What is OKX keyless wallet?

A crypto wallet is a blockchain-based infrastructure that stores users' assets and serves as a gateway to Web3. Despite the rapid growth of the industry, many of us still rely on outdated practices, such as carefully keeping a long list of private keys and seed phrases to protect our assets. Once private keys or seed phrases are lost or compromised, funds stored in the wallets may be stolen or remain inaccessible forever, and this also has limited the widespread adoption and expansion of Web3.

On the other hand, the growth of on-chain ecology and the proliferation of on-chain interactions, private keys or seed phrases leakage has resulted in the theft of hundreds of millions of dollars in crypto assets. Using wallets safely, properly, and rationally has also become challenging.

Based on this, a keyless wallet utilizes multi-party computation (MPC) technology and blockchain signature to address the limitations of traditional crypto wallets by dividing ownership of the private key among multiple parties. It also eliminates the burden of safeguarding private keys or seed phrases for us.

1. What is OKX keyless wallet?

A keyless wallet is a type of wallet that leverages multi-party computation (MPC) technology, a cryptographic security measure that enables multiple parties to jointly compute without revealing any private information or secret data held by each party. In a keyless wallet, by using distributed key generation technology, the private key is split into multiple shares, which are separately generated and stored by different parties. When signing a transaction, multiple parties need to participate in computing jointly to form a complete signature.

OKX keyless wallet is based on MPC technology that converts the original 1 complete private key into 3 separately-generated and separately-stored private key shares. During use, 2 private key shares are required to sign a transaction, without generating the complete private key.

When creating a keyless wallet, the OKX server generates Share 1, while the user device generates Share 2 and Share 3. Share 2 is encrypted and stored on the user's device, and Share 3 is encrypted and backed up to iCloud or Google Drive. Share 1 Share 2 are used for transaction signing, while Share 3 serves as a backup.

Keyless wallets also require users to back up assets, but instead of backing up seed phrases or private keys, they offer a more secure and convenient way to do so. Users simply need to log into a third-party cloud service, back up, and encrypt Share 3 to iCloud or Google Drive. This enables users to conveniently and securely use or restore their wallets at any time and from anywhere. The entire process, from wallet creation to generation, takes only a few seconds, offering a smooth and hassle-free experience without the need for private keys or seed phrases.

2. What are the benefits of using a keyless wallet?

Remove single points of failure, and no need to safeguard private keys

OKX keyless wallet distributes ownership of the private key among multiple parties, reducing the risk of theft or loss of assets. No complete private key is stored on any one device, and each party receives a private key share that does not have the ability to independently control the assets. This means that even if one private key is stolen, others can't access the assets through that single share.

Streamline user experience, lowering the barrier to entry into Web3

Keyless wallets adhere to the principles of Web3 by allowing users to keep their personal assets. They also offer a smooth and easy-to-use experience that doesn't require users to manage private keys or seed phrases, which can be challenging for new users entering the Web3 space.

Lower private keys recovery costs

If a private key share is lost or stolen, the keyless wallet can perform a refresh function to replace the original key shares of each party with new private key shares. This renders the lost or stolen share useless and reduces the cost of private key recovery.

3. How to use a keyless wallet?

1) Download OKX App

Visit the OKX official website, and download the OKX App: https://www.okx.com/download

2) Use OKX Wallet for the first time

[1] Open the OKX App, switch to Wallet, and select I Don't Have a Wallet > Keyless wallet;

[2] Click Enable Face ID to access wallet;

[3] Enter your OKX account and password. If you've already logged in, skip this step, and then click Create;

[4] Click Back up your wallet > Confirm;

[5] Enter your password to complete the backup.

3) Already have a traditional crypto wallet, and want to create a keyless wallet

[1] Open OKX Wallet, click ▼ > Manage > Add wallet;

[2] Select Create New Wallet > OKX Account;

[3] Enter your OKX account and password. If you have already logged in, skip this step, and then click Create;

[5] Click Back up your wallet > Confirm;

[6] Enter your password to complete the backup.

