Passkeys in Web3: The End of Seed Phrases?

First, they came for the password. Now, they are coming for the seed phrase. The passkey, the new un-phishable standard from Apple, Google, and Microsoft, is not just the future of Web2 login. It is also the key to finally killing the seed phrase and making Web3 accessible to everyone.

Web3Auth provides an easy way for users to recover their crypto wallet without needing to remember passwords or seed phrases. A passkey is a digital credential stored on a user device, such as a phone or computer, that grants access to websites and applications with a simple biometric scan, such as Face ID or a fingerprint. It is more secure than a password and much easier to use.

Passkeys in web3. Source: Medium

This article will explain what passkeys are and how they are being integrated into Web3 to create a new generation of invisible and ultra-secure crypto wallets. We will explore how this technology works and why it may be the final nail in the coffin for the dreaded 12-word seed phrase.

What is a Passkey?

The FIDO Standard

Passkeys use encrypted data stored on a device’s secure enclave and perform user verification with hardware tokens like YubiKeys, biometric data like fingerprints or facial recognition, or other cryptographic methods. A passkey is based on the FIDO (Fast Identity Online) standard endorsed by giants like Apple, Google, Microsoft, and Meta. It is a public-private key pair that is stored in the secure enclave of your device.

Fido registration process. Source: Gravtar

WebAuthn’s private keys are securely generated and managed within specialized chips, including Apple’s Secure Enclave, the Secure Element in Android devices, and the Trusted Platform Module in PCs, all operating independently from the CPU and operating system, ensuring heightened security. The private key never leaves your device. When you log in to a website, the website sends a challenge to your device, and your device signs the challenge with the private key. It is a simple, secure, and unphishable way to log in.

Passkeys in Web3: The Invisible Wallet

The Core Idea

The idea of using passkeys in Web3 is to use the same familiar biometric login experience that you use for your crypto bank app to control your crypto wallet. Your phone’s secure enclave becomes your hardware wallet. The passkey enables users to access Web3 applications with the same ease as logging into a mobile app or email account.

How it Works

The process is elegantly simple. You create a new smart contract wallet. You register your device’s passkey as the owner of the wallet. Now, every time you want to sign a transaction, you simply use Face ID or your fingerprint. The transaction is signed by the private key in your phone’s secure enclave and is then sent to your smart contract wallet for execution.

This development, announced on August 7, 2025, is geared towards enhancing user experience by eliminating the need for traditional authentication methods like browser extensions or seed phrases. Sui’s implementation demonstrates how passkeys can work seamlessly with blockchain technology.

With instant wallet creation, users can set up their wallets without the need for cumbersome app downloads or browser extensions. This frictionless onboarding represents a quantum leap from the traditional Web3 experience.

The Benefits: The Best of Both Worlds

Web2 Usability

You get the same seamless login experience that you are used to from the best Web2 applications. Traditional passwords, while familiar, are increasingly vulnerable to breaches and phishing attacks. We are entering an era where blockchain onboarding is just as smooth as onboarding in any other application.

The shift in wallet technology with Passkey wallets signifies more than just an upgrade over legacy systems like Metamask or seed phrase-based wallets. They mark a leap forward, achieving an unparalleled user experience that easily rivals, and in many aspects surpasses, traditional Web2 account setups.

Web3 Security

You get the security of a hardware wallet, but without the hassle of having to carry around a separate device. Passkeys offer enhanced security because they are not stored on external servers and therefore can never be leaked. The cryptographic keys remain in your device’s secure enclave, protected by the same hardware security that guards your banking apps and personal data.

Traditional crypto wallets exclusively leverage private keys and 12- to 24-word seed phrases to sign transactions and prove ownership of funds in the wallet; if the private key is lost or forgotten, access to the wallet’s funds is permanently lost. Passkeys eliminate this single point of failure.

There are also no seed phrases to write down or to lose. For many crypto users, managing and securing seed phrases can be a major pain point. Passkey Smart Wallet eliminates this need.

Passkeys Plus Social Recovery: The Unbeatable Combination

The Ultimate Wallet

The real magic happens when you combine passkeys with social recovery mechanisms. You use your passkey for your day-to-day transactions, providing seamless authentication for routine activities. You have a set of social recovery guardians as a backup in case you ever lose your phone. This is the ultimate combination of security and usability.

Smart wallets can offer a range of advanced security features, including multi-signature approval, account recovery where trusted individuals can help recover access to a wallet, spending limits, time-locked transfers, and passkey support.

This layered security approach provides multiple fail-safes. If you lose your device, your social recovery network can help you regain access. If your social recovery network is compromised, your device-based passkey prevents unauthorized access. No single point of failure exists, even if this wallet is connected to a virtual crypto card or crypto debit card for everyday Web2-style payments.

Real-World Implementation

Leading Projects

Multiple platforms have already integrated passkey technology. Zengo is an encryption wallet that allows users to log into their accounts using the device’s biometric features without the need to store any private keys.

Web3Auth provides developers with an SDK that supports Passkey, allowing users to log in to DApps or Wallet services using credentials such as Google and Apple ID, along with Passkey, lowering the entry barrier for new users. Coinbase Wallet is also testing Passkey functionality in its browser extension version.

The first wallet to adopt this new feature is Nimora, showcasing a practical example of how secure and intuitive Web3 access can be achieved. On Solana, Para uses passkeys as an authorization primitive where the passkey unlocks a scoped session, which grants access to an Ed25519-compatible signing key.

In 2024, Stellar launched smart contracts on mainnet with Protocol 20, followed by Protocol 21, enabling secp256r1 verification, enhancing usability with passkey-powered smart wallets. This demonstrates how blockchain protocols themselves are evolving to support passkey authentication natively.

Conclusion

Passkeys are a new unphishable login standard that can be used to create a new generation of ultra-secure and user-friendly crypto wallets. Key management has been a massive hindrance to blockchain’s mainstream adoption. Passkeys eliminate this barrier to entry, making Web3 more accessible and familiar to the everyday user.

The integration of passkeys into Web3 is a sign of a great convergence between the Web2 and Web3 worlds. We are finally getting the tools that we need to build a decentralized internet that is as easy to use as the centralized internet. The seed phrase is dead. The future is passkeys.

With the entry barrier for new blockchain users now completely dismantled, the mass adoption of Web3 seems increasingly imminent. This is not hyperbole. When the friction of seed phrase management disappears, an entire category of potential users who were previously excluded can finally participate.

Ready to experience a truly seedless Web3? Use Digitap, a new wallet built with passkey technology, to see for yourself how easy and secure the future of Web3 can be.

FAQ

What is a passkey?
A passkey is a phishing-resistant cryptographic credential stored in your device’s secure enclave (TEE), using biometrics/PIN for authentication without passwords or seed phrases.​

How is a passkey different from a password?
Passwords are reusable strings stored/transmitted (phishable); passkeys are unique, device-bound public/private key pairs private key never leaves the device, public key is registered with the service.​

Are passkeys more secure than seed phrases?
Yes, seed phrases grant full wallet access if compromised (single point of failure); passkeys are device-bound, scoped to apps, and phishing-resistant with no shareable secret.​

Can I use my phone’s Face ID to control my crypto wallet?
Yes, wallets like Nimora (Sui), Para (Solana), and Stellar Protocol 21 integrate Face ID/passkeys for transaction signing via secure enclave, no seed phrases needed.​

What is the relationship between passkeys and account abstraction?
Passkeys enable account abstraction (ERC-4337) by serving as user-friendly authenticators for smart contract wallets, unlocking scoped signing sessions without EOAs/seed phrases.​