You don’t understand blockchain, you should start from using wallet

Time:2020-3-31

Today, blockchain has become a household name. It is believed that in addition to the industry, blockchain is being or has been deeply dug by traditional industries. Whether it is the popularization of technology or the application of scenarios, or the digital currency based on technology, the prospect is not optimistic.
First of all, the blockchain technology has undergone a long development and evolution, from the early stage mainly used to solve the dual payment problem of digital currency to now involving all walks of life; from the past low performance to today’s high concurrency; with the continuous update and iteration of technology, TPS continues to expand, and blockchain technology has its advantages in many fields.
In the past decade, with the gradual popularization of digital currency, both individuals and organizations, asset allocation has become more and more formal, and traditional institutions have provided many services in digital assets.
From the perspective of policy, major economies in the world have strengthened relevant research in the policy of digital currency blockchain, central banks of all countries have actively tried to solve the legal currency problem with blockchain technology, and blockchain supervision and legislation have gradually improved. For example, Japan has issued relevant laws and regulations compared with the relevant exchanges of Tete and blockchain, Hong Kong has put forward the demand for sandbox of blockchain supervision, etc;
Throughout the industry, blockchain supervision is becoming more and more standardized and clear, and the industry is also gradually moving towards compliance. With the growing maturity of blockchain technology, people gradually start to recognize digital currency, so there will be storage for money, and digital currency is no exception. Under the blockchain technology, a wallet suitable for digital currency, digital wallet, has been produced.
Digital wallet is the foundation of value Internet, and blockchain wallet is an important bridge connecting blockchain industry. According to the networking status of wallet, it can be divided into hot wallet and cold wallet.
Blockchain solves the trust problem at a large level, and it is very safe. As an important entrance in blockchain ecology, wallet has been widely concerned by all walks of life.
Now blockchain technology is in a high-speed development stage, DAPP landing has become a trend. However, wallet is the most acceptable landing entry in DAPP ecology. Many projects of blockchain start from wallet, access to various DAPP applications, participate in the ecological construction, and open up the whole process.
1、 Initial understanding of “blockchain wallet”
In essence, wallet is just a tool. At present, most wallets establish a user’s separate block space in the network, which is decentralized. For the traditional bank card, it is issued by the central platform of the bank, and for our asset management, if the password is lost, it can be retrieved through the bank. If the bank card is lost and others have no password, they can’t take our assets, but we can make up the new card by freezing the bank. But if the wallet is not, no one can help if the key to open the wallet is lost Let’s get our wallet back.
1. Blockchain Wallet
Block Chain Wallet: it is a key management tool, which only contains the key instead of a certain token. The wallet contains a pair of private keys and public keys. The user uses the private key to trade, which proves that the user has the output right of the trade. The output trade information is stored in the blockchain. When the user uses the wallet, your keystore, Mnemonics and plaintext private keys are all wallets; keystore is the wallet you have added “lock”, while mnemonics and plaintext private keys are completely exposed wallets, without any security to speak of, so when using mnemonics and plaintext private keys, you must pay attention to confidentiality.
2. Some concepts in wallet
Wallet generally includes: public key, private key, mnemonic, keystore and password. In essence, wallet and key are corresponding. A fixed key can directly open the wallet belonging to itself on the network. However, in order to avoid information leakage in the transmission process, cryptologists also use asymmetric encryption technology to invent public key and private key. Public key is mainly used for transmission and private key is used for decryption , the simple explanation is that the public key is our bank card, and the private key is the bank card password.
Private key = keystore + password. The private key is composed of 56 numbers and case sensitive letters. In order to facilitate asset transaction, we usually use simple password plus keystore to easily transfer our digital assets.
Mnemonics, the encrypted private key, were invented for the convenience of exporting keystore.
3. Type of wallet
(1) Hot Wallet
That is, the private key storage location that can be accessed by the network. For example, online wallet websites, wallets stored in exchanges, mobile app wallets, etc. are all hot wallets. In general, hot wallets are easier to use.
