Web3 services are facing challenges in providing streamlined user experiences similar to those offered by Web2. The clunky login features and the complexity of wallet and private key management are hindering the growth of Web3 services. Poor wallet management has resulted in the loss of 20% of Bitcoin by users. Additionally, many Web3 services experience high drop-off rates during the sign-up stage.

To address these issues, platforms like Web3Auth are using multi-party computation (MPC) to offer passwordless authentication for wallets. Web3Auth enables noncustodial wallet infrastructure and has already onboarded several high-profile enterprises and decentralized applications. It allows users to login with their Web2 credentials from platforms like Google, Facebook, Twitter, and Discord.

The distributed key generation protocol used by Web3Auth ensures that the private key is never stored in one place. Instead, multiple servers hold key shares without having access to the full key. The infrastructure then maps these distributed keys to a user’s identity using their chosen Web2 login account or Web3 wallet.

This solution demonstrates how Web2 and Web3 functionalities can be combined to create a seamless user experience. Users can use a Web3 wallet tied to their conventional Web2 login method without being aware of the underlying cryptographic methods.

Industry experts emphasize the need to simplify Web3 services and make logins more user-friendly. The goal is to abstract away complicated steps and provide a login process that requires only three clicks.

Overall, the integration of Web2 and Web3 technologies is crucial for enhancing user experiences and driving the adoption of Web3 services. Simplifying the onboarding process and improving wallet management are key factors in achieving this goal.

Furthermore, the article briefly mentions the factors driving up Bitcoin’s price into 2024. These include the mining reward halving, potential approval of Bitcoin spot exchange-traded funds, and recent regulatory enforcements on industry leaders like Binance.