Vitalik Buterin Warns Against Over-Simplifying Crypto Wallets

In a post on X, Buterin responded to the growing trend of in-app wallets embedded directly into web pages, which eliminate the need for browser extensions, external apps, or even passwords. While this innovation significantly reduces onboarding friction and improves user experience, Buterin expressed concern over the trade-offs.

“I get the convenience benefits but I also see risk from going in this direction,” he wrote, emphasizing the need for wallet software that users can choose and that actively represents their interests. According to Buterin, wallets should not become invisible background tools controlled by apps, but rather independent, sophisticated agents that prioritize user sovereignty.

He suggested a longer-term vision involving decentralized browsers that perform security checks, enforce IPFS-hosted interfaces, and block surveillance-like tracking—similar to how Brave browser strips trackers from websites.

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Buterin argues that while embedded wallets solve onboarding issues, they risk centralizing control, weakening user protections, and drifting away from crypto’s foundational values. His remarks serve as a call to developers to prioritize decentralization and build tools that empower users, not just onboard them faster.

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