Working With Dev Controlled Wallets

You can find the Github repo link here.

Introduction to Developer-Controlled Wallets

In this tutorial, we'll explore how to create developer-controlled wallets using Circle's SDK. This approach offers enhanced control and flexibility for developers managing digital assets on behalf of users.

Step 1: Generating Cipher Text and Secrets

The process begins with generating a cipher text, akin to a challenge ID, which is essential for subsequent operations. Using the helper functions provided in the SDK, execute npm install to install necessary libraries. Set up your developer SDK by providing your API key and entity secret. If you don't have an entity secret yet, you'll generate one using the generateSecret function. Store this secret securely.

Next, fetch the public key associated with the secret and generate a cipher text, which is an encrypted version of your data. With the cipher text, you can proceed to create wallet sets and wallets.

Step 2: Creating Wallet Sets and Wallets

With the cipher text ready, navigate to the Circle website. Under the 'Dev Control' section, access the configurator and input your cipher text. This will provide you with a recovery file—store it securely.

In your code, ensure you have an .env file containing variables like API key, entity secret, encrypted data (cipher text), wallet set ID, wallet IDs, wallet addresses, and token ID. This centralized configuration simplifies the process.

To create a wallet set, use the createWalletSet function, providing a name for the set. Once successful, you'll receive an ID and name for the wallet set. Subsequently, create wallets within this set using the createWallets function. The response will include details like wallet IDs, addresses, and associated blockchain information.

Step 3: Managing Wallets and Transactions

Retrieve a list of wallets using the getWallets function, which will provide information such as wallet IDs, addresses, account types, and creation dates. To get details of a specific wallet, use the getWallet function with the desired wallet ID.

Before initiating transactions, ensure you have test tokens in your wallets. You can request these from Circle's faucet. With tokens in place, use the getTransactions function to view transaction history, including transaction hashes, statuses, and operation types.

To check the balance of a wallet, utilize the getBalance function, which will display the amount of each token held. For transferring tokens, the transferToken function allows you to specify the source wallet, destination address, token ID, amount, and gas fee preferences. After initiating a transfer, use the checkTransferState function with the transaction ID to monitor its status.

Benefits of Developer-Controlled Wallets

Developer-controlled wallets offer several advantages:

• No User Permissions Required: Unlike user-controlled wallets, there's no need to obtain permissions from users for each transaction.
• Gas Fee Abstraction: Circle's smart contract accounts support gas station features, allowing developers to sponsor gas fees, enhancing user experience.
• Streamlined Development: The process feels similar to traditional web development, making it more accessible for developers transitioning to blockchain applications.

It's essential to note that while developer-controlled wallets offer convenience, certain applications may still require user-controlled wallets based on specific project needs.

Conclusion

By following this guide, you've learned how to set up developer-controlled wallets using Circle's SDK. This approach provides a seamless and efficient method for managing digital assets, especially when working with stablecoins like USDC. Remember to store your entity secret, cipher text, and recovery file securely, and always update your .env file with the latest configurations