Custodial wallet

Custodial wallet management in the blockchain ecosystem opens an accessible and secure front door for all users, regardless of their level of familiarity with the technology. By delegating security and private key management to trusted third parties, this approach eliminates technical barriers and simplifies access to the benefits of blockchain. For users less familiar with the complex concepts of blockchain, custodial management offers an intuitive and user-friendly solution that makes managing digital assets as simple as using a SaaS application.

The user-friendliness of custodial wallets lies in their intuitive user interface and integrated features. These wallets provide a seamless and familiar experience, similar to online banking, facilitating adoption by a wider audience. Additionally, users often benefit from additional features such as automated portfolio management and performance tracking, which simplify the management of their digital assets.

Fund security is a major concern in custodial management, and service providers invest heavily in robust security measures to protect their users' assets. By storing private keys securely and implementing advanced security protocols, these wallets provide reliable protection against online threats such as hacks and fraud. Additionally, users often benefit from additional guarantees such as fund insurance, which increase confidence in the security of their assets.

Custodial management also provides unparalleled convenience for users active in blockchain markets. By providing easy access to exchange and trading platforms, these wallets enable users to respond quickly to market opportunities and manage their portfolios efficiently. Additionally, advanced management features, such as market alerts and portfolio analytics, give users complete control over their investments and enable them to maximize their returns.

Finally, custodial management paves the way for mass adoption of blockchain by making the technology accessible to everyone, even those who are unfamiliar with its underlying concepts. By providing a user-friendly and secure solution for managing digital assets, these wallets expand access to blockchain and democratize financial innovation on a global scale.

This is what the Fireblocks infrastructure offers. Thanks to Fireblocks, all users have the opportunity to enjoy blockchain experiences without having to worry about one or more private keys for their wallets.

When a user creates an account on Authentify It, a Solana wallet is created, and the private key of this wallet is directly split into 3 pieces.

When a blockchain transaction is initiated by Authentify It, it is no longer necessary to ask the user to sign this transaction. From now on, an exchange with the Fireblocks infrastructure is enough to obtain the necessary cryptographic signature.

However, it is not possible to carry out just any transaction. Indeed, Authentify It has identified and created the transactions necessary for its proper functioning, and recorded them as “Transaction Policy” in Fireblocks.

As a result, the user's wallet is completely secure and interaction with this wallet requires a complete process to be valid.

Transactions on the blockchain with custodial management are done as follows:

First, Authentify It initiates a transaction with one of its Smart Contracts for a specific feature, here Claim Ownership. This functionality aims to create an NFT for the end user.

Authentify It creates the transaction to create an NFT, then asks Fireblocks if the transaction is valid against Authentify It's policies. If the transaction is 100% valid, then Fireblocks will establish the reunification of the user's 3 private keys to cryptographically sign the transaction and return the signature to us.

We then just need to add the signature to the transaction and broadcast it to the blockchain.

Interestingly, Fireblocks also has Smart Contracts that we can use if it fits the Authentify It use case. Therefore, there are 2 ways of seeing the previous diagram:

If Authentify It uses its own Smart Contracts, the transaction is therefore carried out in two stages with the Authentify It server.

If the use of Fireblocks Smart Contract is necessary, in this case it is Fireblocks directly which broadcasts the transaction to the blockchain.