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This article describes the supported wallet infrastructure models, or wallet types, to help you determine which type best meets the needs of your end-users. Each wallet type has specific requirements and provides specific benefits. Use the information in this topic to choose the wallet type that best supports your business objectives.
Watch this video for an insightful overview of the infrastructure models (wallet types) available with Circle Wallets. Learn the distinctions and advantages between user-controlled and developer-controlled wallets and how you can leverage each model to meet the requirements for your application.

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Wallet types

Infrastructure models govern who controls the digital assets in a specific wallet. Businesses and individuals need to understand the characteristics of each type of infrastructure to determine the correct wallet for their needs. Circle Wallets offer two infrastructure models: user-controlled wallets and developer-controlled wallets. Each model provides distinct advantages to suit different requirements.

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User-controlled wallets

User-controlled wallets grant full autonomy to your users. We offer different authentication methods and use different encryption mechanisms to ensure the uses have complete control over their wallets. The user-controlled wallet setup prioritizes security while providing a familiar and seamless Web2-like user experience. There are Web, iOS, Android, and React Native SDKs available for user-controlled wallets. To start building, see Quickstarts for Social Logins or Email Authentication.

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Developer-controlled wallets

Developer-controlled wallets allow developers to retain control over their users’ wallets while streamlining user interactions with the Web3 ecosystem. These wallets facilitate various blockchain interactions on behalf of the users, such as sending and receiving digital assets, smart contract interactions, and NFT minting. With developer-controlled wallets, users can enjoy the benefits of the blockchain without needing to understand its complexities or manage private keys. To start building developer-controlled wallets, see Create Your First Developer-Controlled Wallet.

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Choosing your wallet type

The critical distinction between user-controlled and developer-controlled wallets is which party controls the ability to access the private key used to interact with the blockchain. User-controlled and developer-controlled wallets can make transactions, interact with smart contracts, and sign messages. In the case of a user-controlled wallet, the user controls these abilities. In the case of a developer-controlled wallet, the developer has this control.

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Why choose user-controlled wallets?

User-controlled wallets give your app’s users access and control over the underlying private keys of their wallets. Circle provides a Web2-like user experience, abstracting the complexity of seed phrases from your users. Additionally, Circle uses best-in-class security approaches to power Wallets with multi-party computation (MPC) technology. User-controlled wallets offer three authentication methods for which you can design your application’s onboarding UX: social logins, email, or PIN. For more, see Authentication Methods. With user-controlled wallets, your users have access to the speed and security of the blockchain but with a much more familiar user experience.

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Why choose developer-controlled wallets?

Developer-controlled wallets allow you to create and manage asset flows on behalf of your users, providing them with easy-to-use access to Web3 functionality. These wallets allow you to control virtually all blockchain interactions for your users, like sending and receiving digital assets, smart contract interactions, and NFT minting. By using developer-controlled wallets, your users do not need to understand the complexities of the Web3 ecosystem or worry about losing their assets because of a lost seed phrase to access the speed of the blockchain.

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Summary

This article explores the various options available for wallets, taking into account both the account type and the infrastructure model. The infrastructure model determines who controls the assets in the wallet, while the account type determines the underlying structure of the wallet itself. Understanding these concepts is essential for developers to make informed decisions that align with their specific use cases.
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