Ethereum

1/ How embedded wallets work, pt 2

Excited to share our most thorough dive yet on the system that powers Privy embedded wallets

Dive in to understand how we built Privy and use key splitting to optimize across:

🔒 Security
✨ UX
👩‍💻 DevX
⬆️ Ability to upgrade over time

The easiest way to bring all your users onchain, regardless of whether they already have wallets | Customer love at privy.io/love

2/ Tradeoffs abound when building self-custodial systems

We set out to select a stable, simple architecture that keeps users in control and safeguards against attackers across the threat landscape

Building for scaled crypto apps today, but flexible as primitives mature tomorrow

3/ We evaluated 3 promising alternatives: Shamir Secret Sharing (SSS), Threshold Signature Systems (TSS) and Trusted Execution Environments (TEEs).

We ultimately decided SSS offered the best balance across self-custody, security, and flexibility for our use case today.

5/ Our architecture allows us to upgrade components over time to balance tradeoffs. 

This is a continual evaluation as we look for improvements and balance our core architecture with appropriate threat models (our next post in this series 👀)

6/ Putting out our assumptions and objectives helps us improve over time. This is only the beginning.

Check out the full post here 👇

6/ Putting out our assumptions and objectives helps us improve over time. This is only the beginning.

Check out the full post here 👇

https://www.privy.io/blog/embedded-wallet-architecture-breakdown

4/ SSS is a battle-tested algorithm with multiple OS implementations that have scaled in production. With it, we can ensure neither Privy/customers can access keys.

That said, this space is moving fast, and we are deeply excited about advances in TSS and TEE!