Address Derivation

The Nero MPC SDK creates wallets using either DKLS or Pedersen DKG protocols. The protocol you choose determines the wallet type, key generation method, and storage strategy.

Protocol Comparison

Aspect	DKLS	Pedersen DKG
Parties	2-party threshold ECDSA	Multi-party (typically 2+)
Wallet Type	EOA (Externally Owned Account)	Smart Wallet (ERC-4337)
Configuration	`protocol: "dkls"`	`protocol: "pedersen"`
Key Generation	`DKLSClient.executeKeygen()`	`DKGClient.execute()`
Storage Key	`secretShare` in DKLS storage	`privateShare` in KeyManager
Account Abstraction	No	Yes (via SimpleAccount)
Default	Yes (since v2.0)	Legacy option

Wallet Generation

The primary wallet generation method is NeroMpcSDK.generateWallet(), which routes to the appropriate protocol-specific implementation based on the configured protocol.

const wallet = await sdk.generateWallet();

console.log("EOA Address:", wallet.eoaAddress);
console.log("Smart Wallet:", wallet.smartWalletAddress);
console.log("Public Key:", wallet.publicKey);

WalletInfo Interface

interface WalletInfo {
  eoaAddress: string;
  smartWalletAddress?: string;
  publicKey: string;
  protocol: 'dkls' | 'pedersen';
  chainId: number;
  createdAt: Date;
}

DKLS Wallet Generation

DKLS wallet generation uses a 2-party threshold ECDSA protocol coordinated via the backend API:

Initialize keygen session on backend
Execute protocol rounds with server
Store client's key share in browser storage
Derive wallet address from public key

DKLS Storage

Storage Type	Use Case	Persistence
`IndexedDBStorage`	Standard browser environment	Persistent across sessions
`MemoryStorage`	Fallback or testing	Session-only (cleared on page refresh)

Storage uses the storagePrefix from your SDK configuration (default: "nero").

function createDKLSStorage(config: SDKConfig): StorageAdapter {
  if (indexedDBAvailable()) {
    return new IndexedDBStorage(config.storagePrefix);
  }
  return new MemoryStorage(config.storagePrefix);
}

Pedersen DKG Wallet Generation

Pedersen DKG uses a distributed key generation protocol with Verifiable Secret Sharing Scheme (VSSS) commitments:

Initialize DKG session via API
Exchange commitments and shares through WebSocket
Verify VSSS commitments locally
Store cryptographic material in ClientKeyManager
Create SmartWallet instance

interface KeyShareData {
  privateShare: string;        // Hex-encoded
  publicShare: string;         // Hex-encoded
  commitments: string[];       // VSS commitments
  threshold: number;
  totalParties: number;
  partyId: number;
}

Smart Wallet Creation

const smartWallet = new SmartWallet({
  keyShare: dkgResult.keyShare,
  publicKey: dkgResult.publicKey,
  chainId: config.chainId,
  bundlerUrl: config.bundlerUrl,
  paymasterUrl: config.paymasterUrl,
});

Wallet Restoration on SDK Startup

When the SDK initializes with existing authentication tokens, it attempts to restore wallet state from stored key material:

async initializeWallet(): Promise<void> {
  if (this._protocol === 'dkls') {
    const address = await this.dklsStorage.get('wallet_address');
    this._dklsWalletAddress = address;
  } else {
    const keyShare = await this.keyManager.getKeyShare();
    if (keyShare) {
      this._wallet = await this.createSmartWallet(keyShare);
    }
  }
  this.emit('wallet_restored');
}

Listing Wallets

Retrieve all wallets associated with the authenticated user across projects:

const wallets: WalletInfo[] = await sdk.listWallets();

Key Material Access

The getKeyMaterial() method reconstructs the full private key on the client, enabling instant offline signing. This method is rate-limited.

const key: ReconstructedKey = await sdk.getKeyMaterial();

Rate limiting:

Default limit: 5 calls per hour
Configurable per application
Throws RateLimitError when exceeded

State Machine Properties

Property	Type	Description
`isAuthenticated`	`boolean`	User is logged in with valid tokens
`hasWallet`	`boolean`	Wallet generation complete and usable
`walletReady`	`boolean`	Wallet loaded and initialization complete
`keyShareStored`	`boolean`	Client key share persisted locally

Error Handling

Error	Cause	Recovery
`RECOVERY_REQUIRED`	Client key share missing from storage	Call `setupSelfCustodyRecovery()`
`DKG_FAILED`	Protocol rounds failed or timeout	Retry wallet generation
`INVALID_STATE`	Wallet already exists	Call `getWalletInfo()` to retrieve
`NETWORK_ERROR`	Backend unreachable	Check connection and retry

try {
  const wallet = await sdk.generateWallet();
} catch (error) {
  if (error.code === 'RECOVERY_REQUIRED') {
    await sdk.setupSelfCustodyRecovery();
  } else if (error.code === 'DKG_FAILED') {
    setTimeout(() => sdk.generateWallet(), 5000);
  }
}

Address Derivation

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