Privy

Privy

Privy is an embedded wallet and authentication SDK that lets dApps onboard users with email, phone, social logins, passkeys, or existing wallets -- without requiring users to install a browser extension or manage seed phrases. The SDK creates non-custodial embedded wallets using 2-of-3 Shamir Secret Sharing (SSS) with TEE (Trusted Execution Environment) infrastructure. Privy was acquired by Stripe in June 2025, signaling deeper payment-rails integration ahead.

What You Probably Got Wrong

• HTTPS is required -- WebCrypto fails silently on HTTP -- Privy's key sharding relies on the Web Crypto API, which only works in secure contexts. Loading your app over http:// (except localhost) silently fails with no error message. The SDK initializes but wallet operations produce cryptic failures. Always deploy behind HTTPS. On local dev, localhost gets a browser exception, but http://192.168.x.x does not. The primary threat vector for SSS key sharding is browser malware on the device share. In the 2-of-3 SSS model, compromising ANY 2 shares reconstructs the full private key: device share (browser malware) + Privy share (Privy infrastructure breach) = full key compromise. The recovery share alone cannot reconstruct the key, but it reduces the attack surface to 2 parties instead of 3.

• Creating a Solana embedded wallet before EVM permanently blocks EVM wallet creation -- Privy creates embedded wallets lazily after first login. If you call createWallet({ type: 'solana' }) before the EVM wallet exists, the EVM wallet slot is permanently blocked for that user. Always create the EVM wallet first, or use createOnLogin: 'all-users' to auto-create both in the correct order.

• Farcaster login + createOnLogin: 'users-without-wallets' blocks embedded wallet creation -- Farcaster accounts already have a custody wallet, so Privy treats them as "users with wallets" and skips embedded wallet creation. But the Farcaster custody wallet is not usable in-browser for signing transactions. Use createOnLogin: 'all-users' if you support Farcaster login, or manually call createWallet() after login.

• verifyAuthToken only works on ACCESS tokens, not identity tokens -- Privy issues two token types: access tokens (short-lived, for API auth) and identity tokens (contain user profile data). Calling verifyAuthToken(identityToken) silently fails or throws a misleading error. For identity tokens, use getUser({ idToken }) instead. Server-side verification requires your app SECRET (not app ID).

• v3 Solana peer dep migration is the #1 upgrade failure point -- Privy v3 dropped @solana/web3.js in favor of @solana/kit. If you see peer dependency conflicts or runtime errors after upgrading, remove @solana/web3.js entirely and install @solana/kit. The API surface changed significantly -- Connection becomes createSolanaRpc, PublicKey becomes address().

• Privy wallets are NOT custodial -- The private key is split into 3 shares via Shamir Secret Sharing: (1) device share stored in the browser, (2) Privy share stored in TEE infrastructure, (3) recovery share set up by the user. Any 2 of 3 shares reconstruct the key. Privy alone cannot access user funds.

• Embedded wallets are created AFTER first login, not during -- The PrivyProvider config createOnLogin controls this. The wallet does not exist during the login callback. Check for wallet existence after the login flow completes and the useWallets() hook updates.

• useWallets() returns ALL connected wallets, not just embedded -- If a user connects MetaMask AND has a Privy embedded wallet, useWallets() returns both. Filter by wallet.walletClientType === 'privy' for embedded wallets, or wallet.walletClientType === 'metamask' for MetaMask.

• Privy is NOT RainbowKit -- Privy is auth-first (email/social login that optionally creates a wallet). RainbowKit is wallet-first (user picks a wallet, then connects). They serve different user journeys. Privy targets web2 users who don't have wallets. RainbowKit targets web3 users who already do.

• Embedded wallets do NOT persist across browsers or devices -- The device share is stored in browser local storage. A user logging in on a new device must complete recovery (or re-create a wallet) to access the same embedded wallet. Always prompt users to set up recovery during onboarding.

• usePrivy() returns authenticated but wallet might not be ready -- Authentication and wallet initialization are separate states. After authenticated === true, the embedded wallet may still be loading. Check wallet.ready from useWallets() before attempting any signing or transaction operations.

• Privy does NOT include WalletConnect by default -- To support external mobile wallets via WalletConnect, you must install @privy-io/react-auth with the WalletConnect connector and provide a WalletConnect project ID in the config. Without this, mobile users with external wallets cannot connect.

