Unlocking Simplicity: Exploring Okto’s Decentralized Wallet Network (DWN)

TL;DR

The Decentralized Wallet Network (DWN) is a network of secure, independent nodes that collectively manage user wallets in a trust-minimized manner and unifies multiple blockchains into a single wallet experience. It simplifies blockchain interactions by consolidating various networks into one secure interface. By eliminating the complexities of managing private keys, juggling separate wallets, and navigating multi-chain transactions, the DWN keeps users in complete control of their assets.

• Unified Wallet Experience: One decentralised wallet to access multiple blockchains

• User-Friendly: Simplifies onboarding with Web2-style logins while maintaining self-custody.

• Advanced Security: Multi-Party Computation (MPC) ensures no single point of failure for private keys.Developer

• Integration: Easily embed DWN functionality into apps via Okto’s SDKs.

Introduction: The Multi-Chain Challenge

Blockchain is changing faster than ever. As new chains emerge and more people flock to decentralized apps (dApps), the need for user-friendly wallet solutions has never been greater. Okto’s Decentralized Wallet Network (DWN) is designed to meet this need, offering simplified crypto transactions for both newcomers and experienced users.

In the previous blog, we introduced the Okto Layer, highlighting how it simplifies Web3 through four main components—DWN, ULL, DTN, and Okto Chain. Today, we’ll explore the DWN in depth, looking at how it uses advanced cryptography, a distributed infrastructure, and intuitive user interfaces to make multi-chain operations feel nearly effortless.

DWN vs. “Traditional” Wallets

To understand why the DWN is a breakthrough, let’s first consider why conventional crypto wallets often struggle in a multi-chain environment:

1. Fragmentation
   
   Managing separate wallets and seed phrases for different chains can be confusing. Users often lose track of which private key controls which account, leading to frustration and potential loss of access.
   
   

2. Security Risks
   
   Relying on a single private key can be risky—if compromised, it can lead to significant losses. On the other hand, fully centralized wallets place too much trust in a single entity, which could be hacked or fail.
   
   

3. Tedious Onboarding
   
   Explaining seed phrases, private keys, and gas tokens to newcomers is daunting. This complexity is a major barrier to wider adoption of blockchain technology.

The DWN addresses these challenges by combining advanced cryptographic security, multi-chain support, and a user-friendly onboarding process—all under one roof.

What is the Decentralized Wallet Network?

The Decentralized Wallet Network is a network of secure, independent nodes that collectively manage user wallets in a trust-minimized manner. Instead of treating a wallet as a basic “bank account” on just one or two networks, the DWN abstracts the underlying complexities so a single wallet can function across multiple chains—Ethereum, Solana, Aptos, and many others.

Within the Okto infrastructure, the DWN is responsible for two core functions:

1. Creating user and vendor wallets across all supported chains: Acting as a unified gateway for wallet creation across multiple blockchain ecosystems.
   
   

2. Transaction signing: Coordinating a decentralized network of signing nodes to securely authorize transactions without any single point of failure.

In simpler terms, the DWN acts as a “universal wallet layer” that hides blockchain intricacies from users. The users retain full control over their funds—no single party (not even Okto) can unilaterally access them—yet dealing with different networks becomes as straightforward as clicking a button.

How DWN Works Under the Hood

Behind the scenes, the DWN relies on a network of MPC (Multi-Party Computation) nodes that safely generate signatures whenever a user’s transaction needs approval. Below are the key elements that make this possible:

EigenLayer AVS

The DWN’s secure nodes are deployed on EigenLayer’s Actively Validated Services (AVS), a framework that leverages Ethereum's robust security through restaking. Rather than building security from scratch, DWN inherits strong security guarantees from Ethereum's proof-of-stake system. This setup ensures:

• Network Security: AVS operators must stake significant assets across multiple systems including Ethereum mainnet. This creates a powerful economic deterrent - any malicious behavior risks their entire staked position, not just within Okto but across the broader EigenLayer ecosystem.

• Independent Operators: EigenLayer’s AVS ensures that the nodes come from various trusted providers, reducing the chance of collusion.

• Economic Security: By leveraging EigenLayer, the DWN inherits strong security guarantees without having to build its own massive network from scratch.

Multi-Party Computation (MPC)

Multi-Party Computation (MPC) forms the backbone of the DWN’s security. Rather than using a single private key to sign a transaction, multiple nodes work together to generate a signature—never actually revealing or gathering the full private key in a single place.

• Threshold Signature Scheme (TSS): A predefined threshold (e.g., 11 of 20 nodes) must cooperate to sign a transaction. This setup prevents any single party (even Okto) from unilaterally moving your funds.

• Secure Computation: Every node runs cryptographic protocols in isolation, ensuring that no single shard is ever exposed. This keeps the attack surface minimal compared to a single-key setup.

Through an 11/20 MPC signing scheme (developed with Silence Laboratories and other partners), Okto guarantees that no single organization can override user consent or compromise the signature process.

Trusted Execution Environments (TEEs)

Each MPC node operates within a Trusted Execution Environment (TEE), like Intel SGX. This isolates sensitive cryptographic operations from the node’s main operating system. Even if a node’s broader system were breached, the TEE would safeguard the cryptographic processes. This extra layer greatly diminishes the likelihood of key theft, algorithm tampering or unauthorized signatures.

Example Flow: How DWN Signs a Transaction

To illustrate how the DWN operates, let’s break down the process into two phases: Authentication & Session Registration and Transaction Signing. We’ll use the example of minting a SoulBound NFT across chains.

