Wallets

Blockchain wallets are a key element in onchain finance. They enable users to sign smart contract transactions.

• Token issuers and their agents: They use wallets to trigger the management functions of their smart contracts such as deploying a token, changing the ownership, adding agents, defining compliance rules, etc.
• Token holders: They need wallets to receive tokens, and to perform actions such as transferring tokens, giving allowances to DeFi protocols, or to manage their onchain identity.

With the ERC-3643 framework, wallets are tied to on-chain identities, allowing for the definition of permissions for each smart contract. This means that wallet addresses can be easily updated at any time. For example, the owner can appoint agents using their wallet addresses but can change these agents at any point in time. If one of these agents' wallets is compromised, it is easy to remove access and grant access to another wallet address. Similarly, if token holders lose access to their wallets, they can request the issuer of the token (or its custodian) to trigger the recovery function. This function transfers their assets from the lost wallet to a new one without altering blockchain ownership, as ownership is tracked via onchain identities rather than wallets.

Tokeny provides connection with a wide range of wallet providers that can offer features such as multi-signature and policies for governance management. For this type of provider, Tokeny’s platform prepares and verifies the blockchain transaction (i.e. ensuring it will be successful once onchain; gas, qualified parties…). It then sends the prepared blockchain transaction to the chosen connected wallet provider, where customers can review and sign it, for example according to a governance model. This ensures that the transaction is secure and aligns with our user' preferences.