- Circle has officially introduced Modular Wallets which will offer developers flexibility by enabling customizable smart contract accounts using the ERC-6900 standard.
- With features like passkey authentication, session keys, and multi-signature support, Modular Wallets are set to revolutionize digital asset management in the Web3 landscape.
Circle, a leader in blockchain-based financial services, has introduced Modular Wallets, a new variant of its Programmable Wallets. This innovative solution offers developers enhanced flexibility in managing smart contract accounts.
This has been possible as they will be providing customizable and interoperable wallet infrastructure.
Notably, unlike traditional wallet models that come with predefined features, Modular Wallets allow developers to select only the components developers need, creating tailored wallet experiences.
Smart contract account (SCA) implementations vary widely across providers, often leading to inconsistent user experiences and vendor lock-in. To address these issues, Circle has collaborated with industry giants such as Alchemy, Trust Wallet, Quantstamp, and the Ethereum Foundation to co-author ERC-6900,
It is worth mentioning that Modular Wallets utilize this open standard, ensuring seamless interoperability and flexibility for developers.
Key Features of Modular Wallets
Currently available for Polygon PoS and Arbitrum, Modular Wallets come with a range of features designed to enhance usability and security:
- SDK-First Experience: Developers can access a user-friendly SDK for web and mobile platforms (iOS and Android).
- Flexible Key Management: Options include Circle-generated externally owned account (EOA) keys, passkeys, or third-party custody solutions.
- Indexing Service: Real-time tracking of wallet balances and transactions without manually querying blockchains. Data can be accessed via the Circle Developer console or API.
- Transaction Screening: All transactions are automatically checked against the OFAC Sanctions List to flag any matches with restricted entities.
- Gas Abstraction: Integration with Circle Paymaster and Gas Station, or third-party gas solutions, ensures a seamless user experience.
On the other hand, one of the most notable features of Modular Wallets is its support for passkeys, a modern authentication method that enhances security while simplifying user interactions.
Unlike traditional passwords, passkeys use cryptographic keys stored on the user’s device, eliminating the need for complex password management and improving security against phishing attacks.
Circle’s Roadmap Ahead
Circle has outlined ambitious plans to expand further the capabilities of Modular Wallets, including;
- Session Keys: Enable automated transactions, such as subscriptions and spending limits, allowing smart contract accounts to process recurring payments seamlessly.
- Multi-Owner Support: Introduce multi-signature wallets where multiple signers, using either EOA keys or passkeys, can manage accounts collaboratively.
- Weighted Multi-Sig: Implement a system where signers have assigned weights, ensuring transactions only proceed when a predefined approval threshold is met. This enhances treasury management security.
- Expanded Blockchain Support: In addition to Polygon PoS and Arbitrum, Circle plans to extend compatibility to Base, OP Mainnet, and other EVM-compatible chains.