Crypto wallets used to be confusing. You had to download browser extensions, manage scary seed phrases, and switch between apps just to send a transaction. Embedded wallets fix all of that by putting the wallet directly inside the app you're already using.
What Are Embedded Wallets?
Think of embedded wallets as invisible crypto wallets built right into websites and apps. Instead of downloading MetaMask or another wallet app, you just sign up with your email or Google account, and boom - you have a wallet.
The difference is huge. With regular crypto wallets, you have to:
- Download a separate app or extension
- Write down a 12-word seed phrase (and pray you don't lose it)
- Switch between the wallet and the app you want to use
With embedded wallets, you just:
- Sign up like you would for any website
- Start using crypto features immediately
- Never think about keys or seed phrases
How They Actually Work
Here's what happens when you use an app with an embedded wallet:
- You sign up with email, Google, or whatever method you prefer
- The app creates a private key for you and stores it securely
- You can send transactions, buy NFTs, or do whatever the app supports
- Everything happens inside the app - no switching between different programs
The crypto stuff happens in the background. You don't need to understand how blockchains work.
What Makes Embedded Wallets Special
No More Seed Phrases
The biggest win is that you don't have to manage seed phrases. No more writing down random words on a piece of paper and hoping you don't lose it. You still own your assets, but the technical stuff is handled for you.
Everything Happens in One Place
You don't have to jump between apps to approve transactions. Everything happens where you're already spending time.
Better Security
Modern embedded wallets use fancy security methods like multi-party computation and encryption. But you don't have to worry about any of that - it just works.
Sign Up Like Normal
You can create a wallet using your email, Google account, phone number, or even your fingerprint. It feels like signing up for any other website.
Works Across Blockchains
Many embedded wallets work with multiple blockchains, so you're not stuck on just Ethereum or just Solana.
Free Transactions
Some embedded wallet providers let app developers pay for gas fees, so users can try things without spending money on transaction costs.
Looks Like Part of the App
Developers can make the wallet match their app's design, so everything feels cohesive.
Who Makes Good Embedded Wallets
The embedded wallet space has gotten pretty competitive. Here are the main players:
Openfort
Openfort focuses on giving developers lots of flexibility while keeping things simple for users. They're big on open-source key management.
Privy
Privy is known for security and splits keys using something called Shamir's secret sharing. They work with both Ethereum and Solana.
Magic
Magic has a patented system called "Delegated Key Management" and supports various ways to sign up.
Alchemy Smart Wallets
Alchemy focuses on getting users started quickly without seed phrases or gas fees.
Sequence
Sequence lets you use the same wallet across multiple apps, with both custom UI and social login options.
Thirdweb
Thirdweb offers modular solutions that work with both web3 and traditional logins.
Fireblocks
Fireblocks supports over 100 blockchains and includes features like seedless backup and social recovery.
How Openfort Does Embedded Wallets
Openfort has built a solid solution that combines authentication, transaction signing, and smart accounts to make things easier for both developers and users.
What Openfort's Embedded Wallets Can Do
Easy Sign-Up
You can log in with email, social media, or existing wallets. This bridges the gap between regular web apps and crypto apps. You can either build a custom auth flow or use their pre-built kit.
Simple Transaction Signing
The embedded signer handles transactions without making you think about key management. You approve transactions easily while staying secure.
Smart Accounts
Openfort offers two types of accounts: Smart EOAs (which work with the new 7702 standard) and Smart Wallets (which use ERC-4337). Both give you features like free transactions and automated batching while keeping your assets safe.
Where Embedded Wallets Actually Work
Gaming
Embedded wallets are perfect for games. Players can manage in-game items without interrupting their gameplay. Openfort helped Moonlit Games get 150,000 active players with smooth mobile onboarding.
Online Shopping
E-commerce sites can accept crypto payments directly without making customers use separate wallet apps. Gamp used this approach to onboard thousands of users on day one.
DeFi Apps
DeFi platforms use embedded wallets to make complex financial products feel more like regular banking apps, removing barriers for people who aren't crypto experts.
Stablecoins
Stablecoins are huge right now (second biggest use case after Bitcoin). Embedded wallets make it easy to build apps around borderless money - things like super-apps or international payroll systems.
What's Coming Next
The crypto wallet market is expected to hit $48 billion by 2030, growing at almost 25% per year.
Here's what we'll probably see:
- Better integration with traditional banking
- Wallets that work seamlessly across different blockchains
- More sophisticated identity management
- AI-powered transaction automation
- Better compliance with financial regulations
The Bottom Line
Embedded wallets are solving crypto's biggest problem: it's too complicated for normal people. By making crypto feel like regular web apps, they're opening up blockchain technology to everyone.
Solutions like Openfort's embedded wallets give businesses a way to add crypto features without making their apps feel weird or technical. You get familiar sign-up methods, no seed phrase headaches, and solid security.
For developers who want to add blockchain features to their apps, embedded wallets offer the best balance of security, functionality, and user experience. They're probably going to become the standard way most people interact with crypto.
Common Questions About Embedded Wallets
What exactly is an embedded wallet?
An embedded wallet is a crypto wallet built directly into an app or website. You can manage digital assets and use blockchain features without downloading separate wallet apps or browser extensions. Sign up works just like any normal website.
How are they different from regular crypto wallets?
Regular crypto wallets require you to manage seed phrases and use separate apps. Embedded wallets are built into the apps you're already using, so there's no complex setup or switching between different programs.
What are the main benefits?
- No seed phrase management
- Everything happens in one app
- Sign up with email or social accounts
- Better security through advanced encryption
- Works across multiple blockchains
- Often includes free transactions
- Can be customized to match the app's design
Who makes the best embedded wallets?
The main players are Openfort, Privy, Magic, Alchemy Smart Wallets, Sequence, Thirdweb, and Fireblocks. Each has different strengths depending on what you need.
What makes Openfort different?
Openfort offers a complete solution with easy authentication, secure transaction signing, and smart accounts that support free transactions and automation. They have SDKs for web, mobile, and gaming platforms.
Where do people actually use embedded wallets?
The biggest use cases are gaming (managing in-game items), e-commerce (crypto payments), DeFi apps (easier onboarding), and stablecoin applications like international payments.
Are embedded wallets secure?
Yes. They use advanced security like multi-party computation and encryption to protect your assets, while still being much easier to use than traditional wallets.
How do embedded wallets make crypto easier?
By removing seed phrases and letting you sign up with familiar methods like email or Google, embedded wallets eliminate the biggest barriers that keep people away from crypto.