Web3 Authentication

How to implement wallet-based authentication for decentralized applications

What is Web3 Authentication?

Web3 authentication allows users to sign in to your application using their cryptocurrency wallets instead of traditional email/password combinations. This provides a decentralized, user-controlled authentication method.

Key Benefits:

No passwords to remember or manage
User owns their identity
Cross-platform compatibility
Built-in cryptographic security
Native Web3 ecosystem integration

Working with Documentation

Always provide AI with their documentation and articulate exactly what you want from those services, as they offer more than just authentication.

Best Practice Approach:

Choose your provider (Dynamic or Privy)
Go to the specific part of their docs you need (sign in/sign up)
Copy the relevant documentation
Provide it to AI along with your specific requirements

Example AI Prompt:

"I want to add wallet authentication to my Next.js app using Dynamic. Users should be able to connect with MetaMask, WalletConnect, and Coinbase Wallet. Here's the documentation I found: [paste documentation]"

Be specific about which wallets, features, and user flows you want to implement.

Security Considerations

Important Security Note:

When allowing users to interact with your Web2 storage through Web3 authentication, make sure you limit access to your frontend. Users should only be able to interact with your database through your website.

Ask AI to Help Secure Your Setup:

🔒 Secure Your Database

Implement proper authentication and authorization layers between Web3 auth and your database

🌐 Limit Frontend Access

Ensure wallet-authenticated users can only access data through your website, not directly

Example Security Prompt for AI:

"I have Web3 authentication with Dynamic/Privy and a MongoDB database. Help me create a secure middleware that verifies the user's wallet signature before allowing them to save their NFT collection to my database. Users should only be able to access their own data."

Common Use Cases

�� Gaming & NFTs

Players authenticate with their wallet to access their NFT items and game progress

Example: "Connect wallet → Display owned NFTs → Save game progress to profile"

🏪 DeFi Applications

Users connect wallets to interact with smart contracts and view transaction history

Example: "Connect wallet → Check balances → Execute trades → Store preferences"

🎨 Creator Platforms

Artists and creators use wallet auth to manage their profiles and digital assets

Example: "Connect wallet → Verify ownership → Upload artwork → Manage collections"

🏛️ DAOs & Governance

Members authenticate to participate in voting and community features

Example: "Connect wallet → Verify token holdings → Cast votes → View proposals"

Quick Start Checklist

Getting Started Steps:

Choose your provider (Dynamic or Privy)

Create an account and get API keys

Read their documentation for your specific use case

Provide documentation and requirements to AI

Test thoroughly with different wallets

Implement security measures for data access

Helpful AI Prompts

🔗 Basic Connection

"Help me set up Privy in my Next.js app so users can connect MetaMask and WalletConnect. Show me the basic setup with login/logout buttons."

💳 Wallet Integration

"I want to display the user's wallet address and balance after they connect. How do I access this information with Dynamic?"

📝 Smart Contract Interaction

"Show me how to let users sign transactions to interact with my smart contract using their connected wallet."

Wallet Connect Providers

API and SDK providers used commonly for Web3 authentication and wallet connection:

Dynamic RainbowKit Privy WalletConnect Wagmi