Wallet Creation and Management

Process of Our Wallet Creation in the Application

There are a number of ways to secure information for your crypto wallet, but the most secure ones are hardware wallets. Hardware wallets are physical devices that store your private keys offline, making them much more difficult to steal than software wallets.

To create a crypto wallet, you will need to generate a private key and a wallet address. Your private key is a secret code that allows you to sign transactions and prove that you own the funds in your wallet. Your wallet address is a public key that is used to receive transactions.

Steps to create a crypto wallet

1. Choose a wallet type. There are three main types of crypto wallets: hardware wallets, software wallets, and paper wallets. Hardware wallets are the most secure, but they can also be the most expensive. Software wallets are less secure than hardware wallets, but they are more convenient to use. Paper wallets are very secure, but they can be easily lost or damaged.
2. Generate a private key and wallet address. You can use a variety of methods to generate a private key and wallet address, such as using a cryptographically secure random number generator (CSPRNG), a hardware security module (HSM), or a mnemonic phrase.
3. Store your private key and wallet address in a secure location. If you are using a hardware wallet, your private key will be stored on the device. If you are using a software wallet or paper wallet, you will need to store your private key in a secure location, such as a password manager or a safe.

Once you have generated a private key and wallet address, you can start using your crypto wallet to send and receive transactions.

Private Key Generation

Private Key Generation

Our wallet will generate private keys using a cryptographically secure random number generator (CSPRNG). The CSPRNG will generate a random sequence of bytes, which will then be used as the private key.

Private Key Storage

Our wallet will support two methods for storing private keys:

• Hardware wallet: Users will be able to store their private keys on a hardware wallet. Hardware wallets are physical devices that store private keys offline, making them very secure.
• Encrypted storage: Users can also store their private keys in encrypted storage on their device. The private keys will be encrypted using a strong encryption algorithm and a user-provided password.

Technical Implementation

Our wallet will use the following technical components to achieve secure and reliable private key generation and storage:

• Secure CSPRNG: We will use a secure CSPRNG to generate private keys. This will ensure that the private keys are generated in a way that is unpredictable and secure.
• Elliptic curve cryptography (ECC): We will use ECC to protect the private keys. ECC is a cryptographic algorithm that is widely used in blockchain and cryptocurrency systems.
• AES-256 encryption: We will use AES-256 encryption to encrypt private keys stored on the device. AES-256 is a strong encryption algorithm that is difficult to crack.
• Key derivation functions (KDFs): We will use KDFs to derive strong passwords from user-provided passwords. This will make it more difficult for attackers to crack the encryption on the private keys.

Conclusion

Our wallet will use secure and reliable methods for generating and storing private keys. This will help to protect our users' funds from theft.

Additional Security Considerations

In addition to the technical measures described above, we will also implement the following security measures to protect our users' private keys:

• Two-factor authentication (2FA): We will require 2FA for all sensitive operations, such as sending transactions and managing wallet settings. 2FA will help to protect users' accounts from unauthorized access.
• Security audits: We will regularly have our wallet security audited by independent security experts. This will help to identify and fix any security vulnerabilities.
• Transparency: We will be transparent about our wallet security practices. We will publish documentation and blog posts explaining how we generate and store private keys. We will also be responsive to user feedback and concerns about security.

Recovery Options in Our Secure, Decentralized Auth Based Wallet

Our wallet will support multiple wallet recovery options, including:

• Mnemonic phrase: The user will be able to generate a mnemonic phrase, which is a list of words that can be used to recover the wallet. Mnemonic phrases are easier to remember than private keys, and they can be used to recover a lost wallet even if the user does not have access to the device where the private key was stored.
• Seed phrase: The user will also be able to generate a seed phrase, which is a shorter and easier to remember mnemonic phrase. Seed phrases can be used to recover multiple wallets, which can be useful for users who manage multiple cryptocurrency accounts.
• Social recovery: The user will be able to set up social recovery, which allows them to recover their wallet using a trusted group of friends or family members. This can be useful if the user loses their mnemonic phrase or seed phrase, or if they are unable to access their device.

Technical Implementation

Our wallet will use the following technical components to implement secure and reliable wallet recovery options:

• BIP39: We will use BIP39 to generate mnemonic phrases and seed phrases. BIP39 is a standard for generating mnemonic phrases that is widely used in cryptocurrency wallets.
• Shamir's Secret Sharing: We will use Shamir's Secret Sharing to implement social recovery. Shamir's Secret Sharing is a cryptographic algorithm that allows a secret to be divided into multiple shares, such that any subset of shares can be used to reconstruct the secret.

Conclusion

Our wallet will support multiple wallet recovery options to give our users peace of mind. With our wallet, users can be confident that they will be able to recover their wallet even if they lose their mnemonic phrase, seed phrase, or device.

Additional Security Considerations

In addition to the technical measures described above, we will also implement the following security measures to protect our users' wallet recovery options:

• Mnemonic phrase encryption: We will encrypt the mnemonic phrase before storing it on the device. This will make it more difficult for attackers to steal the mnemonic phrase, even if they are able to access the device.
• Social recovery threshold: We will allow users to set a social recovery threshold. This means that the user will need to obtain a certain number of shares from their trusted group of friends or family members in order to recover their wallet. This helps to protect the user's wallet from unauthorized recovery.
• User education: We will educate our users about the importance of backing up their wallet recovery options. We will also provide guidance on how to choose a trusted group of friends or family members for social recovery.