VELLET: Verifiable Embedded Wallet for Securing Authenticity and Integrity

The blockchain ecosystem, especially with the advent of Web3 and Non-Fungible Tokens, has seen a surge in users and applications. A major hurdle is bridging the gap between early adopters and mainstream users, and this transition is hindered by the inherently complex interfaces of blockchain wallets. Embedded wallets have emerged as a solution that offers seamless integration with decentralized applications (Dapps) to facilitate user onboarding and expand access. However, this simplification compromises security, as these wallets often lack transparency and are prone to fraud and phishing due to obscured transactions. To counteract this, the paper presents the VELLET protocol, which introduces a wallet verifier that can match the audit trail of embedded wallets in smart contracts, incorporating a process to verify authenticity and integrity of embedded wallets. This protocol aims to mitigate security risks in embedded wallets, preserving their convenience without sacrificing user security.