Nitya Subramanian, Founder of Capsule, discusses the embedded wallet SDK that simplifies user experience. They touch on topics such as authentication, forthcoming features, cross-app smart account access, and secure measures. They also explore the evolution of crypto interest, programmable ecosystems, advantages for app developers, k1 curve benefits, key refresh in multi-party computation, trade-offs between security and convenience, and cross domain support for accounts.
Capsule is an embedded wallet SDK that simplifies the user experience around wallet creation and transaction signing using pass keys, MPC, and AA smart accounts.
Capsule enables users to access their wallet in any app as long as they log in with the same email address, providing a cross-domain embedded smart account solution.
Capsule plans to provide secure cross-app smart account access, programmable MPC permissions, and automations for common actions like dollar-cost averaging, aiming to make wallet creation and signing easier and more accessible with a focus on cross-app functionality.
Deep dives
Capsule: Building Embedded Wallets for a Mainstream Audience
Capsule is an embedded wallet SDK that simplifies the user experience around wallet creation and transaction signing. It leverages pass keys, MPC, and AA smart accounts to provide a cross-domain embedded smart account solution. Capsule allows users to authenticate via email address and creates a passkey for each user. The passkey is configured as a signer in a two-of-two MPC, which acts as the signer on a 4-3-7 smart account. Capsule enables users to access their wallet in any app as long as they log in with the same email address. The goal is to make wallet creation and signing easier and more accessible, with a focus on cross-app functionality. Capsule plans to provide secure cross-app smart account access, programmable MPC permissions, and automations for common actions like dollar-cost averaging.
Nitya Subramanian: Founder of Capsule and Crypto Enthusiast
Nitya Subramanian, the founder of Capsule, has been interested in crypto since college. Initially attracted to the technical and academic aspects of Bitcoin, Nitya later became excited about the vision of crypto in providing more options for managing value and life. Inspired by her experience in FinTech and the limitations of traditional systems, she sees crypto as a way to empower individuals with more control over their financial lives. Her work at Capsule focuses on solving infrastructure problems to enable flagship consumer applications that leverage crypto.
Capsule's Approach to Embedded Wallets
Capsule's approach to embedded wallets is to provide a seamless and portable user experience. The goal is to allow users to create a wallet once and use it across multiple apps. Capsule leverages pass keys and MPC to ensure secure authentication and transaction signing. By using a two-of-two MPC setup, Capsule provides increased security and eliminates the need to trust any single party with the private key. Their focus is on simplifying the user experience, reducing friction, and leveraging the unique benefits of crypto to make wallets more accessible.
Programmable MPC Permissions and Automations
Capsule is exploring the possibilities of programmable MPC permissions and automations. They aim to give users more control over their wallets and enable automations for common actions like dollar-cost averaging. MPC permissions can be enforced before signing a transaction to provide an additional layer of security. This programmability allows users to set expressive automations on their wallets while maintaining control over their assets. Capsule believes in putting users in the driver's seat and giving them more options and flexibility in managing their crypto assets.
The Future of Crypto Apps and Wallets
Capsule envisions a future where crypto apps and wallets are seamlessly integrated into users' day-to-day lives. They see a shift towards embedded wallets that allow users to transact from anywhere without having to switch between different apps or wallets. The goal is to make crypto accessible and convenient, with a focus on cross-app functionality and portability. Capsule aims to be a part of this movement by providing embedded wallet solutions that simplify the user experience and offer greater control and convenience.
Capsule is an embedded wallet SDK that leverages Passkeys, MPC, and AA Smart Accounts to simplify the user experience around wallet creation and transaction signing. Apps that integrate Capsule's embedded wallet SDK authenticate users by their email address. Capsule creates a Passkey for each user, which is configured as a signer on a 2/2 Multi-Party Computation. This MPC, in turn, is the signer on a 4337 smart account. Users that have created a Capsule account in another app will be able to access it in any future app they log into with the same email address. In other words, Capsule is a cross-domain embedded wallet provider.
In this conversation, Nitya explains the MPC setup underlying Capsule, and provides hints at the team's forthcoming release, which aims to allow secure cross-app smart account access, programmable MPC permissions, and automations for common actions like Dollar Cost Averaging.
It was great talking to Nitya about Capsule, which is making strides in the challenging domain of cross-app embedded wallets for a mainstream audience. I hope you enjoy the show.
As always, this show is provided as entertainment and does not constitute legal, financial, or tax advice or any form of endorsement or suggestion. Crypto has risks and you alone are responsible for doing your research and making your own decisions.