What is a HD wallet?

Electra Protocol’s native wallets for mobile devices and desktop computers are so-called hierarchical deterministic wallets (HD wallets).

A HD wallet is an encrypted application commonly used to store the private keys for holders of cryptocurrencies. Anyone with a copy of both the private keys and password can control the cryptocurrency in the account. This means: anyone having access to your backup (such as wallet.dat) and the corresponding password, or the mnemonic phrase, will be able to access the wallet.

Be sure to place copies of your wallet.dat backup file (XEP Desktop Wallet) on different devices, such as an USB stick.

One backup file is enough

The XEP Desktop Wallet and the XEP Mobile Wallet are hd wallets. The benefits of HD wallets are:

  • You just need to perform a backup only once when you create the wallet.
  • All transactions happening, even after the creation of the wallet, are associated with the given backup.
  • Even when you create new wallet addresses, they are also included under the original backup including all their transactions.

This means: Once you backed up your wallet, you are save for the future, if you store your backup and your access key to it in a safe location which is not exposed to others.

IMPORTANT: If you import an address generated outside the wallet, a new backup must be done. The reason is that imported addresses are not part of the deterministic tree.