updated readme

Author: Thunkar

README.md

@@ -1,9 +1,89 @@
 # demo-wallet
 
-## Note for Mac users
+An Aztec wallet application that allows dApps to interact with user accounts through a secure interface.
+
+## Development Setup
+
+### Prerequisites
+
+- Node.js v22
+- yarn
+- A running Aztec local node (or access to a remote node)
+
+### Running in Development Mode
+
+Follow these steps to run the wallet in development mode:
+
+1. **Install dependencies**
+
+   ```bash
+   cd app
+   yarn install
+   ```
+
+2. **Start the wallet application**
+
+   ```bash
+   yarn start
+   ```
+
+3. **Install and run the browser extension**
+
+   ⚠️ **Important**: The browser extension must be running for the app to work properly.
+
+   The extension is located at `extension`. To set it up:
+
+   ```bash
+   cd extension
+   yarn install
+   yarn dev
+   ```
+
+   This will launch a browser with the extension preloaded
+
+   **Loading the extension in your browser:**
+
+   **For Chromium-based browsers (Chrome, Brave, Edge):**
+
+   1. Open your browser and navigate to the extensions page:
+      - Chrome: `chrome://extensions`
+      - Brave: `brave://extensions`
+      - Edge: `edge://extensions`
+   2. Enable "Developer mode" (toggle in the top-right corner)
+   3. Click "Load unpacked"
+   4. Select the `extension/.output/chrome-mv3-*` directory
+
+   **For Firefox:**
+
+   ```bash
+   yarn zip:firefox
+   ```
+
+   1. Navigate to `about:debugging#/runtime/this-firefox`
+   2. Click "Load Temporary Add-on"
+   3. Select the created .zip file under `extension/.output/*`
+
+   The extension provides the interface between dApps and the wallet.
+
+### WebSocket Communication
+
+The wallet currently uses **WebSocket communication** for dApp-to-wallet messaging.
+
+⚠️ **Port Requirements**:
+
+- Ensure port **8765** is available on your machine
+- If port 8765 is in use, you'll need to modify the configuration in `app/src/workers/ws-worker.ts`
+
+📝 **Note**: This WebSocket-based communication is temporary. The architecture should ideally use the browser's native extension-to-native-app communication system (Native Messaging API) instead, which would eliminate the need for managing ports and provide better security.
+
+## Production Usage
+
+### Note for Mac users
 
 After downloading a release, run:
 
-`xattr -d com.apple.quarantine ./app.app`
+```bash
+xattr -d com.apple.quarantine ./app.app
+```
 
-To avoid the "this app is damaged" message
+To avoid the "this app is damaged" message.