A Web3 wallet is a digital asset management tool based on blockchain technology. It helps users securely store, use, and control various on-chain assets, including cryptocurrencies, NFTs, and other digital tokens, serving as the gateway to the Web3 world.
Before diving into the Web3 ecosystem, there are three essential concepts you must thoroughly understand: Public Keys, Private Keys, and Mnemonic Phrases.
1. Public Key
A public key is your wallet address, which can be thought of as a bank account number. It is generated from your private key and is primarily used for receiving funds. Others can only see your assets or send you transactions; they cannot obtain your private key through your public key.
2. Private Key
The private key is the most critical information in your wallet, similar to a bank card PIN. It is used to sign transactions, proving your control over the assets under that wallet address.
Security Tips
- If your private key is leaked, anyone can control your assets.
- If your private key is lost, your assets will be unrecoverable forever.
Private keys must be kept strictly confidential and never shared with anyone.
3. Mnemonic Phrase
A mnemonic phrase is a sequence of 12 or 24 English words. It is essentially another representation of your private key, designed to be easier for us to record and save.
Private keys are usually long strings of random numbers and letters, which are nearly impossible for us to remember or transcribe manually without errors. To solve this, wallets convert them into an ordered set of English words.
Summary
The Public Key is for public display and receiving assets, the Private Key determines ultimate control over those assets, and the Mnemonic Phrase is a human-readable form of the private key.
Unlike traditional internet accounts, Web3 wallets have no centralized institution to help you recover passwords. The security of your assets depends entirely on how you safeguard your private keys and mnemonics.