How to create a private key for a crypto wallet with and without a seed phrase, Tangem Wallet
Usually, when you create a crypto wallet a seed phrase is generated. You’ll need to remember it or write it down so that you can restore access to your assets at a later time. With Tangem Wallet, there is no seed phrase. How does this work, and why do we think seed phrases aren’t very secure?
First of all, you need to know what a seed phrase is. The simplest possible explanation is as follows: it’s a mnemonic phrase that encodes a user’s private and public keys. Thanks to computational magic, this random set of words will always generate the same set of keys.
Crypto trees
First of all, it’s worth looking at how crypto wallets themselves work. The vast majority of them are hierarchical deterministic (HD) wallets.
A crypto wallet is a "tree" of private and public keys, which allows you to access your cryptocurrency on different blockchains and manage it. This tree grows through entropy, or a random number generated by a random number generator. The root system is the seed, the trunk is the pair of extended keys (private and public), and the branches are a huge set of key pairs and addresses of coins on blockchains.
Each child key can generate its own keys, which can then generate their own keys and so on, resulting in a hierarchy of sorts. This is why wallets are described as hierarchical.
They are also "deterministic", which is to say they produce a single result that can be determined in advance, because the same key tree will always be generated from the same mnemonic phrase in the same way.
Private and public keys for HD wallets with a seed phrase
The mnemonic phrase, or code, is a set of words generated from a random number, which in turn is generated by a random number generator. It is this code, and not the private key itself, which is used as a backup in most cases. The mnemonic phrase, which is usually called a seed phrase, acts as a backup copy of the key.
How it works
So you’re creating a crypto wallet: what happens and how is the mnemonic phrase created?
1. First of all, the random number generator creates entropy.
Entropy is a very large random number which has never been generated by anybody and will never be generated by anybody again.
2. The entropy that has been created is encrypted as a string of words from a special dictionary with the help of mathematical algorithms. The mnemonic is the result.
3. The mnemonic phrase is converted to a seed. Don’t confuse the two: the seed is actually a modified version of the mnemonic phrase. A hash function is used to convert one into the other.
A hash function is a mathematical algorithm that compresses a data set of any size into a fixed size data array. The incoming data is called a message, and the outgoing data is called a hash sum or simply a hash. One of the key features of a hash function is that it is unidirectional, which means that it is impossible to recover the original data from its result (the hash). It’s also important to understand that if the incoming data doesn’t change, the hash sum will always be the same.
4. A master key (extended master key) is calculated from the seed. This is the first key you get when converting a seed phrase. This transformation is also carried out using a hash function.
5. An extended private key (Xprv) is calculated from the master key.
6. The extended private key then generates an extended public key (Xpub).You have created a master key pair, which can then be used to create a huge number of child keychains for different blockchains. You can now use your wallet to store, send, receive and exchange coins and tokens, and much more.
If something happens to your crypto wallet, you will need the mnemonic phrase to restore the entire key hierarchy and regain full access to all your coins and tokens. You should therefore write it down on a piece of paper and store it in a safe place.
What’s the downside?
The mnemonic phrase allows you to easily restore all your cryptocurrency in case you lose your wallet, it’s stolen or it breaks. It can also be used to steal all of your crypto assets if it falls into the hands of bad actors.T
hink about it for a moment – crypto wallet developers are creating innovative devices, competing to be the most secure, and trying to make them as well protected as possible, both in terms of programming and physical build. Your cryptocurrency keys are generated by highly complex mathematical algorithms, and the data is encrypted multiple times with the help of cryptography to provide the highest possible level of security for your assets.
But the key to your cryptocurrency is written on a piece of paper. One or two dozen words are just lying there on an unprotected piece of paper, and this is the master key to all your assets. All you’d need to do to compromise the key is take a photo or rewrite the words (or even simply remember them), and you wouldn’t even realize it. What’s more, a piece of paper could easily be lost or damaged.
