1 Basic understanding of the blockchain
Decentralisation: A blockchain is a public ledger that provides information of all the participants and all transactions that have ever been executed. In other words, no single individual/ruler holds exclusive access to all the data or information. This differs from the institutionalised, local, and private database which have complex and inefficient processes for reconciling between each database. Each or any number of nodes on the blockchain holds the same entire blockchain history and information. When a node is destroyed, it will not affect the preservation or transmission of historical data.
Anonymity: Every user in the blockchain has its own unique address that consists of numbers and letters. However, third party having this address will not be able to trace it back to a specific person.
Tamper-proof: All the blockchain nodes together create a powerful network. Every node is an “administrator” of the blockchain and has an incentive for participating in the network. All the data are linked and verified at every block and so has no single point of failure. Blockchain operations are irreversible and irrevocable. This means blockchain users are responsible for every transaction they make and all the resulting consequences.
2 Basic understanding of on-chain wallet
Transactions on the on-chain wallet are transactions based on the blockchain. In other words, all users’ transaction information is stored on the blockchain, rather than in the mobile terminal or any server terminal. On-chain wallet requires the responsible management of the user’s password, private key, mnemonic phrase and this information represents the user’s ownership and administration authority.
3 Difference between on-chain and off-chain
In comparison to the off-chain wallet, on-chain wallet needs HyperPay users to develop some skills and know-how to understand and securely use. On-chain wallets also require users to memorise (or store) and protect their account information themselves, including: wallet address, private key, mnemonic phrases and password.
HyperPay will NOT store any user’s security information including wallet address, password, private key, mnemonic phrases or password.
HyperPay’s staff will NEVER request any user to provide password, private key, or mnemonic phrase under any circumstance. Users must keep their own information safe and should NOT disclose these to anyone else. Whoever gets your private key or mnemonic phrase and password can obtain full access to your assets.