Web3 has become the new playground for cybercriminals and hackers to obtain users' credentials. With people and businesses increasingly embracing NFTs and cryptocurrency, it has become vital to provide them with secure authentication methods. Imagine a world where you can access your crypto assets without the hassle of remembering a complex password. That's what passwordless authentication is bringing to the table in the crypto industry. 

In the social web, also called web 2.0, user data is owned, processed, and misused by a few big digital platforms. Web3 emerges as something completely different — where users are not dependent on third parties for a network or a marketplace to operate.

In an oversupplied, crowded market, Web3 presents companies with the opportunity to reimagine their operational models and build products (or assets) that are dynamic, collaborative, and collective. More than that, Web3 presents the opportunity to regain customers' trust.

Privacy is critical in the Web3 landscape — the question is how to collect and store the right data to monitor behavior and prevent fraud while respecting self-sovereign identity.

EBOOK

SELF-SOVEREIGN IDENTITIES IN THE CRYPTO INDUSTRY

DOWLOAD NOW

New web, old scams

Despite all the efforts to keep users' identities private and secure, hackers can still find a way to get access to web3 crypto wallets. Scammers have been using well-crafted emails and SMS messages for years to trick users into believing they're on a legitimate website and giving away their credentials. Now, hackers are using the same logic to take web3 crypto wallet private keys.

In February, Wormhole's cryptocurrency platform reported that an attacker stole 120,000 wrapped Ethereum worth hundreds of millions of dollars. A month later, Sky Mavis, developers of an NFT-based game, had more than $600 million stolen. Hackers use hacked private keys to withdraw money from users' digital wallets.

In light of these numbers, we need to ask some questions. How is wallet authentication data being stored? How is it being used? And how can we prevent such things from happening?

In order to protect their users, crypto exchanges need to eliminate common attack vectors such as passwords, OTPs, and email and SMS as second-factor authentication methods. Authentication methods that do not require passwords make users less susceptible to hackers exploiting gaps in authentication processes. In addition, passwordless methods provide them with full control over their data.

Stop using passwords in web3 crypto wallets authentication journeys

By leveraging face authentication solutions, crypto exchanges and token marketplaces can ensure all users have a seamless authenticating experience while improving security and KYC compliance. It's not only about earning competitive advantage — although you certainly will — but also about creating a trustable and enjoyable experience for your users so they feel compelled to invest more.

YooniK envisions a world in which all authentication interactions are private, secure, and seamless. We believe in authentication journeys where users can do anything with a look, allowing users to authenticate anywhere, any time, on any device using something that's unique and can't be stolen or faked: their faces.

Our algorithm is certified and ranked in the top 5 in Europe and the United States by an independent benchmark with 99.9999% accuracy. YooniK enables a fully handsfree experience, bringing unprecedented levels of convenience and accuracy when adopting face authentication in daily routines.

Integrate private, secure, and handsfree authentication in minutes

Start integrating and testing YooniK right now — just register and subscribe to a free plan. Any specific tool you would like to integrate face authentication with? We're integrated with Auth0, Okta and are continuously expanding this list. Feel free to get help on our discord channel or get in touch directly with our support team.