blockchain wallet is a tool for managing blockchain keys and addresses.
It helps users manage crypto assets and prove asset control through private key or seed phrase.
It can be simply understood as follows:
Address = bank card number
private key = bank card number + PIN code
seed phrase = backup information for restore wallet
Wallets can generally be classified by the following criteria:
Whether the user owns private key or seed phrase
Where is private key or seed phrase stored?
Whether private key or seed phrase is in contact with the network
Does the wallet support a single currency or multiple assets?
1. Whether the user holds private key or seed phrase
on-chain wallet: The user holds private key himself, and the transaction will be recorded on blockchain.
Hosted wallet: private key is kept by a third-party platform or wallet service provider, and transfers within the platform may not be directly recorded on blockchain.
2. Where is private key or seed phrase stored?
Software wallet: A wallet that is usually installed on a computer, mobile phone, or browser and does not require the purchase of additional specialized hardware.
hardware wallet: Generate and save private key through a dedicated hardware device, and complete the transaction signature within the device.
3. Whether private key or seed phrase is in contact with the network
Depending on whether private key comes into contact with the network, wallets can be divided into hot wallets and cold wallet.
cold wallet usually keeps private key offline to reduce the risk of remote theft.
Common forms of cold wallet include:
hardware wallet (private key saved via dedicated device)
Paper wallet (write private key or seed phrase on paper)
Brain wallet (restore wallet via memory information)
Hot wallets are internet-connected wallets that can be accessed through a browser, desktop, or a mobile device.
4. Does the wallet support a single currency or multiple assets?
Single-currency wallets usually only support a certain blockchain asset.
Multi-currency wallets can support multiple blockchain assets.
UKey software wallet (App and browser extension):
1. seed phrase is controlled by the user himself, and transactions occur on blockchain.
2. seed phrase will be encrypted and stored in the local device, such as a mobile phone or computer.
3. seed phrase is not completely isolated from the network, so it is a hot wallet.
Support more currencies. See the BIP32 and BIP39 protocols for details.
UKey hardware wallet:
1. seed phrase is controlled by the user himself, and transactions occur on blockchain.
2. seed phrase is generated and protected by a security chip, private key will not leave hardware wallet.
3. private key is isolated from the network environment and therefore belongs to cold wallet.
Support more currencies. See the BIP32 and BIP39 protocols for details.
Note: Users need to be responsible for their own seed phrase. If seed phrase is lost, UKey cannot help you retrieve it.
You can visit: Software Wallet and hardware wallet, to learn more about the differences between the two.
About seed phrase and private key
seed phrase typically functions in the following way:
The system first generates a string of random numbers and maps them to words in the vocabulary.
seed phrase will further generate seeds.
Seeds are used to generate private key and public key.
private key can derive its children private key and its children public key, and public key can also derive its children public key.
It can also be written as: seed phrase → seed → main private key → child private key → public key → address. For more details, please refer to the BIP32 and BIP39 protocols.
1. Why not import hardware wallet seed phrase into the hot wallet?
The design goal of UKey hardware wallet is to keep private key and seed phrase as far away from the network environment as possible.
UKey hardware wallet generates and protects critical data such as seed phrase, seeds and private key through a security chip.
If hardware wallet's seed phrase is imported into a hot wallet, seed phrase will come into contact with the Internet environment, and the isolation protection originally provided by hardware wallet will also become invalid.
2. Why are there so many addresses in UKey hardware wallet?
The main public key can derive multiple child public key, and the child public key can generate multiple addresses. Related mechanisms can refer to protocols such as BIP32 and BIP39.
3. What should I do if I have imported hardware wallet seed phrase into a hot wallet (mobile App, MetaMask, etc.)?
There are assets in the wallet: please transfer the assets first, then reset hardware wallet and create a new wallet.
No assets in the wallet: You can directly reset hardware wallet and create a new wallet.