  The blockchain ecosystem, particularly with the rise of Web3 and Non-Fungible
Tokens (NFTs), has experienced a significant increase in users and
applications. However, this expansion is challenged by the need to connect
early adopters with a wider user base. A notable difficulty in this process is
the complex interfaces of blockchain wallets, which can be daunting for those
familiar with traditional payment methods. To address this issue, the category
of "embedded wallets" has emerged as a promising solution. These wallets are
seamlessly integrated into the front-end of decentralized applications (Dapps),
simplifying the onboarding process for users and making access more widely
available. However, our insights indicate that this simplification introduces a
trade-off between ease of use and security. Embedded wallets lack transparency
and auditability, leading to obscured transactions by the front end and a
pronounced risk of fraud and phishing attacks. This paper proposes a new
protocol to enhance the security of embedded wallets. Our VELLET protocol
introduces a wallet verifier that can match the audit trail of embedded wallets
on smart contracts, incorporating a process to verify authenticity and
integrity. In the implementation architecture of the VELLET protocol, we
suggest using the Text Record feature of the Ethereum Name Service (ENS), known
as a decentralized domain name service, to serve as a repository for managing
the audit trails of smart contracts. This approach has been demonstrated to
reduce the necessity for new smart contract development and operational costs,
proving cost-effective through a proof-of-concept. This protocol is a vital
step in reducing security risks associated with embedded wallets, ensuring
their convenience does not undermine user security and trust.
