Phantom Wallet Simplifies Onboarding by Eliminating Seed Phrases

Phantom developers have introduced a feature allowing users to create a cryptocurrency wallet using just an email address and a four-digit PIN.

It’s never been easier to onboard your friends and family to crypto.

Starting today, new users can sign up for Phantom with just an email and a 4-digit PIN. pic.twitter.com/aUHx0QQkKw

— Phantom (@phantom) December 3, 2024

According to them, recording or memorizing a seed phrase when creating a new wallet is a lengthy and confusing process for most people.

To avoid inconvenience, users sometimes resort to potentially risky actions, such as taking a screenshot of the secret word combination. A piece of paper with notes can be lost along with access to the wallet.

Instead, Phantom has opted to follow the path of many traditional Web2 services by implementing registration via email or through Google and Apple accounts. A four-digit PIN is used to access the wallet.

The feature is built on a non-custodial key management protocol. The seed phrase has not disappeared; it is hidden from the user and stored locally on their device. Backups of the phrases are kept on Phantom’s servers in encrypted form, and key backups are distributed among Juicebox network participants.

“No party, except the user, will ever be able to recover the seed in decrypted form,” the developers emphasized.

The feature is already available in Phantom applications.

Back in November, some users of the Phantom app for iOS lost access to tokens due to an update.