Non-Custodial Architecture
Your keys, your crypto. Learn how Grofty ensures you're always in control.
What is Non-Custodial?
A non-custodial wallet means your private keys and mnemonic phrases never leave your device. Unlike traditional wallets where a company holds your keys, Grofty ensures that only you have access to your funds.
Traditional Wallet (Custodial)
You → Company (holds keys) → Blockchain
Company has access to your funds
Grofty (Non-Custodial)
You (hold keys) → Blockchain
Only you have access to your funds
What We Store
Transparency about data storage
| Data | Your Device | Our Servers |
|---|---|---|
| Mnemonic Phrase | Encrypted | Never |
| Private Key | Derived on-demand | Never |
| Public Key | Yes | Yes (public data) |
| Party ID | Yes | Yes (public data) |
| PIN | For encryption only | Hash only |
Encryption Details
How your mnemonic is protected
Your mnemonic is encrypted using industry-standard cryptography:
- Argon2id - Memory-hard key derivation from PIN
- AES-256-GCM - Authenticated encryption
- Random IV - Unique for each encryption
- Local storage only - Never transmitted
Transaction Signing Process
How transactions are signed securely
When you send a transaction:
- Backend prepares transaction → returns hash
- Extension decrypts mnemonic with PIN
- Extension derives private key (in memory only)
- Extension signs hash with private key
- Extension sends signature to backend
- Private key is garbage collected
- Backend submits signed transaction
Key Point
Your private key exists in memory for milliseconds only during signing, then disappears.
Security Guarantees
What this means for you
- Even if our servers are compromised, your funds remain safe
- We cannot access your funds or sign transactions on your behalf
- You can recover your wallet on any device with your mnemonic
- Open source code - anyone can audit our security