4. How to restore a keyless wallet?

If a wallet is reset, deleted, reinstalled the app, or the device is replaced, we can restore the wallet by scanning the code.

[1] Open the OKX App, switch to Wallet, select I already have a wallet > Keyless wallet;

[2] Enable Face ID to unlock wallet or make transactions;

[3] Enter your OKX account and password. If you have already logged in, skip this step, and then click Scan to restore;

[4] Use the old device to scan the QR code to sync your wallet.

If your old device is unavailable or the private key share on your device is compromised, you can restore your wallet through a cloud backup. To do so, log in to either iCloud or Google Drive to download Share 3 and restore the keyless wallet. Once the restoration is complete, all three private key shares will be refreshed with new ones.

[1] Open the OKX App, switch to Wallet, and select I already have a wallet > Keyless wallet;

[2] Enable Face ID to unlock your wallet or make transactions;

[3] Enter your OKX account and password. If you are already logged in, skip this step, and then click Restore by cloud backup;

[4] Restore from Apple or Google, and verify your cloud backup password;

[5] Complete the restore process.

Please note that after restoring via cloud backup, all private key shares will be refreshed. Your old device's wallet will be invalid and can only be retrieved by scanning or through the cloud.

5. FAQs

1) I am accustomed to using a private key. Is it secure to use a keyless wallet without a private key?

Although it may seem counterintuitive, the keyless wallet operates differently from traditional wallets and does not fully store the private key on a single device. This approach mitigates the risks associated with storing private keys and makes the keyless wallet a secure alternative to traditional wallets.

2) Is it possible to import the OKX keyless wallet to another wallet app that supports keyless wallets?

No. Most keyless wallets are customized and lack a unified industry standard for the MPC algorithm, which is not yet supported by institutional-level security devices. Since you have two private key shares, you can use Share 2 and Share 3 to obtain the complete private key, and this process doesn't require OKX's participation. At this time, the keyless wallet will be converted into a traditional wallet controlled by private key or seed phrases, which can then be imported to other wallets. In order to avoid any liability disputes, your keyless wallet in OKX App will no longer be valid after this process.

3. Will my assets in the keyless wallet be safe if OKX becomes unavailable or if the platform disappears?

Yes. When a keyless wallet is created, private key shares are divided into 3 pieces and stored on the OKX server, user device, and iCloud or Google Drive respectively. By using two of the private key shares when signing the transaction, you can obtain the full signature and use the wallet.

If OKX becomes unavailable or disappears, you can restore your wallet and transfer your assets out by obtaining the complete private key through Share 2 and Share 3. At this point, the keyless wallet will be converted into a traditional wallet controlled by the private key, and the original keyless wallet will no longer be valid.

4. What should I do if the private key share stored on my device is leaked?

If the private key share stored on your device has been compromised, you can recover your wallet by utilizing a cloud backup. Simply log in to iCloud or Google Drive to download Share 3 and initiate the restoration process for your keyless wallet. After restoring with iCloud or Google Drive, all 3 private key shares will be automatically refreshed to generate new ones without affecting your wallet address or assets.

5. Is the use of a keyless wallet considered centralized behavior?

For Web3 natives, relying on servers and mailboxes may seem non-Web3, and centralized, and could even raise concerns about privacy. However, this is not the case with keyless wallets.

Firstly, OKX keyless wallet is a fully decentralized and non-custodial multi-chain wallet. OKX only exists as a service provider and cannot and will not access users' assets. Moreover, even if the platform, which may be perceived as centralized, can be easily replaced. If the platform becomes compromised or is malicious, assets can still be withdrawn using the other two private key shares, ensuring that there is no threat to your assets.

Second, keyless wallets enhance security. There is no need to safeguard the private key, thereby reducing the risk of private key breaches. Even if the private key share on the device is compromised, the wallet can still be restored using private key shares stored on the OKX server and iCloud or Google Drive.

Read the original article at okex

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