Common Terms

Words are Hard

This is a list of terms you might encounter when using the Kaikas interface.

Wallet

  • The interface / client / wrapper / holder that you use to manage your account(s).

Account

  • A public & private key pair that "holds" your funds.

  • Your funds are actually stored on the blockchain, not in the wallet or account.

Address

  • You use this to send funds to an account.

  • Often referred to as the "public key" in Ethereum. However, in Klaytn, the address is not always derived from the public key.

  • A string made up of 0x + 40 hexadecimal characters.

  • In Klaytn, the address begins with 0x.

  • Example: 0x06A85356DCb5b307096726FB86A78c59D38e08ee

Public Key

  • In cryptography, you have a key-pair: the public and private key.

  • You can derive a public key from a private key, but cannot derive a private key

    from a public key.

  • The address "acts" like the public key, but it's not actually

    the public key.

  • The public key (128 hex characters) is derived from the private key.

    You then take the "SHA3" (Keccak-256) hash of the public key (64 characters), and

    take the last 40 characters. Finally, prefix it with 0x. This will give you

    the 42-character address.

  • (Advanced) In Klaytn, you can use decoupled key pairs from addresses. For more

    information refer to Accounts.

Private Key

  • You use this to send funds from an account.

  • The secret half of your Address / public key.

  • A string of 64 hexadecimal characters.

  • If you hand-type a private key differently today than yesterday, you will access

    a different wallet. Never hand type your private key.

  • This is the string you need to send transactions from your account. Without it

    you cannot access your funds. Although, you don't need to save this raw, unencrypted

    private key in this format. You can use the fancy versions of it (e.g. the Keystore

    File/ Mnemonic Phrase).

  • Klaytn wallet key format is provided to easily handle a private key along with

    the corresponding address. Please refer to Klaytn Wallet Key Format

  • (Advanced) In Klaytn, you can use multiple key pairs and keys that have

    different roles. Please refer to Multiple Key Pairs and Role-Based Keys.

Keystore File

  • Encrypted version of your private key in JSON format

  • A fancy version of your private key that is protected by a password of your choosing.

  • When combined with the password, it has the private key.

  • Safer than a private key because you need the password.

  • Example

Mnemonic Phrase / Seed Phrase / Seed Words

  • Another fancy version of your private key, that is actually used to derive

    multiple private keys.

  • A (typically) 12 or 24 word phrase that allows you to access infinite number

    of accounts.

  • Originates from BIP 39 Spec.

  • The accounts you can access with this phrase are determined by the "path".

  • Example: brain surround have swap horror body response double fire dumb bring hazard

Seed

  • The input given to derive a private key. This should always be generated in a

    truly random way, not something you make up with your measly human brain.

  • If you chose the seed, it is known as a brain wallet

Brain Wallet

  • An account generated from a seed or password or passphrase of your choosing.

  • Humans are not capable of generating enough entropy and therefore the wallets

    derived from these phrases are insecure.

  • Brain wallets can be brute forced by super fast computers.

  • Brain wallet are insecure.

  • Don't use brain wallets.

Entropy

  • Also known as "randomness".

  • The more random something is, the more entropy it has, and the more secure it is.

Derive / Derivation

  • To derive something is to obtain it from an original source.

  • For example, if we were to derive a Keystore from a private key and a password,

    this means that the Keystore is made from these two sources.

  • The Keystore is a product of the two, thus it is derived from them.

Encryption

  • Encryption is the act of taking a string of letters/numbers, like your private

    key, and turning them into another string of letters/numbers through a method

    of private translation.

  • There are various different encryption methods.

  • Encryption offers protection against those trying to steal your information!

Encrypted vs Unencrypted Keys

  • An unencrypted private key is 64 characters long, and it is used to unlock or

    restore wallets.

  • An encrypted key is also 64 letters long and is a regular private key that has

    gone through the process of encryption, as defined above.

  • For example, if the world ‘Apple’ was your shortened private key, then it was

    encrypted three letters down the alphabet, your new shortened encrypted key

    would be ‘Dssoh’. Since you know the way to encrypt this key, you could derive

    the original private key from it by reversing the method of encryption.

  • Usually encrypted private keys are kept within the extension or device they are

    encrypted by, and they remain out of sight from the user. This is meant to add

    another layer of security to keep a user’s wallet information safe.

Decentralize / Decentralization

  • The process of transferring authority of a single entity (ex. Government or

    large corporation) to multiple smaller entities.

Trustless

  • Blockchain is trustless in a way that distributed trustless parties can make

    a consensus. Klaytn blockchain ensures that rules and agreements between all

    parties are executed when all conditions are met. Since everyone has a copy

    of the ledger of all transactions ever executed, there is no need for a trusted

    third-party. You can verify the transactions yourself.

Smart Contracts

  • A piece of code (or program) that is stored on the blockchain network.

    Conditions of the contract are predefined by the users, if all conditions are met

    certain actions are executed by the contract (program).

Blockchain

  • A decentralized publicly accessible ledger.

BApp

  • Blockchain application.