The Future of Consumer Protection in Non-Custodial Wallets

A seed phrase offers all-or-nothing access with zero recovery logic. Loss or theft leads to permanent, irreversible fund loss, a primary barrier to mass adoption.

• $3B+ in crypto lost annually to private key compromises.
• Zero native delay between theft detection and asset exfiltration.
• Recovery relies on insecure, centralized custodians or social backups.

Embed security logic directly into the wallet's transaction flow using smart contract account primitives like ERC-4337. This enables conditional transaction execution.

• Time-locks & spending limits: Automatically block transfers above a set threshold or require a 24-hour delay.
• Delegated recovery: Pre-set trusted entities (friends, institutions) to help recover access without custody.
• Session keys: Grant limited, expiring permissions to dApps, neutralizing unlimited approval risks.

Policies need data. On-chain oracles provide live threat intelligence to trigger protective actions before settlement, moving security from reactive to proactive.

• Address poisoning & phishing detection: Block interactions with flagged malicious contracts in real-time.
• Anomaly detection: Identify abnormal transaction patterns (e.g., first-time NFT bridge) and require MFA.
• Compliance layers: Automatically enforce jurisdictional rules or sanction lists at the wallet level.

Problem: Users sign malicious transactions because they can't parse contract interactions. Solution: Pre-signing simulation that flags risks like unexpected asset transfers or infinite approvals.

• Simulates transaction outcome before you sign, highlighting risks.
• Context-aware security rules that understand DeFi protocols like Uniswap and Aave.
• Open-source and chain-agnostic, building trust through transparency.

Problem: MEV and failed trades drain user funds through slippage and front-running. Solution: Users submit desired outcomes (intents), and off-chain solvers compete to fulfill them optimally.

• Removes execution risk from the user; you only pay for success.
• Aggregates liquidity across DEXs and private pools for better prices.
• Inherently MEV-resistant design protects against sandwich attacks.

Problem: Irreversible private key loss and unauthorized transactions are existential risks. Solution: Multi-signature schemes with programmable transaction policies and social recovery guardians.

• Programmable security policies (spend limits, allowed addresses).
• Time-delayed recovery prevents unilateral account takeover.
• Modular stack enabling integration with fraud detection services like Forta.

Problem: Hot wallets are vulnerable to malware and phishing that steals keys from memory. Solution: Isolate private keys in a secure, offline element (SE or TEE) that never exposes the seed.

• Private keys never leave the secure hardware element.
• On-device transaction verification prevents blind signing to malicious interfaces.
• Physical confirmation (button press) required for every transaction.

Problem: Institutions need regulatory compliance, multi-approval workflows, and insurance. Solution: MPC-based wallet infrastructure with policy engines and deep exchange/DeFi integrations.

• MPC technology eliminates single points of key failure.
• Granular policy engine for role-based approvals and whitelists.
• $1B+ insurance policies underwritten by Lloyd's of London.

Problem: New malicious contracts and phishing sites emerge faster than static blocklists can update. Solution: Real-time, on-chain and off-chain threat detection using machine learning and heuristics.

• Real-time scanning of contract addresses and URLs for malicious behavior patterns.
• Dynamic risk scoring that adapts to new attack vectors like address poisoning.
• Browser extension integration that blocks dangerous interactions before they happen.