Critical Context

Stripe acquisition: June 2025. Privy is now a Stripe company. The SDK continues under the @privy-io npm scope. Current version: @privy-io/react-auth v3.14.1 (last verified March 2026) Security model: 2-of-3 Shamir Secret Sharing + TEE. Device share (browser), Privy share (TEE infra), recovery share (user-configured). Supported chains: All EVM chains + Solana. Chain configuration is per-app in the Privy dashboard.

Auth Methods

Privy supports 15+ authentication methods. Configure in PrivyProvider via loginMethods.

import { PrivyProvider } from "@privy-io/react-auth";

<PrivyProvider
  appId={process.env.NEXT_PUBLIC_PRIVY_APP_ID!}
  config={{
    loginMethods: ["email", "google", "passkey", "wallet"],
  }}
>
  {children}
</PrivyProvider>

React SDK

Installation

npm install @privy-io/react-auth

PrivyProvider Setup

Wrap your app with PrivyProvider at the root. Must be inside a React tree (not in a Server Component for Next.js App Router).

"use client";

import { PrivyProvider } from "@privy-io/react-auth";
import type { ReactNode } from "react";

export function Providers({ children }: { children: ReactNode }) {
  return (
    <PrivyProvider
      appId={process.env.NEXT_PUBLIC_PRIVY_APP_ID!}
      config={{
        appearance: {
          theme: "dark",
          accentColor: "#6366f1",
        },
        loginMethods: ["email", "google", "passkey", "wallet"],
        embeddedWallets: {
          createOnLogin: "all-users",
          requireUserPasswordOnCreate: false,
        },
        defaultChain: mainnet,
        supportedChains: [mainnet, base, arbitrum, optimism, polygon],
      }}
    >
      {children}
    </PrivyProvider>
  );
}

usePrivy Hook

The primary hook for authentication state and actions.

import { usePrivy } from "@privy-io/react-auth";

function AuthComponent() {
  const {
    ready,           // boolean -- SDK initialized
    authenticated,   // boolean -- user logged in
    user,            // PrivyUser | null -- user object with linked accounts
    login,           // () => void -- opens login modal
    logout,          // () => Promise<void> -- logs out, clears session
    linkEmail,       // () => void -- link email to existing account
    linkGoogle,      // () => void -- link Google to existing account
    linkWallet,      // () => void -- link external wallet
    getAccessToken,  // () => Promise<string | null> -- JWT for API calls
  } = usePrivy();

  if (!ready) return <div>Loading...</div>;

  if (!authenticated) {
    return <button In</button>;
  }

  return (
    <div>
      <p>User ID: {user?.id}</p>
      <button Out</button>
    </div>
  );
}

useWallets Hook

Returns all connected wallets (embedded + external). Always filter by type.

import { useWallets } from "@privy-io/react-auth";

function WalletDisplay() {
  const { ready, wallets } = useWallets();

  if (!ready) return <div>Loading wallets...</div>;

  const embeddedWallet = wallets.find(
    (w) => w.walletClientType === "privy"
  );
  const externalWallets = wallets.filter(
    (w) => w.walletClientType !== "privy"
  );

  return (
    <div>
      {embeddedWallet && (
        <p>Embedded: {embeddedWallet.address}</p>
      )}
      {externalWallets.map((w) => (
        <p key={w.address}>
          {w.walletClientType}: {w.address}
        </p>
      ))}
    </div>
  );
}

useEmbeddedWallet Hook

Direct access to the embedded wallet for creation and management.

import {
  useEmbeddedWallet,
  isNotCreated,
  isConnected,
} from "@privy-io/react-auth";

function EmbeddedWalletManager() {
  const wallet = useEmbeddedWallet();

  if (isNotCreated(wallet)) {
    return (
      <button => wallet.create()}>
        Create Embedded Wallet
      </button>
    );
  }

  if (!isConnected(wallet)) {
    return <div>Connecting wallet...</div>;
  }

  return <p>Wallet: {wallet.address}</p>;
}

Embedded Wallet Management

Sign a Message

import { useWallets } from "@privy-io/react-auth";

async function signMessage(wallets: ReturnType<typeof useWallets>["wallets"]) {
  const embeddedWallet = wallets.find(
    (w) => w.walletClientType === "privy"
  );
  if (!embeddedWallet) throw new Error("No embedded wallet found");

