Wallets and Sub-Wallets: How They Work

The Wallet (Parent):

• Serves as the main repository for digital assets.
• Sets security policies, such as spending rules and transaction thresholds, which apply to all Sub-Wallets.
• Simplifies multi-blockchain asset management by centralising control.

Sub-Wallets (Children):

• Represent specific blockchains based on their transaction model:
  • Account-Based Transactions: Blockchains like Ethereum and those supporting ERC-20 tokens.
  • UTXO-Based Transactions: Blockchains like Bitcoin.
• Automatically inherit security policies from the parent Wallet.
• Ensure each blockchain’s assets are securely and efficiently managed.

Blockchain Address Assignment

Each Sub-Wallet is assigned blockchain addresses to manage incoming funds, with functionality tailored to its transaction model:

1. Account-Based Sub-Wallets (e.g., Ethereum, ERC-20 Tokens):

• Use a single receiving address for all assets managed by the blockchain, including the native token (e.g., ETH) and supported tokens (e.g., ERC-20).
• This unified address simplifies tracking and management of assets for blockchains using account-based transactions.

2. UTXO-Based Sub-Wallets (e.g., Bitcoin):

• Feature multiple receiving addresses, enhancing privacy by avoiding address reuse.
• Include change addresses for managing leftover funds from transactions:
  • Dynamic Change Addresses: New change addresses are automatically created for every transaction, improving privacy and security.
  • Fixed Change Address: Users can configure a fixed change address for simplified reconciliation and bookkeeping.

This flexibility allows UTXO-based Sub-Wallets to cater to both privacy-focused users and those prioritising operational simplicity.

Spending Rules and Security Policies

TrustVault Wallets offer customisable spending rules and thresholds, ensuring secure and controlled asset management. These policies apply consistently across all Sub-Wallets, providing a unified security framework.

For an in-depth explanation of Wallet capabilities and spending rules, refer to:

• TrustVault Wallet Capabilities, Spending Rules, and Threshold Sending Rules

Creating and Managing Sub-Wallets

Need to add new Sub-Wallets to manage assets on additional blockchains? Follow our guide here:

• Creating Additional Sub-Wallets

Key Takeaway

TrustVault Wallets and Sub-Wallets provide a secure, flexible, and user-friendly way to manage digital assets across multiple blockchains, regardless of their transaction model. Whether you're managing account-based assets, like Ethereum and ERC-20 tokens, or UTXO-based assets, like Bitcoin, the Wallet structure ensures ease of use while maintaining robust protection.

If you have further questions, feel free to explore our help centre or contact support.