What is a Wallet#
A wallet is one of the essential tools for newcomers to enter the blockchain. The content stored in the blockchain wallet is not encrypted assets, but addresses and private keys used to store account information, which can be simply understood as a bank card. They are just tools to manage your assets, and the real assets are still on the chain.
Concepts Related to Wallets#
Password
When creating a wallet (account), we generally need to set a password ourselves. The password has the following two functions:
• The password is required when transferring funds to others.
• When importing wallet information using a keystore, the password is also required. "Never tell anyone."
Wallet Address
After creating a wallet and entering the password, the system will generate a pair of keys for us, a public key and a private key. The wallet address is generated by the public key through calculation, mainly used for receiving payments, similar to a bank account number, while the password is equivalent to a bank card PIN.
Private Key
After creating a wallet and entering the password, the system will generate a pair of keys for us, a public key and a private key. Each private key corresponds to a wallet address, owning the private key means owning the wallet, and a wallet address has only one private key that cannot be changed. By entering the private key and setting a password (a new password, not the original one), you can access the wallet and own the assets in the wallet, allowing you to transfer the assets. Therefore, the private key is equivalent to the wallet address and password, so it must be properly safeguarded, "Never tell anyone."
Mnemonic Phrase
As mentioned earlier, the private key is generated by cryptography, consisting of multiple random characters that are difficult for the human brain to remember. Hence, the mnemonic phrase was introduced to help with recording and memorization.
The mnemonic phrase consists of 12 words, with a space between each word. Like the private key, a wallet has only one set of mnemonic phrases that cannot be changed. "Never tell anyone."
Keystore
The wallet has a backup Keystore function. By selecting backup Keystore, a JSON file will be downloaded, which is the Keystore.
When importing a wallet, you only need to enter the Keystore and password (the password used to export the wallet) to access the wallet. This is different from importing a wallet using a private key or mnemonic phrase, as the latter two do not require knowledge of the original "password" but directly reset the "password." Keystore can be understood as an encrypted private key related to the wallet password. When the wallet password is changed, the Keystore also changes accordingly.