With the frequent launch of Binance Alpha activities, the use of Binance Web3 Wallet has become increasingly important. The decentralized nature of encrypted wallets means that all data is stored locally, and asset security is entirely the user's responsibility, akin to storing cash at home without third-party custody. Therefore, correctly understanding and backing up the core information of the wallet—address, password, mnemonic phrase, private key, Keystore—is crucial; otherwise, it may lead to permanent asset loss.
This article will detail the definitions, functions, backup methods, and usage scenarios of these five key terms, using bank account analogies to aid understanding, and provide a practical wallet backup and usage tutorial.
1. Core concepts and bank account analogy
The five core terms of the encrypted wallet can be likened to the components of a bank account, helping users to understand quickly:
Key points:
In a decentralized wallet, no third party stores your information; losing key information (such as mnemonic phrase, private key) will result in the inability to recover assets.
As long as one of the mnemonic phrase, private key, or Keystore + password is kept intact, the wallet can be restored.
It is recommended to prioritize backing up the mnemonic phrase because it is simple, secure, and widely applicable.
2. Detailed analysis: Five core terms
1. Address
Analogy: Bank card number
Definition: For EVM, its wallet address is a 42-character string starting with 0x, generated from the public key through algorithms, unique and unmodifiable.
Generation:
An address is automatically generated after creating a wallet.
Usage:
Receive assets: Provide the address to others for receiving transfers.
Send assets: As proof of transfer, ensure the incoming address is correct.
Note:
Before transferring to the trading platform, be sure to confirm the address provided by the platform to avoid asset loss.
Address loss can be recovered through the private key, mnemonic phrase, or Keystore + password.
2. Password
Analogy: Bank card password
Definition: The password set when creating the wallet, usually requiring at least 8 characters, recommended to be complex to enhance security. Setting and modifying:
Set the initial password when creating the wallet.
Two methods to change the password:
Direct modification: Set a new password after entering the old password.
Resetting the password: Import the wallet using the mnemonic phrase or private key, set a new password (no need for the old password).
Multi-device independence: The same wallet can have different passwords set on different devices, without mutual influence. For example, set password X on phone A and import the wallet on phone B to set password Y; password X on A remains valid.
Usage:
Transfer authorization: Enter the password as proof of payment during transfers.
Unlock Keystore: When importing the wallet using Keystore, you need to enter the password used during backup.
Note:
If the password is forgotten, it can be reset through the mnemonic phrase or private key.
If the password is forgotten and there is no backup of the mnemonic phrase/private key, transfers cannot be made, and wallet control will be lost.
3. Private key
Analogy: Bank card number + Bank card password
Definition: The private key is a string of 64 hexadecimal characters, derived from the mnemonic phrase through algorithms (BIP-32/BIP-44), unique and unmodifiable.
Example:
b4b3c....................................................................................8b5e3g5
Export:
After creating the wallet, enter the password to export the private key.
If the wallet is not deleted and the password is not forgotten, the private key can be exported at any time.
Usage:
Import wallet: Enter the private key and set a new password (no need for the old password) to control the wallet and transfer assets.
Specific scenarios: Some DApps or tools may require direct input of the private key.
Features:
One-way derivation: The mnemonic phrase can generate a private key, but the private key cannot reverse-derive the mnemonic phrase.
Backup difficulty: 64-bit characters are irregular; manual copying is prone to errors, leading to high error rates during recovery.
Note:
The private key can be recovered through the mnemonic phrase or Keystore + password.
It is not recommended to prioritize backing up the private key due to its complexity and less comprehensive functionality compared to the mnemonic phrase.
4. Mnemonic phrase
Analogy: Bank card number + Bank card password (equivalent to private key)
Definition: A mnemonic phrase is a group of 12, 15, 18, or 24 words (usually in English, some support Chinese), derived from the BIP-39 protocol's 2048-word library, unique and unmodifiable.
Generation principle:
Generate a 128-bit random number (entropy).
Calculate the checksum using the SHA-256 algorithm, take the first 4 bits and concatenate them to the entropy to form a 132-bit binary number.
Split into 12 parts of 11 bits each, each part corresponding to a word in the 2048-word library, generating 12 mnemonic phrases.
The 2048-word library (2^11) balances security and ease of use, avoiding overly complex or similar words.
Backup:
After creating the wallet, the system prompts to back up the mnemonic phrase; after entering the password, 12 words will be displayed.
Displayed only once; after backing up, it will not be shown again, requiring manual recording.
Usage:
Recover wallet: Enter the mnemonic phrase and set a new password (no need for the old password) to control the wallet and transfer assets.
Functionally equivalent to the private key: The mnemonic phrase is an easily readable form of the private key, with stronger compatibility.
Features:
Easy to read and remember: The word form is convenient for manual copying and verification, reducing the error rate.
Backup only once: Must be properly saved; once lost, it cannot be viewed again in the wallet.
