A Keyless Wallet is a specialized type of cryptocurrency wallet that utilizes a technology known as Multi-Party Computation (MPC). This advanced cryptographic method involves multiple parties collaboratively performing computations without any single party ever seeing the complete confidential information of another. It's a paradigm shift in digital asset security.
Unlike traditional wallets, which rely on a single private key stored in one location, Keyless Wallets distribute the process of generating and storing the private key across several independent parties. This architecture effectively eliminates the risks associated with a single point of failure. This collaborative approach not only significantly enhances security but also builds resilience against a wide array of potential threats.
Core Features of a Keyless Wallet
Keyless Wallets currently support several powerful functions designed for both security and convenience:
- Secure Asset Storage. Ideal for protecting long-term holdings, this solution allows you to safely send and receive tokens without the vulnerabilities of a single private key.
- Seamless DApp Interaction. Easily connect and interact with various decentralized applications (DApps) without ever risking your key being exposed or leaked.
- Effortless Daily Transactions. Manage your everyday cryptocurrency transactions smoothly and without unnecessary complexity.
Additional features, such as participating in Initial DEX Offerings (IDOs) and staking, are coming soon to the Keyless Wallet ecosystem. Stay tuned for updates!
Getting Started with Your Keyless Wallet
While creating a Keyless Wallet is currently only possible through a mobile application, you can still use it to interact with decentralized applications (DApps) on your desktop computer. This is made possible by connecting your mobile wallet to your PC via WalletConnect, a common Web3 interoperability protocol.
Below, you will find detailed, step-by-step instructions on how to begin your journey with a Keyless Wallet.
How to Create a New Keyless Wallet
The process differs slightly depending on whether you have previously connected a wallet.
If You Have Not Connected a Wallet Before
Step 1. Open your mobile application and log into your account. Ensure your app is updated to version v.4.33.0 or higher.
Step 2. Navigate to the Web3 section. Tap on "Create Bybit Wallet" and then select "Keyless Wallet."
Step 3. You will be prompted to set a wallet password. This password will be used to authorize payments and transactions. It is absolutely critical that you create a secure backup of this password, as the service provider cannot recover or reset it for you.
Step 4. Click "Create." Your new Keyless Wallet is now ready.
Important Note: You can begin using your Keyless Wallet immediately, but you must complete the backup process to ensure you can recover your wallet in the future.
If You Have Already Connected a Wallet
Step 1. From within your existing wallet interface, select your current wallet and then tap on "Add Wallet."
Step 2. Choose "Create Wallet" and then select "Keyless Wallet."
Step 3. Set a strong wallet password and tap "Confirm." Remember, you must back up this password yourself.
Step 4. Click "Create" to finalize the setup of your new Keyless Wallet.
How to Back Up Your Keyless Wallet
Creating a backup is essential for recovering your wallet if you lose access to your device.
Step 1. On your Keyless Wallet's profile page, locate and tap on "Back Up Wallet."
Step 2. Enter your wallet password to authenticate and tap "Confirm."
Step 3. You will be asked to select a cloud drive service (like iCloud or Google Drive) to store your encrypted backup file.
Step 4. You must now set a Recovery Password (also known as a backup password). This is a separate password used to encrypt the backup file itself. Store this password securely, as it cannot be recovered by anyone.
Step 5. You may be redirected to log into your chosen cloud drive service to complete the upload.
Your Keyless Wallet backup is now successfully completed.
How to Import an Existing Keyless Wallet
Use this process when setting up your wallet on a new mobile device.
Step 1. In the app, go to Web3 → Import Existing Wallet → Keyless Wallet.
Step 2. You will need to set a new wallet password for use on this specific device. Enter and securely save this password before tapping "Confirm."
Step 3. Select the cloud drive service where you originally stored your wallet backup.
Step 4. Enter your Recovery Password (the backup password you set earlier) and tap "Confirm."
Your existing Keyless Wallet has now been successfully imported onto your new device.
Crucial Notes on Importing:
- The Recovery Password is the password you created during the initial backup process. Its security is paramount.
- If you delete the backup file from your cloud drive, your Keyless Wallet will be permanently lost and irrecoverable.
- The backup file in your cloud drive will be clearly named. Do not delete or modify this file.
How to Reset Your Wallet Password
If you forget the wallet password used on your local device, you cannot simply "reset" it. Instead, you must perform a device reset, which involves reinstalling the application.
Step 1. To reset the device, you will need to delete the wallet application and then reinstall it.
Step 2. After reinstalling, use the "Import Existing Wallet" process outlined above to restore your access. During this import, you will be able to set a new wallet password for the freshly installed app.
Extremely Important: This process only resets the local device password. It does not and cannot reset your Recovery Password. If you lose your Recovery Password, it will be impossible to restore your wallet from the backup, resulting in a permanent loss of access. 👉 Discover advanced wallet security strategies
Frequently Asked Questions
What is Multi-Party Computation (MPC) in simple terms?
MPC is a sophisticated security technology that splits a private key into several pieces, called shares. These shares are distributed among different parties. To sign a transaction, a threshold of these shares must collaborate computationally without any single share ever revealing the complete key. This eliminates the single point of failure present in traditional seed phrases.
Can I use my Keyless Wallet on my desktop computer?
Yes, absolutely. Although the wallet is created and managed on a mobile app, you can connect it to DApps on your desktop browser using WalletConnect. Simply scan the QR code presented by the DApp with your mobile wallet to establish a secure connection.
What is the difference between my Wallet Password and my Recovery Password?
Your Wallet Password is used to access the wallet and approve transactions on your specific mobile device. Your Recovery Password is used to encrypt the backup file stored in your cloud drive. You need the Recovery Password to import your wallet onto a new device. Both are vital and both are solely your responsibility.
What happens if I lose my phone?
If you lose your phone but have successfully created a backup with your Recovery Password, you can easily recover your wallet on a new device. Simply install the application and follow the "Import Existing Wallet" steps, using your cloud backup and Recovery Password.
Is a Keyless Wallet considered a custodial wallet?
No, a true MPC-based Keyless Wallet is non-custodial. The service provider never has full access to or control over your private key shares. You retain ultimate control over your assets, but with significantly enhanced security compared to traditional non-custodial wallets.
Are there any transaction fees associated with using a Keyless Wallet?
The wallet itself does not impose additional fees. However, you will still need to pay the standard network gas fees (e.g., on Ethereum, BSC, etc.) for any blockchain transactions you authorize, just as you would with any other self-custody wallet.