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LiveWallet - Part 1

001-generate-seed-and-extended-key.livemd

LiveWallet - Part 1

Mix.install(
  [
    # to create bitcoinSV transactions, including keys and scripts
    {:bsv, "~> 2.1"},
    # making http requests
    {:httpoison, "~> 1.8"},
    # to work with JSON
    {:jason, "~> 1.3"},
    # to work with Handcash.io's API
    {:handkit, "~> 0.2.0"},
    # to work with bitcoinSV miners
    {:manic, "~> 0.1.0"},
    # to add functionality to Livebook
    {:kino, "~> 0.12.2"}
  ],
  config: [
    # bsv: [network: :test]
    bsv: [network: :main]
  ]
)

Display which network we’re using

Whether we use the main or test network is up to us, and we configure that in the config section of the Setup above.

BSV.network()

Get started with seed words

When using a blockchain, a user signs transactions using keys typically managed by Wallet software.

We can create a Wallet from a Mnemonic phrase, which is a set of words, often referred to as “12 words”.

Generate these words randomly, and ensure the words are written down clearly and accurately.

Your mnemonic or seed phrase is necessary to restore a wallet.

Run this code to generate 12 - 24 words, based on what you decide.

# 12 words
mnemonic = BSV.Mnemonic.new(128)
# mnemonic = BSV.Mnemonic.new(160) # 15 words
# mnemonic = BSV.Mnemonic.new(192) # 18 words
# mnemonic = BSV.Mnemonic.new(224) # 21 words
# mnemonic = BSV.Mnemonic.new(256) # 24 words
# enter the mnemonic you generate here, to save it going forward.
# this is how you deterministically create a new wallet

# BE SURE TO WRITE IT DOWN AND KEEP IT SAFE!
# mnemonic = "NOTE YOUR MNEMONIC HERE"

Create a Seed

The random words from the mnemonic seed phrase can be used to generate a Seed. This seed is a crucial part of deterministic wallet generation and is used to generate all the cryptographic keys associated with a wallet.

seed = BSV.Mnemonic.to_seed(mnemonic)

Here, we create an Extended Key from a seed. This Extended Key can be used to create other keys, and so on.

> In bitcoin, an important security consideration involves whether or not to re-use addresses. For additional privacy, use brand new keys for each tranaction. Fortunately, its easy for computers to generate thousands, millions of keys, cheap and easily.

extkey = BSV.ExtKey.from_seed!(seed)
extkey |> BSV.ExtKey.to_string()

The exported Extended Key should look something like xprv...

This exported key can be used to recreate the Extended Key, so, it should be also kept secure.

Export the Wallet as a WIF

Here, we export the PrivKey to a WIF. WIF stands for “Wallet Import Format”, and it is a common way to import/export basic wallet information.

wif = extkey.privkey |> BSV.PrivKey.to_wif()
# Enter the generated WIF here
# wif = "Enter the WIF you generate here"

At this point, you have created a crypto wallet.

  • randomly generated a seed phrase
  • converted the seed phrase into a Seed
  • exported a single key as a WIF (Wallet Interchange Format)

Going forward, you will need your seed phrase, so be sure to write it down.

Did you write down your seed phrase clearly and permanently?

This test wallet is small beans, but this wallet cannot be recovered without the seed phrase, and that’s an important lesson to learn that is specific to crypto(graphy).

Kino.Input.checkbox("I have written down my seed phrase")
Kino.Input.checkbox("I understand that I can lose access to my bitcoins if I lose my seed phrase.")
)

> This is the end of Part 1. Read Part 2 - Generating keys.