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Version: 1.0.0

Accounts

Users interact with the ZIGChain ecosystem through their Accounts. Each account is uniquely identifiable and is secured through cryptographic principles.

This documentation covers the key components of an account, how users can create and manage their accounts, and advanced features such as multisig capabilities.

Account Functionalities​

Users can utilize their ZIGChain accounts for the following purposes:

  • Digital Asset Management: Hold, send, and receive tokens and other digital assets.
  • Staking: Stake tokens to participate in network governance and earn rewards while securing the network.
  • Governance: Vote on proposals that shape the future of the ZIGChain ecosystem.
  • Smart Contracts: Create and interact with on-chain applications (smart contracts) to enable decentralized functionalities.
  • DApps: Engage with decentralized applications built on top of ZIGChain.

Core Components of an Account​

Each ZIGChain account consists of the following elements:

  • Mnemonic Phrase: A sequence of 12-24 words used as a human-readable backup for recovering an account. If a user loses their private key, this phrase can restore access.
  • Private Key: Signs transactions and messages to prove account ownership and control.
  • Public Key: Generates the account's address and verifies transactions signed with the corresponding private key.
  • Address: A unique identifier derived from the public key that is used to reference an account within the network.
  • Keyring: An account management system based on the BIP-32 standard for Hierarchical Deterministic (HD) wallets, allowing users to generate multiple key pairs from a single mnemonic seed phrase.

🔥 Example: Understanding account components

Consider the following analogy:

Imagine that you are the owner of a hotel, and you have a master key and the instructions to create the master key.

  • The Mnemonic Phrase is like a set of instructions to recreate the master key for all rooms.
  • The Private Master Key is the actual master key, giving you access to all rooms.

With the private master key you can create pairs of keys and locks (public and private keys) for each room in the hotel:

  • The Public Key functions like a lock for each room.
  • The Private Key acts as the key to open the lock.
  • The Address represents the unique room number identifying each room.

🧑‍💻How to create an account using the ZIGChain CLI​

To create an account using the ZIGChain CLI, run the following command:

zigchaind keys add <key-name>

Response example:

- address: zig1dtlhdqsmrwwc9t0es9pwh04x86rfh7c60d2222
  name: <key-name>
  pubkey: '{"@type":"/cosmos.crypto.secp256k1.PubKey","key":"AieWTW5gggcC4X43tZxE3fpaa/f0EiY666+cy8PPzzi"}'
  type: local

Important: Store your Mnemonic Phrase securely. It is the only way to recover your account if you lose access.

Mnemonic: "word1 word2 word3 ... word24"

🧑‍💻 Extra Info: Accounts and HD System ZIGChain uses a Hierarchical Deterministic (HD) system to generate the keys. Starting from a single seed, the HD system allows users to create multiple key pairs (public and private keys) with their addresses. The HD system allows:

  1. Efficient Key Management: HD wallets allow the generation of multiple keys from a single seed, requiring only one seed backup instead of storing individual keys.
  2. Privacy and Security: Generate unique keys for each transaction, enhancing privacy while maintaining easy recovery through the seed phrase.
  3. Structured Organization: Hierarchical design enables systematic key organization for different accounts and purposes.

Account Address Format​

Every account on ZIGChain is identified by a unique address structured as follows:

zig1<account-address-38-characters>

Example:
zig1wze8mn5nsgl9qrgazq6a92fvh7m5e6psjcx2du

ZIGChain distinguishes between different address types using specific Bech32 prefixes:

  1. Account Address: identify users. Address Prefix: zig1
  2. Validator Address: identify a validator node. Address Prefix: zigvaloper1
  3. Consensus Address: identify a consensus node. Address Prefix: zigvalcons1

Recover an Account using a Mnemonic Phrase​

If you lose access to your ZIGChain account, you can recover it using your 12-24 word mnemonic phrase that serves as a backup for your private key.

🧑‍💻 CLI Command to Recover an Account​

To restore an account using a previously saved mnemonic phrase:

zigchaind keys add <key-name> --recover

Follow the prompt to enter your 12-24 word mnemonic phrase. Once validated, your account will be restored, displaying the associated details.

Multisig (multi-signature) Accounts​

ZIGChain supports Multisig Accounts, which require multiple signatures to authorize transactions. This feature provides enhanced security as no single individual can control the account's assets or actions without the approval of other participants.

Multisig accounts are ideal for:

  • Shared control over funds: DAOs (Decentralized Autonomous Organizations) or businesses where multiple parties must approve transactions.
  • Enhanced security: Requiring multiple signatures reduces the risk of theft or losing funds if one key is compromised.

📌 Security Best Practices​

Protect your ZIGChain accounts and assets by following these essential security practices:

1. Mnemonic Phrase Protection

  • Use a Hardware Wallet: Store your mnemonic phrase on a hardware wallet (like Ledger or Trezor). These physical devices are designed to keep your keys safe from online threats.
  • Offline Backups: Write down your mnemonic phrase on paper or store it on an encrypted USB drive that’s kept offline. Avoid digital storage on computers or clouds.
  • Split Backups for Safety: Split your phrase into two or more parts and store them in separate, secure places. This way, losing one part won’t compromise your account.

2. Private Key Security

  • Encryption: If you must store your private key on your device, use encryption tools (like GPG or BitLocker) and strong passwords to protect them.
  • Unique Keys for Different Uses: Use separate keys for different accounts or DApps to minimize risk if one key is compromised.
  • Two-Factor Authentication (2FA): Enable 2FA on all accounts and devices accessing your ZIGChain wallet. Hardware keys (like YubiKeys) offer the strongest security.

3. Using Multisig Accounts

  • Shared Control for Important Accounts: For accounts with significant funds, implement multisig (multi-signature) setups that require multiple people to approve each transaction. This safeguards against unauthorized transfers.
  • Cold Storage Multisig: Store your multisig keys on hardware wallets or offline devices to protect against remote hacking attempts.

4. Avoiding Phishing and Scams

  • Check URLs Carefully: Only use the official ZIGChain website and trusted DApps. Bookmark the official URL to avoid fake sites.
  • Verify Transactions Before Signing: Always double-check the details of any transaction before approving it in your wallet. Malicious contracts can trick you into sending funds.

References​