One of the largest decentralized peer-to-peer Ethereum marketplaces, LocalEthereum now enables users to connect external wallets to their account instead of using a username and password combination.
You can now connect your favourite wallet to localethereum instead of using a username and password. Sign a message with your wallet to log in, and funds will go directly to and from your wallet.https://t.co/XCfAML9Hau
— localethereum (@localethereum) October 22, 2018
According to its official blog, the platform is now compatible with external software or hardware wallets, so those who prefer using theirs rather than the built-in web wallet can do so. Until now, people had to stick to the well-known username and password login system, and once through the process, they were assigned with a free ETH wallet that is encrypted in the user’s browser.
“We made this decision because we didn’t want to create a hurdle for users new to Ethereum,” the platform assured.
The new update will not affect users’ privacy, as all messages and transactions will remain encrypted using the same technique. The user’s’ funds will also never touch LocalEthereum’s server. What will be different, however, is the log-in flow, and the separation between LocalEthereum and the user’s wallet.
By using an external wallet, users will be able to bypass built-in wallets as a go-between when buying and selling ether, the company explained in their release. The platform will detect the user’s wallet address automatically, and their wallet will integrate with the escrow smart contract directly.
Any web3 wallet and dApp browser is fully compatible with LE. They also recommend using wallets such as imToken, MetaMask, Trust Wallet, Coinbase Wallet, and even the popular hardware crypto wallet Ledger.
Support for even more wallets, as well as the WalletConnect protocol, is planned for the future. In the meantime, they encourage people to give this feature a try if they are well-versed in the Ethereum matter while advising those new to the Ethereum ecosystem to stick to the old method for the time being.
The users will have to sign a message from their connected wallet to authorize any function. In other words, the platform will send a “signature request” and the owner has to approve it from within the wallet. This is true for every single interaction with any operation, so it comes as a minor downside for those who are accustomed to a faster, less complicated way to go through their transaction.