The Singapore-based blockchain company VeChainThor (VET) announced the release of a new mobile wallet upgrade at the beginning of August 2018. Receiving feedback from their users after the initial mobile wallet release, the VeChainThor team improved multiple functions, with the most notable improvement being their “observe wallet” function.
Observe Wallet Function
VeChainThor mobile wallet users are now able to check on their node status, wallet balance, and VTHO rewards while securing their private key in a separate wallet that’s disconnected from the internet. This is what’s commonly referred to as a “cold wallet.” A wallet that’s connected to the internet is a “hot wallet.”
Using the observe wallet function creates a convenient solution for wallet maintenance that doesn’t jeopardize the security of funds. Essentially, users will be able to observe a cold wallet with a hot wallet.
Since the VeChain Foundation hasn’t released a desktop version of their wallet yet, the observe wallet function provides users the option to store their private keys on a hardware wallet, or an offline cellphone that has the mobile wallet app installed.
The ability VeChainThor users have is made possible by an authorization process that verifies the observing user and the wallet address they’re requesting information on. After the VeChainThor mobile wallet is updated to its most recent version, users will need to go through the authorization process before they’re able to observe cold wallets from afar. Any addresses they were previously watching will be securely removed.
How the Wallet Authorization Process Works
VeChainThor users will need to have a hardware wallet disconnected from the internet to store their private keys. Although there’s simple instructions included within the mobile wallet app, here are the instructions laid out in VeChain’s announcement post:
- Firstly, you need the cold wallet which contains your VeChainThor address and the private key, and the hot wallet which you will use to observe the address created in the cold wallet.
- When initiating the observe wallet authorization process in the hot wallet, you will be prompted with a random 6-digit authentication code.
- Input the 6-digit authentication code in the cold wallet interface you choose (either VeChainThor wallet app on the offline cellphone or the upcoming VeForge web wallet user interface connecting to Ledger hardware wallet) to create the authorization signature by signing the authentication code with the private key.
- Use the hot wallet to scan the authorization signature. The authorization process is now done and your VeChainThor address will be shown as an observing address in the hot wallet.
The VeChain Foundation also included a couple notes in their blog post, letting readers know that the observe wallet function is optional. Users can always store their funds in a hot wallet, or simply leave the funds in their cold wallet unobserved. To transfer funds from the observed address, users will have to access the private keys in their cold wallet manually.