How secure is my wallet?

At Parallax, we employ a sophisticated cryptographic method known as key sharding, to protect the assets in your self-custodial wallet.

To enhance security without overwhelming users unfamiliar with things like “seed phrases”, we've developed a system that blends intuitive user experience with cryptographic security, inspired by password managers like 1Password.

Key Sharing

This method involves splitting a private cryptographic key into multiple pieces, known as shards. Each shard on its own does not grant access to your funds; however, when enough shards are combined, they reconstruct the original key, allowing access.

Imagine your Parallax balance as a secure lockbox, with a key that has been divided into several parts. To unlock this box, a specific number of these parts must be brought together. In Parallax's setup, one part of this key is associated with your PIN which you must enter while you are logged into the Parallax app.

This system ensures that you have exclusive control over your funds, as only you can access or move your money.

How it works

Our security is built on a 3-shard system, requiring 2 for wallet access. Think of it like a lock that requires two keys to open.

1. PIN Shard: A six-digit PIN for transaction authorization. Secure it as you would a bank PIN.
2. Security File Shard: A downloadable file containing a six-word security phrase for PIN recovery. Note: This is NOT to be confused with a seed phrase. This is just an easy way to help you recover your PIN.
3. Enclave Shard: Held within a secure enclave, accessible only through the Parallax app.

During setup, you'll create a PIN and download the Security File. It's vital to keep these secure, as even Parallax cannot access them.