Dynamic excels at developer experience and multi-chain flexibility because its SDK abstracts away wallet complexity. For example, its @dynamic-labs/sdk-react-core enables a single integration to support over 30 EVM and non-EVM chains, including Solana, Starknet, and Flow. This reduces integration time from weeks to days, a critical metric for teams with aggressive go-to-market timelines. Their approach prioritizes giving developers the tools to craft custom, branded onboarding flows.
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Comparisons
Dynamic vs Privy: Embedded Wallet & Auth Platforms
A technical analysis comparing Dynamic and Privy, two leading platforms for embedding smart contract wallets and social authentication into web3 applications. This guide covers architecture, pricing, developer experience, and use-case alignment for CTOs and engineering leaders.
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introduction
THE ANALYSIS
Introduction: The Battle for Seamless Onboarding
A data-driven comparison of Dynamic and Privy, the leading platforms for embedded wallets and user authentication.
Privy takes a different approach by prioritizing security, compliance, and a unified user identity layer. This results in a trade-off of less chain-agnostic flexibility for deeper embedded security features. Privy's strength is its non-custodial, MPC-based wallet infrastructure that seamlessly blends Web2 (email/social) and Web3 logins into a single user object. Their compliance toolkit, including transaction simulation and risk alerts, is a key differentiator for regulated applications in DeFi or gaming.
The key trade-off: If your priority is rapid deployment across a vast multi-chain ecosystem with maximum customization, choose Dynamic. If you prioritize enterprise-grade security, regulatory compliance, and a robust abstraction layer that unifies Web2 and Web3 identities, choose Privy. Your stack's requirements—whether it's supporting novel L2s or navigating financial regulations—will dictate the winner.
tldr-summary
Dynamic vs Privy: Embedded Wallet & Auth Platforms
TL;DR: Core Differentiators
Key strengths and trade-offs at a glance for two leading embedded wallet solutions.
01
Dynamic: Superior for On-Chain Native Apps
Full-stack wallet orchestration: Manages MPC key shards, gas sponsorship, and transaction bundling in one SDK. This matters for dApps requiring complex, multi-step on-chain interactions like NFT minting or DeFi swaps without user gas fees. Integrates with Account Abstraction (ERC-4337) standards for smart accounts.
02
Dynamic: Advanced User & Team Management
Granular role-based access controls (RBAC): Enables enterprise-grade permissions for teams managing shared wallets. This matters for B2B SaaS, DAO treasuries, or gaming guilds where you need to define admins, signers, and spend limits programmatically.
03
Privy: Best for Simple, Mass-Market Onboarding
Frictionless social & email auth: Users sign in with Google, Discord, or email OTP—no extension download. This matters for consumer apps (social, commerce) prioritizing maximum conversion and minimizing drop-off at login. Embedded wallets are created silently post-auth.
04
Privy: Unmatched Data & Compliance Features
Built-in user data store & KYC hooks: Securely store user profiles and attach verified credentials (e.g., Persona, Veriff). This matters for regulated industries (fintech, gaming) needing identity verification, audit trails, and compliance with Travel Rule or other regulations.
05
Dynamic: Choose for Complex Web3 Workflows
Ideal for: DeFi protocols, NFT platforms, and on-chain gaming where users perform frequent, bundled transactions. Use if your core value is on-chain activity and you need fine-grained control over gas, account recovery, and multi-op execution.
06
Privy: Choose for Web2-Like User Growth
Ideal for: Social apps, brand loyalty programs, and NFT marketplaces targeting mainstream users. Use if your priority is lowering sign-up friction, collecting user data, and adding wallet functionality as a secondary feature.
DYNAMIC VS PRIVY
Head-to-Head Feature & Architecture Comparison
Direct comparison of key technical and product metrics for embedded wallet platforms.
| Metric | Dynamic | Privy |
|---|---|---|
Primary Architecture | Multi-Chain Smart Wallets (ERC-4337) | Embedded Wallets & Social Auth |
Key Management Model | Smart Account (User-Controlled) | Custodial & Non-Custodial Options |
Gas Abstraction | ||
Social Login Providers | Google, Apple, Discord | Google, Apple, X, GitHub, Email |
On-Chain Fee Sponsorship | Paymaster Integration | Paymaster Integration |
Multi-Chain Support | EVM Chains + Solana | EVM Chains |
Direct RPC Access | ||
Pricing Model (Pro) | Custom Enterprise | $0.05 per MAU |
pros-cons-a
PROS AND CONS
Dynamic vs Privy: Embedded Wallet & Auth Platforms
Key strengths and trade-offs for CTOs evaluating embedded wallet infrastructure.
01
Dynamic: Superior Multi-Chain Abstraction
Seamless cross-chain UX: Supports 20+ EVM and non-EVM chains (Ethereum, Solana, Cosmos) from a single SDK. This matters for protocols launching multi-chain apps where users shouldn't manage different wallets per chain.
02
Dynamic: Advanced Smart Wallet Features
Built-in account abstraction: Offers session keys, gas sponsorship, and batched transactions via ERC-4337. This matters for gaming or high-frequency dApps requiring complex, gasless user flows without custom infrastructure.
03
Dynamic: Higher Implementation Complexity
Steeper learning curve: The extensive feature set (multi-chain, AA) requires more integration effort. This is a con for teams with tight deadlines or those needing a simple social login without advanced wallet logic.
04
Privy: Simpler Social Auth & Onboarding
Frictionless entry: Deep integration with Web2 OAuth (Google, Apple, Discord) and embedded MPC wallets. This matters for mass-market consumer apps where converting Web2 users is the primary goal.
