Introduction to User-Controlled Wallets
What are User-Controlled Wallets
User-Controlled Wallets are a subtype of MPC Wallets. In a User-Controlled Wallet, end users of your organization are given full control of their digital assets. In this setup, each end user of your organization holds their own unique private key share to their MPC Wallets.
With a flexible Threshold Signature Scheme (TSS) (”m out of n” key shares), User-Controlled Wallets allow your organization to customize how transactions are signed. For example, under a 3-3 signature scheme, your organization, your end user, and Cobo each hold a key share, and all three key shares must collectively sign transactions. Alternatively, a 2-3 signature scheme can be implemented, where your organization’s key share is held offline and utilized only in specific circumstances, such as disputes or critical events.
To integrate non-custodial MPC Wallets into your applications, a 2-2 signature can be implemented, where your end user and Cobo each hold a key share, while your organization holds none.