DeFi

Ambire Wallet

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Security

Crypto wallets today just aren’t good enough to convince the average person that digital assets are worth their while. They pose significant challenges in terms of user-friendliness, and unless the industry can solve these issues, without sacrificing the self-custodial and decentralized principles that set crypto apart, the industry is unlikely to progress.&nbsp;
Traditional noncustodial wallets often overlook the importance of a streamlined user experience, putting the burden of security on the end user. It’s the user’s responsibility to safeguard their all-important private key that acts as the gateway to their funds, which is in stark contrast to the security provided by legacy finance.&nbsp;
As such, many users have come to favor custodial wallets such as centralized exchanges, but these solutions are inherently risky, as customers of <a href="https://www.theverge.com/2022/11/30/23484331/ftx-explained-cryptocurrency-sbf-sam-bankman-fried" rel="noopener noreferrer nofollow">platforms like FTX</a> discovered to their horror.&nbsp;
However, the introduction of smart contract-based wallets, which enable something called <a href="https://cointelegraph.com/magazine/account-abstraction-supercharges-ethereum-wallets-dummies-guide/" rel="noopener noreferrer nofollow">“account abstraction”</a>, promises to change this forever. They are likely to create a paradigm shift that will make crypto more accessible and attractive to billions of users.&nbsp;
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<h2 id="span-style-font-weight-400-crypto-s-seed-phrase-conundrum-span">Crypto’s Seed Phrase Conundrum</h2>
The main flaw with existing crypto wallets, including the most popular ones like <a href="https://metamask.io/" rel="noopener noreferrer nofollow">MetaMask</a> and <a href="https://trustwallet.com/" rel="noopener noreferrer nofollow">Trust Wallet</a>, is the security. Simply put, the entire way users secure their wallets is flawed, as evidenced by data from Chainalaysis, which shows that <a href="https://www.chainalysis.com/blog/2022-biggest-year-ever-for-crypto-hacking/" rel="noopener noreferrer nofollow">hundreds of millions of dollars</a> worth of digital assets are stolen by hackers each year.&nbsp;
Existing crypto wallets are reliant on a seed phrase, or a series of 12 to 24 words that act as the keys to any wallet. Even supposedly ultra-secure hardware wallets rely on a seed phrase, which, if lost, can never be recovered. If a hacker somehow manages to gain possession of this seed phrase, you can guarantee the wallet will be emptied in a matter of minutes.&nbsp;
This reliance on seed phrases for security is an inherent weakness, especially as there’s no convenient way to keep them safe. The vast majority of users simply write it down on a piece of paper and try to store it safely somewhere – but this means there are risks. The user might forget where they have put it, or alternatively, someone else might find it.&nbsp;
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<h2 id="span-style-font-weight-400-how-smart-wallets-streamline-security-span">How Smart Wallets Streamline Security&nbsp;</h2>
Smart contract wallets are therefore a revolutionary innovation in the crypto industry. They’re based on a dual structure, including an application layer or app, similar to existing wallets, and a smart contract account that lives on-chain and is responsible for processing all transactions.&nbsp;
It’s a powerful combination that enables smart wallets such as <a href="https://www.ambire.com/" rel="noopener noreferrer nofollow">Ambire Wallet</a> to incorporate advanced functionality and simple, Web2-like security, which can be a game-changer for everyday users.&nbsp;
Smart wallets can significantly improve wallet security, with groundbreaking features that fix the biggest problems with traditional crypto wallets.&nbsp;
Because smart wallets enable custom signature verification logic, they can take advantage of the advanced security features embedded in devices such as smartphones and laptops. This means they can use standard two-factor authentication techniques to secure user’s funds.&nbsp;
The security keys can be stored on a physical device, where they are encrypted and secured, and can only be accessed via biometric authentication, such as a face or fingerprint scan. The transaction will then be verified on-chain by the wallet’s smart contract, ensuring that it is secured against phishing and malware attacks, even if the hacker manages to obtain the seed phrase.&nbsp;
Most importantly, they also enable account recovery without sacrificing self-custody or decentralization. This means the user has sole control of their wallet, and the ability to access it even if they forget their password. And nobody else can do this.&nbsp;
Other capabilities in smart wallets include the ability to set daily spending limits, akin to a traditional bank account, further improving security. If the user needs to spend above that limit, they can do this, but only by performing additional authentication, such as signing a transaction from two, predetermined devices. In this way, smart wallets can provide a seamless experience for smaller transactions, while adding an extra layer of security for higher value transactions.&nbsp;
Another interesting feature of smart wallets is the so-called “dead man’s switch”, which will enable someone’s heir to inherit their wallet and the funds within it in the event that they pass away. The assets within the wallet can be transferred to a beneficiary after a certain period of time, if the wallet remains inactive for the duration. So the user can set things up so their funds are transferred to their partner, in the event that their wallet goes silent for a period of, say, one month.&nbsp;
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<h2 id="span-style-font-weight-400-smart-security-advanced-functionality-span">Smart Security + Advanced Functionality</h2>
The security provided by smart wallets is a dramatic improvement on traditional wallets, but until now it has always come at a cost. While smart wallets improve accessibility, they have been unable to match the sophistication of more established wallets such as MetaMask, which integrate with dozens of DeFi protocols and provide a useful browser extension for use with any Web3 application.&nbsp;
Fortunately, that is no longer the case. The speed of innovation in the crypto industry outpaces most others, and the most advanced smart wallets can already match the capabilities of the likes of MetaMask.&nbsp;
Ambire Wallet is a smart wallet that has come on in leaps and bounds, and it combines the streamlined security provided by account abstraction with the extensive capabilities found in any traditional crypto wallet.&nbsp;
Besides improving on security, it is notably the first wallet to integrate a “Gas Tank” feature that makes it possible to save on transaction costs by batching them together. It also integrates with various popular DeFi protocols, enabling users to explore staking and other passive income generating opportunities. Like MetaMask, it integrates a secure token bridge for seamless token swaps across chains, a dApp catalog, and more. And there’s more to come too, with Ambire planning to launch its very own browser extension in the near future, plus a crypto credit card that users can link to their wallet. When this launches, users will be able to spend their crypto in the real world via online stores or in physical stores that accept cards.
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<h2 id="span-style-font-weight-400-every-crypto-wallet-will-be-smart-span">Every Crypto Wallet Will Be Smart</h2>
Smart wallets are paving the way toward a better future for crypto users, addressing the most critical flaws of traditional wallets by adding features that finally meet user’s expectations for convenience, security and account recovery.&nbsp;
As smart wallets like Ambire Wallet evolve to match the capabilities of today’s most popular crypto wallets, they’re making digital assets more accessible than ever before. They could be just what the industry needs to onboard its first billion users. Until now, many people have shunned crypto due to its technical nature, its perceived vulnerabilities and the general headaches that are associated with its use.&nbsp;
By eliminating these headaches and creating a user experience that matches that provided by modern banking apps, smart wallets open the door for mainstream adoption.&nbsp;

Account Abstraction Wallets Are Closing The Gap

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