@nonlinear.eth: embedded wallets fragment web3 identity

Embedded wallets in Web3 are creating fragmented identities by replicating Web2's app-specific login problems. This approach forces both developers and users to manually map identities across applications, creating unnecessary complexity.

What do you think about embedded wallets?

Said that last year in my discussion with Vitalik:

given lack of web3 consumer growth the market says no

This tbh. We've become entirely stuck:

- Privy and others weirdly lock app devs and users into some kind of website that manages your key, becomes roughly non custodial therefore

- Ethereum people don't want to adopt the Passkeys curve

- Passkeys people don't want to store crypto keys

- Writing down seed phrases is not consumer scale

This is also the reason why we at Kiwi have become stuck on our mobile app. Because there is no single good way to deal with what is laid out above.

And then also: We actually want the users' main Ethereum address and ENS to be their identity. So their ENS etc.

If you think from first principles, that's the key they already have and keep safe at all costs. And so we don't want to interfere with that good pattern.

But then on our side there are all sorts of issue with this, also of conflicting interest nature. Because when you need to keep a key really safe, it also means that you'll introduce many steps into the signature flow etc.