> For the complete documentation index, see [llms.txt](https://docs.squads.so/main/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.squads.so/main/squadsx-beta-development/understanding-the-squadsx-extension-wallet.md).

# Understanding the SquadsX Extension Wallet

Technically, SquadsX is a Wallet Standard-compliant browser extension wallet. It holds the private key of a Squad member, which it uses for signing transactions. While linked to applications, SquadsX communicates the Squads Multisig Vault PDA as the active address. The transaction signing process occurs behind the scenes as follows:

1. The application creates an original transaction (OT) that uses the Vault as the "signer" address.
2. SquadsX disassembles the OT, crafting a new Multisig Transaction (MT) from the OT's instructions. Essentially, the MT is a transaction that saves the instructions on-chain, allowing for later execution upon multisig member approval.
3. SquadsX uses the member's private key to sign the MT, returning a signed MT that "wraps" the OT back to the application.
4. The application submits the signed MT to an RPC node, creating a new Squads Multisig Transaction account on-chain.
5. With the completion of the app-side process, an asynchronous voting procedure starts, usually conducted in the Squads app or an alternative user interface.
6. Once the Squads Multisig Transaction receives approval, the transaction execution commences within the Squads app, implementing the instructions contained within the OT via one or more CPI calls "signed" by the Vault PDA.


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