Mainstream Brands Are Joining Web3 In The Bear Market

Sean Li is the CEO and Co-founder of Magic Labs, which is a wallet that enables passwordless login and Web3 onboarding without seed phrases.

Despite not being as well known as other Web3 wallets, Magic Labs recently raised $52M from PayPal Ventures, onboarded mainstream brands like Mattel and 7-Eleven, and have over 25 million wallets installed.

In our conversation we will dive into how they've built enterprise-friendly wallet solutions, their major collaborations, the onboarding process of Web2 brands and how they're using Web3 technology, how DeFi can be more palatable for the mainstream, and much more.

But first, Sean will get us started with Magic and describe how it's different from the other wallets.

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7 Key Takeaways

1. Magic raised 52 million from PayPal Ventures recently and onboarded mainstream Web 2 brands like Mattel and 7-Eleven among 50 other enterprise clients. They have over 25 million wallets installed.
2. Magic has a patented key management system, the most practical solution in the market to address enterprise customers' performance and scalability needs. But at the same time being friendly with the crypto beginners and staying with the Web3 ethos.
3. One key part of the design is not seeing the user's private key in any part of the infrastructure. Not when the keys are generated or when it's signing a transaction. The keys are generated in a secure frame on the user's client and sent directly to Amazon's hardware security modules for encryption and decryption without routing them through their system.
4. Magic has two flavors of the product. One is a universal wallet, which means one user has access to multiple dApps, like one wallet to multiple dApps. And the dedicated version of the wallet, it's scoped to each dApp. So you could have different wallets across different dApps, like different MetaMask accounts for different use cases.
5. Magic supports over 20 blockchains. They started on Ethereum and then the EVM-compatible chains, but also some other layer ones like Solana and Flow.
6. A use case around fan base and customer engagement and loyalty, leveraged Magic to bring artists into Web3 and develop relationships with their fans with drops of exclusive digital content or merch, and the numbers are looking great compared to just community growth on traditional platforms: 52% more fans than Facebook groups, 76% more than Reddit, and 259% more than Discord servers.
7. Magic’s mission is to give every internet user a wallet and work with brands, potentially restoring trust in brands by helping them tap into the next generation of customers by providing more ways for customer engagement and loyalty.

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