Which wallet model should you choose?
There are three common models, and each trades convenience against control.
- Non-custodial with a seed phrase: the user holds the keys. It is simple and familiar, but a lost phrase means lost funds.
- MPC wallets: the key is split into shares held by different parties, so there is no single seed phrase and recovery can be designed around the shares. It adds server components and more design work.
- Smart contract wallets: account abstraction on EVM chains allows social recovery, spending limits and sponsored fees, with contract risk added.
A custodial wallet, where you hold user keys, is a different business with different regulation, and we will tell you plainly if that is what a design implies.
