Common Terms

This is a list of terms you might encounter when using the TokenPocket Extension.

A public and private keypair that "holds" your funds.
Your funds are actually stored on the blockchain, not in the wallet or account.
Just like your Reddit account has a username (public) and password (private), so does your Ethereum account. For additional security, You can use a password to encrypt your private key, which would result in a more secure combination of username (public), password (private) and passphrase (private + more secure). See the Keystore File section.

The public key is equivalent to your bank card number. It can be made public without any risk.

The private key consists of numbers and uppercase and lowercase letters, and the length in different block chains generally varies. Private key = bank card + password = identity authentication. The public key can be derived from the private key. It should be noted that once your private key is lost or forgotten, it cannot be retrieved again. Please keep it safe.

The essence of Keystore is the encrypted private key. Keystore must be used with your wallet password to be valid. keystore = private key / secret recovery phrase + password. Keystore, private key, secret recovery phrase are common to all wallets, and wallet service providers may only provide one or more of them due to product design. However, if there is a wallet that cannot be restored normally in either of them, there may be some problems with the wallet.

Since the private key is hard to memorize, secret recovery phrase appear. The private key can be calculated by Secret recovery phrase. In general, Secret recovery phrase consist of 12 or 24 words. As long as you remember these single words and enter them in the wallet in sequence, you can recover the wallet and conduct any operation. If someone gets your secret recovery phrase, it is equivalent to getting your private key, that’s very dangerous.

In order to enhance the security, most wallets will use the password to encrypt the private key. The encryption method and storage method of each wallet are different. When you use a wallet to make a transaction, you always have to approve, and the logic behind that is to decrypt your private keys and use it to sign a transaction.

Typically, a single-purpose device that "holds" your private key(s), ensuring your private keys are safe.
Typically, they use a 24-word phrase. This phrase you should write down (not on your computer) and store separately from your hardware wallet.
If you lose your hardware wallet, you can still gain access to your accounts and funds via the secret recovery phrase you wrote down.
Never type the secret recovery phrase on your computer. It defeats the purpose of your hardware wallet.

Last updated 1 year ago