How to create a wallet?

Overview

A Vana wallet is the core identity for managing assets, participating in operations, and interacting with decentralized applications on the Vana network. Whether you are a regular user or a network operator, a Vana wallet is essential for storing VANA tokens, conducting transactions, and maintaining security.

Wallet Options

For Basic Use

Vana is EVM-compatible, meaning it supports Ethereum-compatible addresses. You can use wallets that support EVM chains, such as:

• MetaMask
• Rabby
• Trust Wallet

These wallets allow you to send, receive, and store VANA tokens and participate in the Vana ecosystem.

For Network Operators

Network operators, such as DataDAOs, can use the Vana CLI tool to manage their wallets. This tool allows you to create, secure, and manage the coldkeys and hotkeys required for network operations.

Key Concepts

Coldkey

• Definition: A coldkey is your wallet's secure identity for critical transactions. It is encrypted and typically stored offline for maximum security.
• Usage: Coldkeys are used for holding VANA tokens, delegating them, and creating DataDAOs.
• Security: Coldkeys are highly secure, as they are stored encrypted and offline.

Hotkey

• Definition: A hotkey is an operational key tied to a coldkey. It allows you to perform regular tasks, such as signing transactions and running validator nodes.
• Usage: Hotkeys are used for everyday network operations, like registering and running DataDAO nodes or signing transactions.
• Security: Hotkeys are less secure than coldkeys because they are generally stored unencrypted and used frequently for operational tasks.

Key Pairing

Each coldkey and hotkey consists of a public and private key. You can have multiple hotkeys associated with a single coldkey, but each hotkey can only be used for one node within the same DataDAO.

Setting Up a Wallet Using CLI

For network operators or those requiring advanced control over their wallet, the Vana CLI tool can be used to create and manage wallets.

3.1. Creating a Wallet

To create a local wallet using the CLI:

1. Clone the Vana framework repository and follow the setup instructions to install the CLI tool.
2. Run the following command to create a wallet:

vanacli wallet create

3. You will be prompted to enter a wallet name (coldkey) and a hotkey name. You will also set a password for encrypting your wallet. Example:

vanacli wallet create  
Enter wallet name (default): my-wallet  
Enter hotkey name (default): my-hotkey

4. Once the wallet is created, you will receive a mnemonic phrase for both the coldkey and hotkey. Store these mnemonics securely, as they can be used to recover your keys. Example:

The mnemonic to the new coldkey is: <super secret coldkey mnemonic>  
The mnemonic to the new hotkey is: <super secret hotkey mnemonic>  

5. Use the following command to regenerate a key from a mnemonic:

vanacli w regen_coldkey --mnemonic <super secret coldkey mnemonic>  
vanacli w regen_hotkey --mnemonic <super secret hotkey mnemonic>

6. Your local wallets are stored in the directory: ~/.vana/wallets.

EVM Compatibility

Since the Vana network is EVM-compatible, you can use Ethereum-compatible wallets for interacting with the network. The same wallet can be used to generate different encryption keys to secure your data and manage assets across the ecosystem.

Security Considerations

Coldkey Security

• Encrypted: Coldkeys are always encrypted and stored offline, providing the highest level of security for your assets.
• Critical Transactions: Coldkeys are used for delegating VANA tokens, managing DataDAOs, and performing other infrequent but vital actions.

Hotkey Security

• Operational Tasks: Hotkeys are used for signing transactions and running nodes. They are generally less secure since they are stored live for regular operations.
• Delegation: Hotkeys allow validators to accept delegations of VANA tokens from other holders.

Conclusion

Creating a wallet on Vana is simple, whether you're using a standard EVM-compatible wallet for basic operations or the Vana CLI for advanced network operations. By properly managing your coldkeys and hotkeys, you can ensure both security and functionality as you interact with the Vana network.