MyNearWallet to Remove Outdated Recovery Methods
How do Crypto Wallets Work?
One crucial thing you always need to remember is that your crypto wallet does not store your coins. Cryptocurrency exists on the blockchain. So, crypto wallets only enable you to access it. Crypto wallets function like credit cards and let you use your holdings. To ensure that you always have access to your crypto, wallets have security and recovery mechanisms.
Public Key vs Private Key
Crypto wallets work by controlling a private key. A private key is a line of numbers and letters that proves that you own your cryptocurrency and can use it. For example, you need a private key to send, stake, and burn your cryptocurrency.
A private key is similar to a password for your credit card.
Private keys work together with public keys. A public key allows users to receive cryptocurrency from others.
A public key is similar to a bank card number.
Private Key vs Seed Phrase
Once you lose your private key, you cannot access your cryptocurrency. So, wallets utilize recovery phrases to protect private keys and let users recover them when such a need arises.
A recovery phrase is also called a seed phrase. These phrases consist of random words (12 to 24). This unique sequence can help you recover your private key(s) should you lose your wallet. You will also need it to import an account into a new crypto wallet.
MyNearWallet & Security Methods
Near Wallet is a non-custodial wallet. This means that it does not store users’ private keys on its centralized servers. So, users are solely responsible for storing their private keys.
MyNearWallet uses several security methods. The primary solution offered by MyNearWallet is the seed phrase. Although the seed phrase method is the most secure, it can be difficult for newcomers to the NEAR Protocol to use it.
This is why the legacy Near Wallet at wallet.near.org used to have email and SMS recovery methods. They are simpler than the seed phrase solution but have certain shortcomings.
Email Recovery vulnerabilities
In the case of the email recovery method, you receive a one-time recovery link to your email address. Still, the email method has some issues:
- Users may lose their recovery link email.
- Users’ emails containing recovery links can be hacked.
SMS recovery vulnerabilities
The SMS recovery method is similar to the email one. You can receive a one-time SMS message with your recovery link. It is also susceptible to mishaps:
- Mobile network operators may process a recovery SMS text incorrectly.
- Users may lose their phones containing the recovery text.
MyNearWallet Security Update
Since the email and SMS recovery methods have issues, the MyNearWallet team decided to remove these options. Instead, we are working on a brand-new solution. The new method will allow users with any level of expertise to recover their private keys safely and seamlessly.
Until the solution is finally available, we recommend you use the classic seed phrase method.
The new security protocol will be optional to enable. So, you will be able to decide whether to use it or not — all completely up to you!
Stay tuned for more information, and subscribe to our blog, so you don’t miss future updates!
Want to keep reading?
Check out our article “What is a seed phrase” to learn more!
