional bank accounts, there is no “forgot your password” option.
Finlay says these passwords create a barrier to entry for new crypto users who don’t trust themselves to hold onto their private key, but also don’t want to engage with large crypto exchanges—especially after the FTX collapse.
“Don’t share this with anyone, but also don’t lose it is a very difficult needle to thread,” he said.
Most of the Web3Auth team will be joining Consensys, according to a spokesperson for Consensys. Consensys declined to disclose the size of the deal or whether it was made in all cash, stock or both.
