What is MetaMask?

05.05.2022

Intermediate

#Kriptorium: Ethereum #MetaMask #wallets

Key points

MetaMask is a cryptocurrency wallet built by ConsenSys.
It supports storing and transferring cryptocurrencies and NFTs issued on Ethereum or other EVM-compatible blockchains. It also includes a token-swap service.
The most popular version is a browser extension: it lets the wallet interact with decentralised applications’ smart contracts at the web-app level.
MetaMask is widely used for decentralised finance (DeFi) and non-fungible token (NFT) applications.

On which platforms is MetaMask available?

MetaMask was developed by ConsenSys, founded by Ethereum co-founder Joseph Lubin. The wallet debuted in 2016, before the rise of the DeFi sector. Until 2020 it existed only as a browser extension for Google Chrome and Firefox.

Today MetaMask is available as a mobile app for iOS and Android, and as a web extension for Google Chrome, Firefox, Brave and Microsoft Edge. The latter connects “seamlessly” to a decentralised application’s smart contracts when you open its page. This lets you use the protocol and transfer cryptocurrencies without creating a separate wallet inside it.

MetaMask is among the most popular wallets in the Ethereum ecosystem. According to ConsenSys, in early 2022 the app had more than 30m monthly active users—42% more than in April 2021.

Which blockchains does MetaMask support?

Originally MetaMask supported only Ethereum, but today it accommodates all major networks compatible with the Ethereum Virtual Machine (EVM). New mainnets can be added in the app’s settings.

As of early May 2022 MetaMask supports all cryptocurrencies on the following networks: Ethereum, Polygon, Fantom, Avalanche, Optimistic Ethereum, Arbitrum One, Aurora Network, Cronos, Harmony, Celo and EOS.

How do I add Binance Smart Chain (BSC) to MetaMask?

To hold BSC’s BEP‑20 assets in MetaMask (the network has since been rebranded BNB Chain) and pay transaction fees in BNB, follow these steps:

1. Open Settings and select Networks.

2. Click Add network in the top-right corner and enter the parameters manually:

Network name: Smart Chain

New RPC URL (blockchain address): https://bsc-dataseed.binance.org

Chain ID: 56

Symbol: BNB

Block explorer URL: https://bscscan.com

After that, BNB Chain (Binance Smart Chain) will appear in MetaMask. You can switch between different blockchains in one wallet with a single click.

What are MetaMask’s fees?

By default MetaMask runs on Ethereum and charges fees in ETH (“gas”). The exact amount depends on network congestion at the moment of the transaction.

Lately Ethereum fees have been high. To pay less, you can use another network—such as Polygon, Fantom or BNB Chain.

In the advanced version of the app you can adjust the fee. The higher the price, the faster the transaction confirms. Do not set it too low, or the transaction may take a very long time or even get stuck.

What is MetaMask Swaps?

MetaMask includes a built-in DeFi service for swapping digital assets, developed together with Codefi.

It works as an aggregator: it collects token quotes in real time from leading decentralised exchanges and picks the best prices. Sources include Uniswap, Totle, AirSwap, 0x and 1inch.exchange.

MetaMask Swaps also offers features such as reduced swap fees and slippage protection.

What are the advantages of the MetaMask wallet?

MetaMask’s strengths include a reputable developer, broad asset support, customer service, extra features and a clean design.

In addition, MetaMask is a non-custodial wallet: its developers do not collect users’ private keys or seed phrases. Address owners have full control over their funds.

The MetaMask plugin is partially open-source—this lets independent developers contribute and helps audit and detect potential vulnerabilities in the software.

What are MetaMask’s drawbacks?

MetaMask has not suffered major incidents caused by an exploit in its code. One key drawback, however, is its connection to the internet. This can leave some users vulnerable.

To address this, in 2018 MetaMask added support for connecting a Ledger hardware wallet, combining the reliability of “cold” storage with the convenience of a “hot” wallet.

In late 2021 some MetaMask users fell victim to a large phishing attack using a fake version of the wallet’s website.

In April 2022 the wallet’s team warned of disruptions due to issues at Infura, an Ethereum infrastructure provider. It also advised turning off iCloud backups for MetaMask.

Does MetaMask have its own token?

At the moment MetaMask has no native token. In November 2021, however, ConsenSys chief Joseph Lubin hinted that this could change.

The company revisited the topic just a couple of months later. Chief operating officer Jacob Cantele called introducing a governance token in MetaMask “an important aspect” of decentralisation that would help hand control of the project to the community.

At the same time, Cantele urged people not to count on a generous token airdrop.

How is MetaMask evolving?

Initially there were no restrictions on using MetaMask’s source code. But in August 2020 the app’s developers required commercial projects with large audiences to sign a paid licensing agreement.

In September 2020 ConsenSys released a mobile app for MetaMask.

The latest mobile versions also added Apple Pay support and “gasless transactions”—making fiat purchases of cryptocurrency significantly easier for users.

Developers also plan to add bitcoin support in the near future.