05
Privy: Stronger Data & Compliance Tools
Built-in user management: Provides pre-built dashboards for user profiles, data export, and compliance (like email/SMS notifications). This matters for regulated industries (DeFi, NFT marketplaces) needing user verification trails.
06
Privy: Limited Native Multi-Chain Support
EVM-first focus: Primarily optimized for Ethereum and L2s, with less native support for Solana or other ecosystems. This is a con for projects building on non-EVM chains or requiring deep multi-chain interoperability out-of-the-box.
pros-cons-b
DYNAMIC VS PRIVY
Privy: Pros and Cons
Key strengths and trade-offs for embedded wallet & auth platforms at a glance.
01
Privy: Superior User Onboarding
Seamless social & email auth: Supports Google, Apple, Discord, and email OTP out-of-the-box. This matters for mass-market dApps targeting non-crypto natives, as it reduces sign-up friction to < 30 seconds. Their pre-built UI components accelerate integration.
02
Privy: Robust Account Abstraction
ERC-4337 Smart Wallets by default: Every user gets a programmable smart account with session keys and gas sponsorship. This matters for subscription models and enterprise apps requiring complex transaction policies and seamless user experiences without seed phrases.
03
Dynamic: Multi-Chain & Multi-Wallet Flexibility
Connect any wallet, on any chain: Native support for 10+ EVM chains and seamless switching between MetaMask, Coinbase Wallet, and others. This matters for DeFi power users and NFT platforms where users already have established wallets and assets across multiple ecosystems.
04
Dynamic: Granular Wallet Management
Advanced embedded wallet controls: Offers fine-grained features like transaction simulation, security alerts, and programmable RPC endpoints. This matters for high-value financial applications where developers need deep visibility and control over the wallet session and transaction lifecycle.
05
Privy: Limited Wallet Agnosticism
Primarily focused on embedded wallets: While it supports external wallet connections, its core strength is its own smart wallet stack. This can be a con for protocols whose users are predominantly existing EOA holders (e.g., MetaMask) who may resist migrating to a new account.
06
Dynamic: Higher Implementation Complexity
Power requires configuration: The flexibility to support many chains and wallet types means more initial integration work and ongoing chain support decisions. This matters for smaller teams or MVP launches where speed and simplicity are the primary objectives.
CHOOSE YOUR PRIORITY
Decision Framework: When to Choose Which Platform
Dynamic for Mass Adoption
Verdict: The superior choice for mainstream onboarding. Strengths: Dynamic's core value proposition is abstraction. It provides a seamless, custodial, keyless experience via embedded wallets and social logins (Google, Apple, Discord). This drastically reduces user friction, making it ideal for consumer apps, social platforms, or any project prioritizing user acquisition over cryptographic purity. It handles gas sponsorship and cross-chain UX automatically. Key Metric: Onboarding time reduced from minutes to seconds.
Privy for Mass Adoption
Verdict: A strong, flexible alternative with a privacy-first twist. Strengths: Privy also enables embedded wallets and social logins, but its architecture is more modular. It shines with its privacy-preserving data vault, allowing users to store encrypted data off-chain. This is powerful for apps requiring user profiles or private metadata. It offers more granular control over the auth flow and wallet connection experience for developers. Key Metric: Combines ease-of-use with enhanced data control.
DYNAMIC VS PRIVY: EMBEDDED WALLET & AUTH PLATFORMS
Pricing & Cost Analysis
Direct comparison of key pricing, cost, and feature metrics for embedded wallet solutions.
| Metric / Feature | Dynamic | Privy |
|---|---|---|
Pricing Model | Pay-as-you-go (per MAU) | Pay-as-you-go (per AA wallet) |
Monthly Active User (MAU) Cost | $0.10 - $0.50 | N/A (wallet-based) |
Avg. Cost per Embedded Wallet | N/A (user-based) | $0.01 - $0.05 |
Gas Sponsorship (Paymaster) | ||
Free Tier | 5,000 MAU/month | 500 AA wallets/month |
SOC 2 Type II Compliance | ||
Direct Custody Option | ||
Smart Wallet (ERC-4337) Default |
verdict
THE ANALYSIS
Final Verdict and Recommendation
Choosing between Dynamic and Privy hinges on your application's core priorities: user experience versus control and compliance.
Dynamic excels at delivering a seamless, branded user onboarding experience by abstracting away wallet complexity. Its core strength is a unified, non-custodial wallet that aggregates multiple key types (EOA, MPC, smart accounts) into a single user identity. This results in higher conversion rates, as evidenced by partners like Flooring Protocol and OpenSea reporting significant reductions in onboarding friction. Dynamic's SDK-first approach prioritizes developer velocity for consumer-facing dApps.
Privy takes a different, more foundational approach by providing a flexible identity and auth primitive that developers can compose. Its strategy centers on giving teams granular control over the user journey, data storage (with options for self-hosting), and compliance frameworks like GDPR. This results in a trade-off: it requires more integration work than a turnkey solution but offers superior customization for complex enterprise or regulated use cases, such as those requiring specific KYC flows.
The key trade-off: If your priority is maximizing user adoption and simplifying integration for a consumer dApp, choose Dynamic. Its aggregated wallet and polished UX are proven growth levers. If you prioritize granular control, regulatory compliance, or building a custom identity stack, choose Privy. Its modular architecture and data residency options are better suited for applications where user data sovereignty and bespoke workflows are non-negotiable.
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