Killer feature 1. One single password to all your cryptocurrencies!
What for are you working on another multicrypto wallet?
Nice question, isn't it?
We decided to start a short cycle of articles dedicated to Multy's Killer features, it will be an elegant answer to the question above.
Problem
The main shortcoming of most existing cryptocurrency wallets is the following: all addresses within them are randomly generated, each address has a corresponding key (several keys sometimes). In order to guarantee that an operation is completed you need to back it up. What is more, you have to store somehow and somewhere not only the key file, but also complex passwords to it. Well, quite a problem.
Solution
Bitcoin Improvements Proposals 32, 39, 44 have been created to guarantee anonymity and security of crypto transactions. These BIPs compose a technology known as Hierarchical Deterministic Wallet. Multy's development will be based on this technology.
BIP 32 describes an idea of deterministic wallets: a system doesn't suppose any unexpected and undetermined things to happen within it. BIP 39 generates a so called seed-phrase - several randomly organized words which are a single key to all your addresses at one time. BIP 44 determines the hierarchy of the addresses and their interconnections in a tree-form.
The main purpose of the technology is as follows: if you know a seed-phrase you can get access to ALL your wallets. It means that you don't have to try to remember those 100500 keys. And it concerns all altcoins, not only Bitcoin.
Advantages of the technology
- high-level anonymity: uniting seed-phrase/Master Key with hash-functions means creating interconnected addresses, their connections are known and shown only to you;
- if you lose control over you HD wallet it still lets you regain access to all of your addresses using only one seed-phrase;
- it's much easier to remember one phrase instead of numerous keys to each address;
- all your addresses are backed up all together - it keeps your assets safe and unchanged;
- single seed-phrase may be used to numerous cryptocurrencies.
