Authereum is a novel Ethereum smart contract wallet allowing users to interact with Ethereum applications in a simple and convenient way.
Authereum is a novel Ethereum smart contract wallet allowing users to use Ethereum applications in a way that they are familiar with, from services outside the Blockchain world. It works similarly to how users can “Log-In with Facebook” when signing up for a new service.
Provided you have an Authereum wallet, you can connect to a wide-array of Ethereum applications both on mobile and desktop and use your Authereum account to sign-in exactly as you would do with your Facebook account.
This is cool because it adds more options to the mix of wallets that exist today. For reference, until recently most users had no choice but to use browser extensions like Metamask. This limited usage of Ethereum applications to desktop computers and at times, deterred people new to crypto who felt uncomfortable managing their funds through a browser extension.
Recently, new standards like Wallet Connect have somewhat alleviated this problem by allowing users of compatible mobile wallets (such as Argent) to connect to an Ethereum application by simply scanning a QR-code. Authereum tackles the same problem from a slightly different angle and does it extremely well.
When it comes to creating your Authereum wallet, you must navigate to their website and fill out their sign-up form which consists of e-mail, username, and password.
If you find yourself wondering why the hell you need to set up a password for a non-custodial blockchain wallet - rest assured, this is not a conventional password scheme where Authereum could potentially access your funds! The password is only used to encrypt your private key, which is created the moment you sign-up and stored on Authereum’s servers so you can conveniently sign-in using your password every time after.
Note that because this is not a normal password mechanism, you can’t reset your password as you would with a traditional app, simply due to the fact that Authereum itself doesn’t know your password.
However, you can recover your wallet in multiple other ways thanks to some very clever, smart contract wizardry. This includes the not-so novel seed-phrase backup but also setting up Google Authenticator and other second factor apps that attain admin rights (keys that can control the smart contract holding your funds) to your account and can help you regain access. Pretty handy as relying solely on a written paper backup can be quite stressful when you have a lot of funds in your wallet.
Currently, the Authereum wallet dashboard is only accessible on the web (desktop & mobile responsive) but the team has announced that it’s working on a native mobile app for both iOS and Android.
Once you have signed-up you are automatically given an ENS address. ENS addresses are convenient because they allow other people (using any Ethereum wallet) to pay you without having to type in a long address like “0xc84cDd208D9e9B3053865BdB723a1591a7f5D232”. They can instead send funds to an address such as “johndoe.eth”. Whereas normally you would have to pay for an ENS address, Authereum gives you one for free.
In your wallet dashboard, you can see an overview of your latest transactions or buy some tokens if you’re based in the US. Hopefully, fiat on-ramps for other continents will follow soon!
Another stand-out feature of Authereum is that transaction fees are paid by Authereum on behalf of the user.
This is made possible by a clever mechanism whereby Authereum wallet transactions are broadcasted to so-called “relayers” (think of them as automated agents/bots on the blockchain), who pay the fee on behalf of the user in Ether. Regardless of whether Authereum’s relayer is going to cover fees indefinitely, this mechanism represents a big improvement in user experience as it allows users to pay transaction fees in any currency instead of Ether. Needless to say that this all happens in the background. Users can simply use their wallet and enjoy the simplicity of making transactions without having to hold any Ether prior to it.
This again likens Authereum more to standard fintech apps and reduces the complexity for beginners.
We are excited about this new wallet, which makes using Ethereum applications a breeze and can’t wait to see it integrated with an increasing number of Ethereum applications.