Note:
If the mnemonic phrase is lost, it can be re-backed up through the private key or Keystore + password.
The mnemonic phrase is the highest authority of the wallet; its leakage equals asset exposure.
5. Keystore
Analogy: Keystore + password = Bank card number + Bank card password; Keystore alone is meaningless
Definition: Keystore is a JSON formatted string that contains the encrypted private key and decryption parameters, which must be used with a password.
Example:
Backup:
Select to back up Keystore in the wallet, generating a JSON string after entering the password.
If the wallet is not deleted and the password is not forgotten, the Keystore can be re-backed up at any time.
Usage:
Import wallet: Enter the Keystore and the password used during backup (not the new password) to restore the wallet.
Encrypted storage: Keystore is an encrypted form of the private key, with high security.
Features:
Dependency on password: Keystore must match the password used during backup; if the password is changed, the Keystore becomes invalid.
Complex operation: JSON format is not suitable for manual copying and must be stored as a file, making management difficult.
Note:
If the Keystore is lost, it can be re-backed up through the mnemonic phrase or private key.
Forgetting the password causes the Keystore to become unusable.
3. Backup and recovery scenario analysis
Below are common situations of information loss and solutions, highlighting the importance of backup:
Conclusion:
As long as you keep any one of "mnemonic phrase", "private key", or "Keystore + password", the wallet can be restored. The mnemonic phrase is the best backup option because it is easy to use and comprehensive.
4. Backup and security recommendations
1. Prioritize backing up the mnemonic phrase
Reason: The mnemonic phrase is simple to remember, highly compatible, can restore private keys and addresses, and is suitable for long-term storage.
Backup methods:
Manual recording: Write down the 12 words on paper and store them in a safe place (like a safe).
Sharded storage (for advanced users): Split the mnemonic phrase into 2-3 parts, stored in different locations, all parts must be combined to restore.
Metal backup: Use a metal plate to engrave the mnemonic phrase, moisture-proof and fire-proof, suitable for long-term storage.
Verification: After writing down, enter the mnemonic phrase to verify correctness, ensuring there are no errors.
2. Private key and Keystore backup (second choice)
Private key:
Manually write down the 64-bit characters in segments (e.g., every 16 bits), verifying multiple times.
Store in offline devices or paper media, avoiding electronic storage.
Keystore:
Save as an encrypted file, stored on a USB drive or offline device.
Also record the password used during backup, stored separately.
3. Security considerations
Avoid network transmission: Do not save the mnemonic phrase, private key, or Keystore through WeChat, email, cloud drives, screenshots, etc., as they can be easily stolen by hackers.
Physical security: Paper backups should be stored in a place only you can access to prevent loss or unauthorized access.
Regular checks: Confirm that the backup medium (paper, metal plate) is clear and readable to avoid smudged or damaged writing.
Multiple backups: Keep multiple copies of the mnemonic phrase in different locations to reduce single-point risk.
Beware of phishing: Do not click unknown links and do not input wallet information on untrusted websites.
4. Recovery process
Binance Web3 wallet recovery example:
Open the Binance Web3 wallet and click "wallet" - "import wallet".
Choose import method:
Mnemonic phrase: Enter 12 words, set a new password.
Private key: Enter 64-bit characters, set a new password.
After successful import, check if the address and assets are correct.
5. Advantages and risks of decentralized wallets
Advantages
Complete control: Assets belong only to you, with no reliance on third parties, ensuring high security.
Privacy protection: Decentralized wallets do not store user information, reducing the risk of data leakage.
Globally applicable: Supports mainstream blockchains (such as BNB Chain), managing various tokens.
Risks
Self-responsibility: No one can help you recover lost information; wallet companies also have no rights to access your assets.
Security threats: Leakage of the mnemonic phrase or private key can lead to asset theft, requiring high vigilance.
Analogy to banks:
Traditional banks (centralized): If a card is lost or password forgotten, it can be recovered through the bank.
Encrypted wallets (decentralized): Information loss cannot be recovered, but assets are fully controlled by you.
6. Summary and action suggestions
Encrypted wallets are the core tools for managing blockchain assets, and correct backup and usage are key to protecting assets. Below is a comparison and recommendations for the three.
Action suggestions:
Immediately back up the mnemonic phrase: manually write down the 12 words, store them in a safe place, and verify accuracy.
Avoid electronic storage: Do not use WeChat, email, cloud drives, or screenshots to save sensitive information.
Regularly check backups: Ensure the backup medium is readable and update storage methods (e.g., metal plates).
Learn wallet operations: Familiarize yourself with the wallet's import and transfer functions.
Select a trustworthy wallet: Binance Web3 Wallet is the preferred choice, secure and reliable.
By correctly backing up the mnemonic phrase and following security protocols, you will become the true guardian of your assets and navigate the blockchain world with ease!
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