(Note: Throughout this flow, we'll touch on several key components of the Okto infrastructure like Auth Module and Gateway. While we'll briefly explain their roles here, each deserves its own deep dive, which we'll cover in future blog posts.)

Phase 1: Authentication & Session Registration 

How users securely onboard and establish trust with the DWN.

1. User Initiates Login

When you tap "Sign In", your client application (the dApp) generates a session key pair. Think of this as your temporary ID card - the private key stays securely on your device, while the public key gets registered with Okto.

2. Authentication Request to Okto Gateway

With your session key pair ready, your client creates an authentication request to the Gateway via the SDK. The Gateway is the JSON RPC node for the Okto Chain and the entry point for all interactions with Okto's infrastructure. This request bundles your login credentials (like a Google OAuth token) and your session public key and a signature proving you own the session key.

3. Decentralized Verification via Auth Module

The Gateway forwards the request to the Auth Module. Here, a network of decentralized nodes independently verify your credentials with auth providers like Google. A majority consensus among nodes ensures no single party can spoof authentication. Once a majority is reached the request is passed to the DWN.

4. Key Generation & User Setup

Once your identity is verified, DWN springs into action. It generates your blockchain identity if not already created, by generating cryptographic keys (ECDSA/EdDSA) using Multi-Party Computation (MPC). Public Keys of the session and wallet address are then relayed to the Okto Chain.

5. On-Chain Registration

The final step of setup involves registering your identity on the Okto Chain through a User Operation (UserOp). This links your session key to your Smart Wallet Account (SWA), establishing your ability to sign transactions.

Phase 2: Transaction Signing Flow 

Once authenticated, here's how the DWN handles the actual NFT minting process while keeping users in control:

1. Initiate Transaction

With your session active, you tap "Mint NFT" in your dApp. The client prepares a UserOp containing:

Intent: “Mint SoulBound NFT on Ethereum.”Session signature: Signed with your session private key.

2. Submit to Okto ChainThe UserOp is sent to Okto Gateway, which verifies the session signature via Okto Auth Service.A valid UserOp is broadcast to Okto Chain, where it’s validated on-chain. The SWA’s smart contract checks if the session key is authorized and Policy checks are enforced.

3. Decentralized Transaction Network (DTN) Takes Over

Upon validation, a job is created on the Okto chain, emitting an event for DTN to process. When a DTN node picks up this job, it fetches the necessary transaction details (e.g., NFT contract, recipient, gas information) and constructs the raw transaction payload needed for minting your NFT. The hash of the payload is also registered against the job on Okto chain.

4. MPC Signing via DWN Nodes

The DTN sends the payload to the DWN’s Signing Service. The DWN nodes first verify that the payload's hash matches what was registered on the Okto Chain, ensuring they don't need to trust the DTN directly. Only after this verification, the network of nodes collaborate using MPC to generate the signature through a Threshold Signature Scheme. No node ever sees the complete private key.

5. On-Chain Execution

The DTN receives the signed transaction and broadcasts the transaction to the target blockchain. But its job isn't done - DTN actively monitors the transaction status, keeping the Okto Chain updated on its progress. Once the transaction is confirmed on the target chain, DTN updates the job status and transaction hash on the Okto Chain, completing the minting process.

Features That Set DWN Apart

Finally, let's explore the key features that make the DWN a game-changer for blockchain users and developers alike.

Account-Agnostic Support

Whether you use an Externally Owned Account (EOA) on Ethereum, a Solana address, a 4337 contract wallet, magic account, an EVM account in the post-Pectra world, or you have never used a web3 wallet and use social login the DWN treats each as a “sub-account” within one universal user profile. You interact with a single wallet interface, yet each chain functions smoothly in the background.

One Interface, Many Chains

Imagine holding BNB on BNB Chain, USDC on Polygon, and SOL on Solana. Normally, you’d need multiple wallets or private keys to manage all these assets. With Okto’s DWN:

You log in using a familiar Web2-style method (e.g., Google, Facebook, or email).Instantly, you can view all your assets across different chains on one dashboard.You can now execute complex blockchain transactions with simple clicks.

For example, want to move USDC from Polygon to BNB Chain and then stake it? With the Okto Layer and its DWN, that's just one action. The Decentralized Transaction Network (DTN) handles all the complex steps while DWN manages the signatures behind the scenes.

Embedded Wallets

While the DWN powers the backend, users access its features through something we call embedded wallets. These wallets come in two flavors:

• Closed-Loop Wallets: Restricted to a particular platform or dApp, simplifying user experience within a controlled environment. Great for new wallets or specialized use cases.

• Interoperable Wallets: Designed to work across various networks and platforms, enabling broader freedom and control.

By using Okto’s Simple SDKs, developers can easily incorporate embedded wallets into their web or mobile apps. These embedded wallets are implemented as ERC-4337 smart contract wallets on EVM chains, while functioning as native wallets on chains like Solana and Aptos. These wallets leverage the DWN's features, providing users with a clear view of their assets and makes blockchain transactions feel natural and easy.

Conclusion

Okto’s Decentralized Wallet Network isn’t just a wallet—it’s a gateway to a frictionless Web3. By merging MPC, decentralized infrastructure, and intuitive design, DWN empowers users to explore blockchain’s potential without drowning in complexity. For developers, it’s a toolkit to build chain-agnostic apps; for users, it’s freedom to transact, stake, or mint across chains with one click.

The future of crypto is multi-chain, and with DWN, that future is simple, secure, and accessible to all.

Stay tuned for upcoming blog posts that dive into the Unified Liquidity Layer (ULL), Decentralized Transaction Network (DTN), and the Okto Chain, rounding out the final pieces of the Okto Layer puzzle.