You could of course encrypt the phrase, split it up into sections that can be stored in different places, or rent a deposit box at a bank where you can store your seed phrase. But how many people do this, especially when it comes to newbies in the crypto space?
An objective and reasonable conclusion can be drawn from all of this: an unprotected seed phrase is a significant flaw for existing crypto products and a serious hole in the security of modern cryptocurrency wallets.
Private and public keys for Tangem Wallet without a seed phrase: How it works
A Tangem Wallet is a hierarchical deterministic wallet just like its counterparts, except for the fact that it excludes their key vulnerability: storing the master key to all its crypto assets in the unencrypted, unprotected format of the user’s mnemonic phrase written on a piece of paper.
The same algorithm is used as with other wallets when generating the master key, the pair of extended keys (public and private) and the remaining keychains and addresses, but without creating the mnemonic phrase. The seed is generated directly from entropy.
The key is generated by the card chip and this is where it’s stored. Nobody is able to access it, regardless of whether they steal the card, work for Tangem, or even own the card. The backup isn’t provided by a mnemonic phrase, but the other cards in the Tangem Wallet set (one or two cards depending on the set you choose). When syncing cards using a smartphone to create a backup, an encrypted channel is established in order to transfer the keys from one card to the other.
fter completing the backup of keys, you will have two or three identical copies of the wallet. The cards have the same keys and password protection. We recommend that you store them in several safe places, rather than keeping all of them in one location. If something happens to one of the cards, you can take the second one and use it. If you lose the second one, you are in a dangerous position as you don’t have a backup, in which case you should buy a new Tangem Wallet set and transfer your crypto assets to it.
Wondering how to use your wallet without a seed phrase? It’s simple:
- when you want to buy cryptocurrency, set up the required transaction in the mobile application, scan the card with your smartphone and enter the password;
- your smartphone will transfer the data to the chip using NFC;
- the chip checks the password, signs the transaction with the private key and returns the digital signature to the application;
- the application sends the signed transaction to the blockchain.
But what if…
…Tangem folds, the servers are shut down, or the application disappears from Google Play and the App Store? The answer is simple: nothing. You will be able to continue using Tangem Wallet with no issues. To find out more, read our article on "How the Tangem Wallet will work without Tangem".
Tangem is a high-tech company in the blockchain sector was founded in 2017, headquartered in Zug, Switzerland, with branches in North America, Eastern Europe, and APAC.
Tangem started with the idea of bringing cryptocurrencies to the masses using a unique combination of a smartcard-based hardware wallet and mobile applications.
Company owns and promotes the technology of hardware cold-wallet for crypto assets with secure and simple UX in 170 countries today.
Tangem Wallet lets you store your crypto assets secure and easily accessible while keeping private keys contained in your card.
Tangem solutions offer multi-support of a growing number of thousands of tokens by a single wallet.
What is Tangem?
Tangem. Simply Secure
Tangem crypto wallet is a card-shaped device with an embedded microchip. The card has to be activated NFC.
Ultra secure backup
You can connect up to three cards to one wallet, so you'll always have a way to use your wallet if your main card is lost, stolen, or damaged.
Choose your multicurrency hardware wallet to manage various crypto with access to DeFi, NFT, DeEx and more – all in one card.
Choose your pack:
Pack of 3 Cards - $ 69.90 (Safer)
Pack of 2 Cards - $54.90 (Cheaper)
Thousands of currencies
A hardware wallet for your Bitcoin, Ethereum and many more currencies simultaneously - all in one card.
DeFi compatible
Exchange, buy NFT’s, make loans and deposits in more than 100 different decentralized applications with help of Wallet Connect.
Your phone and your card — nothing more!
No wires or batteries. Just download the Tangem app to your phone and tap the card.
Tangem advantages
How to setup your TANGEM WALLET
Frequently Asked Questions
What is a Tangem Wallet?
Tangem Wallet is the safest hardware wallet in the world. Tangem Wallet keeps your Bitcoin, Ethereum, and more than 1000 additional cryptocurrencies completely safe. The card is the key to your wallet, and using your funds requires taping the card to your phone.