  const provider = await embeddedWallet.getEthereumProvider();
  const signature = await provider.request({
    method: "personal_sign",
    params: ["Hello from Privy!", embeddedWallet.address],
  });

  return signature;
}

Send a Transaction

import { useWallets } from "@privy-io/react-auth";
import { createWalletClient, custom, parseEther } from "viem";
import { base } from "viem/chains";

async function sendTransaction(
  wallets: ReturnType<typeof useWallets>["wallets"]
) {
  const embeddedWallet = wallets.find(
    (w) => w.walletClientType === "privy"
  );
  if (!embeddedWallet) throw new Error("No embedded wallet found");

  await embeddedWallet.switchChain(base.id);

  const provider = await embeddedWallet.getEthereumProvider();
  const walletClient = createWalletClient({
    chain: base,
    transport: custom(provider),
  });

  const [address] = await walletClient.getAddresses();
  const hash = await walletClient.sendTransaction({
    account: address,
    to: "0xRecipient..." as `0x${string}`,
    value: parseEther("0.001"),
  });

  return hash;
}

Export Private Key

Users can export their embedded wallet private key. This is a user-initiated action that requires Privy's export UI.

import {
  useEmbeddedWallet,
  isConnected,
} from "@privy-io/react-auth";

function ExportWallet() {
  const wallet = useEmbeddedWallet();

  if (!isConnected(wallet)) return null;

  return (
    <button => wallet.export()}>
      Export Private Key
    </button>
  );
}

Server-Side Auth

Privy issues JWTs for authenticated users. Use these to protect your API routes.

Access Token vs Identity Token

Express Middleware

import { PrivyClient } from "@privy-io/server-auth";
import type { Request, Response, NextFunction } from "express";

const privy = new PrivyClient(
  process.env.PRIVY_APP_ID!,
  process.env.PRIVY_APP_SECRET!
);

async function requireAuth(
  req: Request,
  res: Response,
  next: NextFunction
) {
  const authHeader = req.headers.authorization;
  if (!authHeader?.startsWith("Bearer ")) {
    res.status(401).json({ error: "Missing authorization header" });
    return;
  }

  const token = authHeader.slice(7);

  try {
    const claims = await privy.verifyAuthToken(token);
    req.privyUserId = claims.userId;
    next();
  } catch (error) {
    res.status(401).json({ error: "Invalid or expired token" });
    return;
  }
}

Client-Side: Sending the Token

import { usePrivy } from "@privy-io/react-auth";

async function fetchProtectedData() {
  const { getAccessToken } = usePrivy();
  const token = await getAccessToken();

  const response = await fetch("/api/protected", {
    headers: { Authorization: `Bearer ${token}` },
  });
  return response.json();
}

Getting User Profile (Identity Token)

Use getUser({ idToken }) for identity tokens (NOT verifyAuthToken).

const user = await privy.getUser({ idToken });
// user.email?.address, user.wallet?.address, user.linkedAccounts

Cross-Chain Support

Privy embedded wallets support both EVM and Solana from the same authenticated user session.

EVM Chain Switching

const embeddedWallet = wallets.find(
  (w) => w.walletClientType === "privy"
);

// Switch to Arbitrum
await embeddedWallet.switchChain(42161);

// Switch to Base
await embeddedWallet.switchChain(8453);

Solana Embedded Wallet

import { useWallets } from "@privy-io/react-auth";

function SolanaWallet() {
  const { wallets } = useWallets();

  const solanaWallet = wallets.find(
    (w) => w.walletClientType === "privy" && w.chainType === "solana"
  );

  if (!solanaWallet) return null;

  return <p>Solana address: {solanaWallet.address}</p>;
}

Smart Wallet Integration

Privy + Safe (Account Abstraction)

Privy embedded wallets can serve as the signer/owner for a Safe smart account, enabling gas sponsorship and batched transactions.

import { PrivyProvider } from "@privy-io/react-auth";

<PrivyProvider
  appId={process.env.NEXT_PUBLIC_PRIVY_APP_ID!}
  config={{
    embeddedWallets: {
      createOnLogin: "all-users",
    },
    // Privy's built-in smart wallet support uses Safe under the hood
    smartWallets: {
      enabled: true,
    },
  }}
>
  {children}
</PrivyProvider>

