Introduction
If you want to implement a custodial version of the embedded wallet on to your platform you can store the recovery key within your own server. The benefits of implementing Xellar’s Embedded Wallet API on a custodial level is to ensure that the experience of managing and supporting the users can be managed by the project.
Companies who look to implement a custodial version of the embedded wallets are normally looking to:
- Improve customer experience when using the platform
- Remove gas fees without implementing account abstraction
- Implement centralised controls
Best Practice
The best practice to store the recovery keys is to encrypt before storage. Contact admin@xellar.co and we can guide you through this process
Authentication Considerations
When implementing a custodial solution, you can use custody authentication which allows you to manage user authentication through your own systems. However, it's important to note that custody authentication skips user permission management, making it less secure compared to other authentication methods.
Security Implications:
- Custody auth bypasses built-in permission checks
- Reduced security controls for user access
- Requires additional security measures on your end
- Consider implementing additional authentication layers for enhanced security