What can I do with Tangem Wallet?
Tangem Wallet allows you to buy and sell cryptocurrencies using Apple Pay, Google Pay and credit cards. Additionally, it has access to hundreds of decentralized services, which allow trading on exchanges, issuing loans, borrowing funds, working with NFTs and much more.
Where are the keys to my wallet kept?
The wallet's keys are generated and stored in the card as the top secret. For any operations with your wallet, you will need one of the cards connected to it.
What happens if I lose the card?
Tangem Wallet allows connecting up to 3 cards to a single wallet. All 3 cards are equal in capabilities and can be used with your wallet. To protect your wallet from unauthorized access, you can also set an access code for your card. If you forget the access code, you can restore it with an additional previously connected card.
How reliable and safe is it?
Tangem Wallet is the most safe and reliable crypto wallet in the world. The chip in your card is a microcomputer. It has been certified by Common Criteria at EAL6+ level — the same level of chip protection used in passports. It is completely safe from dust, water, and hacking attempts. The card reliably performs in temperatures between -25℃ (-13.℉) and +55℃ (131℉), with the chip useful life beyond 25 years of service.
Conclusion
Tangem Wallet is the safest hardware wallet in the world. Tangem Wallet keeps more than 6000 cryptocurrencies simultaneously, and also has access to hundreds of decentralized financial services for buying, selling, exchanging cryptocurrencies, staking and lending. The card is the key to your wallet, and using your funds requires taping the card to your phone. Tangem Wallet is a set of 2 or 3 cards with a backup feature. So when activating a card you can make a backup of the key on the other card(s) which will help you to manage your money even if you lose one of the cards. And by enabling access codes, you will prevent your funds from being transferred by an attacker in case of loss or theft.
Learn more about the best TOP 30 hardware cryptocurrency wallets
You can see this list here.
TOP 29 Hardware Wallets, the Official Online Stores
| 1 |  | Trezor hardware wallet, the official online store |  |
| 2 |  | Ledger hardware wallet, the official online store |  |
| 3 |  | KeepKey hardware wallet, the official online store |  |
| 4 |  | BitBox02 hardware wallet, the official online store |  |
| 5 |  | CoolWallet hardware wallet, the official online store |  |
| 6 |  | ELLIPAL hardware wallet, the official online store |  |
| 7 |  | D'CENT hardware wallet, the official online store. |  |
| 8 |  | SafePal hardware wallet, the official online store |  |
| 9 |  | SecuX hardware wallet, the official online store |  |
| 10 |  | BC Vault hardware wallet, the official online store |  |
| 11 |  | BitLox hardware wallet, the official online store |  |
| 12 |  | Keystone hardware wallet, the official online store |  |
| 13 |  | ProKey hardware wallet, the official online store |  |
| 14 |  | NGRAVE hardware wallet, the official online store |  |
| 15 |  | Keevo hardware wallet, the official online store |  |
| 16 |  | GridPlus hardware wallet, the official online store |  |
| 17 |  | Ballet hardware wallet, the official online store |  |
| 18 |  | OPOLO hardware wallet, the official online store |  |
| 19 |  | Foundation (Passport) hardware wallet, the official online store |  |
| 20 |  | ImKey hardware wallet, the official online store |  |
| 21 |  | Tangem hardware wallet, the official online store |  |
| 22 |  | HashWallet hardware wallet, the official online store |  |
| 23 |  | Material Bitcoin hardware wallet, the official online store |  |
| 24 |  | ShieldFolio hardware wallet, the official online store |  |
| 25 |  | OneKey hardware wallet, the official online store |  |
| 26 |  | Blockstream Jade hardware wallet, the official online store |  |
| 27 |  | Cypherock hardware wallet, the official online store |  |
| 28 |  | Keepser hardware wallet, the official online store |  |
| 29 |  | NEXA hardware wallet, the official online store |  |
TOP 20 Best Metal Cold Storage Seed Phrase Backups, the Official Online Stores
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