By default, the user will authenticate with their embedded wallet using Passkeys (which interact via secure enclaves). Passkeys and secure enclaves are ideal for mobile-first application experiences and cross-device use cases.

By simple analogy, passkeys and secure enclaves are similar to a safety deposit box vault. That is, your end users have a key to access their locked box (i.e., wallet), while enjoying the benefits of having the box secured with vault-level security. The safety deposit box is inside the vault, but only the end user, with their key, can access the contents inside the box.

Once a user completes authentication (email or social), they will receive a prompt to create a passkey (TouchID, FaceID), after which they will automatically get a wallet, and can sign transactions using that passkey.

Since passkeys are synced using a keychain (e.g. iCloud, Google Password Manager, 1Password), end-users can use their passkeys across other devices once they authenticate.

Technical Deep Dive

You have installed the Dynamic SDK, chosen your end-user auth method, and enabled embedded wallets. The End User comes to your website and initiates account creation, what actually happens now?

  1. Dynamic authenticates the End User via Email OTP or Social Sign-in.
  2. After authentication, the user is prompted to create a passkey, which leads to embedded wallet creation.
  3. The user’s device requests a biometric. A passkey is generated.
  4. Dynamic sends a Challenge (a random sequence of numbers of letters), which is automatically signed, forming a signature to confirm user control. The user’s credential is safeguarded in their device’s enclave.
  5. Post-signature, Dynamic instructs, our non custodial key management provider to create a wallet.
  6. Turnkey checks passkey details and links them with the user, an action encrypted in an AWS Nitro Enclave. Dynamic receives a UUID to associated the key with its user.
  7. With a confirmed wallet, users can secure transactions using the passkey.

Technical Diagram

Important notes