(2) Cold Wallet
Cold wallet is the wallet that we usually say can work normally when offline or disconnected. The storage location of private key cannot be accessed by the network. Such as hardware wallet, paper wallet, etc. A cold wallet is safer than a hot one.
(3)on-chain
That is, it occurs on the chain and sends digital currency to a wallet address. The transaction is broadcast, confirmed and packed into the block in the whole network. It is called an on chain transaction; the on Chain Wallet needs to keep its private key.
(4)off-chain
Usually, I have no private key when trading through the exchange. The private key is hosted by the exchange.
(5) All node Wallet
In addition to the private key, the all node wallet also stores the data of all blocks, the most famous is bitcoin core.
(6) Centralized Wallet
As the name implies, it is the wallet of a transaction through a platform or banking institution, such as the safe provided by oklink.
(7) Light purse
A decentralized wallet that stores only its own data.
2、 Technology application in “blockchain wallet”
We often say that the centralized blockchain digital currency wallet is actually a blockchain software. Your digital currency doesn’t exist in the wallet company or your own mobile device, but in the address of the blockchain network. Wallet just shows you all kinds of codes of blockchain through network server. In fact, it establishes a transaction channel for you to send all kinds of operation instructions to blockchain. So this kind of wallet doesn’t need a centralized platform like the bank, and it doesn’t need to find the bank to freeze the wallet if it’s lost. The loss of the private key will mean that your assets can no longer be opened. From this point of view, wallet security is essentially directly related to your private key.
1. Principles of wallet application cryptography
The generation of digital wallet can be simply divided into three steps:
Create a random private key (64 bit hex characters / 256 bits / 32 bytes);
The public key (128 bit hexadecimal characters / 512 bits / 64 bytes) is derived from the private key;
Export the address (40 hexadecimal characters / 160 bits / 20 bytes) from the public key.
Seemingly simple steps imply too many techniques in Cryptography: asymmetric encryption, random number generator, hash function, etc.
Asymmetric encryption
Asymmetric encryption algorithm was proposed in 1976. It divides the general key into encryption key and decryption key, which are commonly called public key and private key. The public key and private key correspond one by one, and the ciphertext encrypted by the public key can only be decrypted by the corresponding private key.
(1) Random number generator
Random number is the result of random experiment. In blockchain wallet, random number is closely related to security, so it is used to generate private key. Therefore, random numbers must have the following characteristics:
Randomness: there is no statistical deviation, completely disordered sequence;
Unpredictability: it is impossible to infer the next occurrence from the past sequence;
Non repeatability: when a sequence is saved, the same sequence cannot be repeated.
(2) Hash function
Hash function is also called hash function. It has an input and output. The input is called message and the output is called hash value. A single hash function can change an input string of any length into a fixed length output, that is, the hash value can be calculated according to the content of the message, and the hash value can be used to check the integrity of the message.
2. Intelligent combination in blockchain Wallet
(1) Private key
It is usually randomly generated, which is a huge random integer;
(2) Public key
When someone transfers money to you, in addition to the private key that can’t be told, a string of characters converted from the private key through hash encryption technology is called the public key.
(3) Mnemonic words
Generally, mnemonics are composed of some words. As long as you remember these words and input them in the wallet in order, you can open the wallet.
(4)Keystore
Some wallets will use the private key to make a keystore for users to export and save. This keystore is a file after the private key is encrypted. You need to set your own password to open the file. One advantage of this is that even if the file is lost or stolen, as long as the password you set is long enough and random, the private key will not be disclosed in a short time, and we can have enough time to transfer our assets to other addresses.
3. Unidirectional and irreversible characteristics of wallet
The wallet generates the private key, which can be calculated from the private key through the elliptic curve algorithm.
It’s hard to imagine the asset form and payment scenario after digitalization in the future, but the digital assets under the blockchain have been gradually trending. With the improvement of blockchain technology, digital assets will be more convenient in various application scenarios. At that time, people need digital wallet to participate in the use of digital assets in the digital era. Digital asset wallet will become one of the important infrastructure in the future.
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