Using Smart Wallets

When smart wallets are enabled, Privy creates a Safe smart account with the embedded wallet as the owner. The smart wallet address is different from the embedded wallet address.

import { useWallets } from "@privy-io/react-auth";

function SmartWalletInfo() {
  const { wallets } = useWallets();

  const smartWallet = wallets.find(
    (w) => w.walletClientType === "privy_smart_wallet"
  );
  const embeddedWallet = wallets.find(
    (w) => w.walletClientType === "privy"
  );

  return (
    <div>
      {embeddedWallet && (
        <p>Signer (EOA): {embeddedWallet.address}</p>
      )}
      {smartWallet && (
        <p>Smart Wallet (Safe): {smartWallet.address}</p>
      )}
    </div>
  );
}

Sponsored Transactions with Smart Wallets

Smart wallets enable gas sponsorship through Privy's paymaster. Users pay zero gas.

async function sendSponsoredTx(
  smartWallet: ConnectedWallet
) {
  const provider = await smartWallet.getEthereumProvider();
  const walletClient = createWalletClient({
    chain: base,
    transport: custom(provider),
  });

  const [account] = await walletClient.getAddresses();

  // Gas is sponsored by the paymaster -- user pays nothing
  const hash = await walletClient.sendTransaction({
    account,
    to: "0xRecipient..." as `0x${string}`,
    value: parseEther("0.001"),
  });

  return hash;
}

Privy + ZeroDev

For advanced account abstraction (session keys, custom validators), use ZeroDev's Kernel with Privy as the signer.

import { createKernelAccount } from "@zerodev/sdk";
import { signerToEcdsaValidator } from "@zerodev/ecdsa-validator";
import { providerToSmartAccountSigner } from "permissionless";

async function createZeroDevAccount(
  embeddedWallet: ConnectedWallet
) {
  const provider = await embeddedWallet.getEthereumProvider();
  const signer = await providerToSmartAccountSigner(provider);

  const ecdsaValidator = await signerToEcdsaValidator(publicClient, {
    signer,
    entryPoint: entryPoint07Address,
  });

  const kernelAccount = await createKernelAccount(publicClient, {
    plugins: { sudo: ecdsaValidator },
    entryPoint: entryPoint07Address,
  });

  return kernelAccount;
}

Custom UI / Headless Mode

Privy provides a default login modal, but you can build fully custom UI using headless hooks.

Each auth method has a headless hook: useLoginWithEmail (sendCode/loginWithCode flow), useLoginWithOAuth (initOAuth with provider), useLoginWithPasskey, useLoginWithWallet, useLoginWithFarcaster, and useLoginWithCustomAuth. Each hook exposes a state object for tracking the multi-step flow.

import { useLoginWithEmail } from "@privy-io/react-auth";

function CustomEmailLogin() {
  const { sendCode, loginWithCode, state } = useLoginWithEmail();

  if (state.status === "awaiting-code-input") {
    return <button => loginWithCode({ code })}>Verify</button>;
  }

  return <button => sendCode({ email })}>Send Code</button>;
}

import { useLoginWithOAuth } from "@privy-io/react-auth";

function GoogleLogin() {
  const { initOAuth } = useLoginWithOAuth();
  return (
    <button => initOAuth({ provider: "google" })}>
      Continue with Google
    </button>
  );
}

Alternatives Comparison

Related Skills

• frontend-ux -- dApp UX patterns, transaction lifecycle, error handling. Privy handles auth; frontend-ux handles everything after.
• wagmi -- React hooks for Ethereum. Privy's embedded wallet provider is compatible with wagmi's custom transport.
• safe -- Safe smart accounts. Privy's smart wallet mode uses Safe under the hood. See safe skill for multisig patterns.
• account-abstraction -- ERC-4337 and EIP-7702 deep dive. Privy's smart wallets build on this infrastructure.

References

• Privy Documentation: https://docs.privy.io
• Privy React SDK: https://www.npmjs.com/package/@privy-io/react-auth
• Privy Server Auth: https://www.npmjs.com/package/@privy-io/server-auth
• Privy Dashboard: https://dashboard.privy.io
• Privy GitHub: https://github.com/privy-io
• Privy Security Model: https://docs.privy.io/guide/security
• Stripe Acquisition Announcement: https://stripe.com/blog/privy (June 2025)
• Shamir Secret Sharing: https://en.wikipedia.org/wiki/Shamir%27s_secret_sharing