Capsule: Cross-App Embedded Wallet Infrastructure

Capsule provides decentralized wallet infrastructure enabling seamless Web3 experiences across chains and applications. Their MPC-powered embedded wallets combine social login simplicity with institutional-grade security, while developer SDKs make integration straightforward. The platform supports cross-app wallet portability, programmable transaction controls, and advanced security features like passkeys and distributed key management. Major ecosystem partners including MetaMask, Leap Wallet and Noble have integrated Capsule to power their wallet solutions. The protocol emphasizes mainstream adoption through mobile-first design while maintaining self-custody and censorship resistance.

What is Capsule?

Capsule represents a new paradigm in blockchain wallet infrastructure, designed to make crypto more accessible while maintaining rigorous security standards. At its core, Capsule provides embedded wallet technology that enables applications to offer seamless Web3 experiences without compromising on security or user sovereignty.

The platform utilizes distributed multi-party computation (MPC) for key management, allowing users to access their wallets through familiar methods like email and social logins while maintaining self-custody of their assets. This approach eliminates the need for seed phrases while providing institutional-grade security through a combination of distributed key generation and hardware security modules.

How to Use Capsule

For Developers

Developers can integrate Capsule's wallet infrastructure through comprehensive SDKs available for multiple platforms including web, mobile, and server environments. The integration process begins with accessing the Developer Portal to obtain API keys and necessary credentials.

The platform provides flexible implementation options ranging from using the pre-built Capsule Modal for rapid deployment to customizing every aspect of the wallet experience through lower-level APIs. Developers can choose between JavaScript, React Native, Flutter and other popular frameworks while maintaining consistent functionality across platforms.

For Users

End users interact with Capsule through partner applications that have integrated the technology. The experience typically begins with a simple authentication flow using email, social login, or other supported methods. Once authenticated, users can access their wallet functionality directly within the application.

Capsule's cross-app portability means that users can access their wallet across different applications that support the protocol. This creates a seamless experience where users can maintain their digital identity and assets while moving between different platforms and chains.

What Makes Capsule Unique?

Cross-App Wallet Portability

Unlike traditional embedded wallets that lock users into specific applications, Capsule enables true wallet portability across different platforms and chains. This means users can onboard once and access their wallet anywhere Capsule is integrated, creating a more cohesive Web3 experience.

The protocol achieves this through a sophisticated architecture that maintains consistent wallet state and security across different applications while allowing each integration to customize the user experience. This approach combines the convenience of embedded wallets with the flexibility of external wallets.

Distributed Security Architecture

Capsule's security model goes beyond standard MPC implementations by incorporating multiple layers of protection. The protocol utilizes distributed key generation where key shares are split across different security domains, making it extremely difficult for attackers to compromise user funds.

This is further enhanced by integration with hardware security modules and support for passkeys, which provide hardware-backed security on user devices. The combination of these technologies creates a security model that is both highly robust and user-friendly.

Capsule Features

Programmable Transaction Controls

Capsule provides sophisticated transaction control mechanisms that allow applications to implement custom logic around how and when transactions can be executed. This includes features like:

• Multi-signature requirements for high-value transactions
• Spending limits and velocity controls
• Time-based transaction restrictions
• Custom approval workflows
• Automated transaction execution based on predefined conditions

These controls enable applications to create secure and compliant wallet experiences while maintaining user autonomy over their assets.

Multi-Chain Support

The protocol supports multiple blockchain networks including Solana, Ethereum, and various other EVM-compatible chains. This multi-chain capability is achieved through a unified wallet interface that handles the complexity of different blockchain protocols while presenting a consistent experience to users.

Capsule's implementation includes native support for cross-chain transactions and asset management, allowing users to seamlessly interact with different networks without managing multiple wallets or dealing with complex bridging processes.

Social Login and Recovery

One of Capsule's core features is simplified wallet access through social login integration. The platform supports various authentication methods including:

• Email-based authentication
• Social media account linking
• Phone number verification
• Passkey integration
• Hardware security key support

These methods are combined with sophisticated recovery mechanisms that maintain security while providing reliable access restoration options if needed.

Capsule Team

The Capsule team brings together deep expertise in cryptography, security, and user experience design. Founded by veterans of the crypto and security industries, the team has experience building infrastructure at major tech companies and crypto projects.

Key team members include experts in:

• Distributed systems and cryptography
• Mobile and web application development
• Security architecture and audit
• Product design and user experience
• Business development and partnerships

The project is backed by prominent investors in the crypto space including a16z Crypto Startup School, Geometry, and Spice Capital, along with notable industry figures like Diogo Monica and Nathan McCauley.

Capsule Roadmap

Capsule's development roadmap focuses on expanding platform capabilities while maintaining security and usability. Key upcoming milestones include:

2024 Q1-Q2

• Enhanced multi-chain support with additional network integrations
• Improved transaction permission systems
• Advanced analytics and monitoring capabilities
• Expanded partnership integrations

2024 Q3-Q4

• AI agent integration for automated transaction management
• Advanced security features including enhanced MPC protocols
• New developer tools and SDK improvements
• Additional fiat on/off ramp integrations

2025 and Beyond

• Layer 2 scaling solutions integration
• Enhanced cross-chain functionality
• Expanded institutional features
• Advanced programmable transaction capabilities

Security and Audits

Security is paramount in Capsule's design and implementation. The protocol undergoes regular security audits by leading firms in the blockchain security space. Recent audits have been conducted by Least Authority, with additional reviews scheduled throughout the development cycle.

The security architecture includes multiple layers of protection:

• Distributed MPC for key management
• Hardware security module integration
• Regular penetration testing
• Bug bounty programs
• Real-time transaction monitoring
• Automated security scanning

Capsule maintains comprehensive security documentation and incident response procedures, with a dedicated security team monitoring platform operations 24/7.

Real World Impact

Capsule's technology has enabled significant improvements in blockchain adoption and accessibility. For example, Haraka, a platform providing reputation-based loans in Ghana, saw onboarding time reduce from 30 minutes to 5 minutes after implementing Capsule's solution.

Similarly, Bloom Network, a global sustainability organization, experienced a 1000% increase in event visibility and 10x growth in online membership after integrating Capsule for their community wallet needs.

These success stories demonstrate how Capsule's infrastructure can bridge the gap between traditional web applications and blockchain technology, making crypto more accessible to mainstream users while maintaining high security standards.