I am planning to do cold staking using Daedalus and Yoroi wallets; 50 % each on these wallets. I heard that a new test Daedalus wallet will be released once the snapshot is taken for us to connect and start staking. If this is true, in order to connect to test Daedalus wallet, we may have to enter the private key (12 key words).
Below are the questions. Appreciate if someone could help to get answers please.
How safe my private key entered on testnet will be?
What will happen to testnet snapshot taken once the testing phase is done?
How can we ensure that my private key will not be stolen from testnet snapshot in future?
Yoroi has only one wallet as chrome extension. Will there be another chrome extension released?
I hope I am making sense here. Apologies if the question is not valid.
i suspect you’d have to “restore” your wallet on the incentivised testnet, if so then yes, you will need to use your 12 secret key words to access ada/delegate from the testnet version of daedalus
if you are concerned/paranoid about security on the testnet than you can always migrate your ADA to a new daedalus/yoroi account with new key words after the snapshot is taken and then proceed to use your old secret key words on the testnet
The ADA is on the blockchain, therefore after the snapshot it will be on the testnet, and therefore will be available for delegating only if (by assuming that only Yoroi and Daedalus will be supported in the new testnet):
the mainnet wallet is created by Yoroi or Daedalus,
or any other methods that use the same address/wallet schemes, mnemonics length and language, and
the user has the mnemonics (12, 15 or 27 length) that was used for creating the wallet/addresses.
Therefore, if somebody used some sophisticated methods that Yoroi and Daedalus does not support e.g. created wallet or addresses using cardano-cli /w plausible deniability and/or with different schemes/length/language that are not supported by Yoroi/Daedalus, then it won’t work on the testnet, due to the fact that Yoroi and Daedalus only accepts spending keys and not Recovery password and have specified wallet schemes and mnemonic length and language.
It simply means: if Yoroi or Daedalus can recover the same address/wallet from the mnemonics provided, then it will be available for delegation on the testnet. Otherwise does not, provided that cardano-cli will not be supported by the testnet.
Thank you Pal, Franco, Rob for the reply. Much appreciated.
It’s a bit tedious process in case we are going to have another set of test wallets (Daedalus
& Yoroi). After seeing the video and then reading reply from Pal, I can understand that there are different point of views related to security of 12 /16 key words used to restore test wallets. It would have been nice if this is clarified by IOHK and Emurgo teams.
Yes, but how? I am sure that they will use the new bech32 address scheme for the delegation and for the pools on the incetivised testnet.
Therefore, after the snapshot, you need to migrate your ADA to the new address scheme, or it can be automated by Yoroi and Daedalus when you supply your mnemonics. Means it creates an old type wallet and a new one from the mnemonics first, then it will move all the funds you have from the old one to the new.
But, the opposite is not trivial. As you have two parallel chains which diverge, the mainnet and the incentivised testnet, and you only can claim the delta, the rewards from testnet, but you might be not using the same wallet anymore on the mainnet ( for security reason you’ve moved off to some wallet).
I do not know, might be we need to keep the old mnemonics till snapshot to Shelley, as the incentivised testnet cannot became to the Shelley mainnet for the reason I mentioned above (diverging chains).
So, I do not know, as it’s not trivial, as money cannot be creted from nothing, so they should have some budget to this on the mainnet, we will see.
Yes, I agree the technical details will be interesting, and I would love to read something about it. On the other side, you may be overthinking things a little. Rewards are “only” balances that need to be adjusted.
I don’t want to say it a trivial thing -it is not, but as far as I understand, they don’t need to care about a budget or UTxO. To put it simply, they take something from some balance and add it to another one.