Wallet encryption: Difference between revisions

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With many bitcoin clients, specifically link to the article that describes this as being the Bitcoin-Qt/bitcoind client.
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m Updating link to Bitcoin Core's wallet.dat info
 
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This is the wiki page describing the algorithm used for encrypting of the wallet.dat used in the original [[Bitcoin client]].
This page describes the algorithm used for encrypting the '''[[Wallet#Bitcoin_Core|wallet.dat]]''' file used in the original [[Bitcoin client]].


Wallet encryption uses AES-256-CBC to encrypt only the private keys
Wallet encryption uses [https://en.wikipedia.org/wiki/AES-256 <span title="Advanced Encryption Standard with 256 bit key and Cipher Block Chaining">AES-256-CBC</span>] to encrypt only the private keys that are held in a wallet.  The keys are encrypted with a master key
that are held in a wallet.  The keys are encrypted with a master key
which is entirely random.  This master key is then encrypted with
which is entirely random.  This master key is then encrypted with
AES-256-CBC with a key derived from the passphrase using SHA512 and
AES-256-CBC with a key derived from the passphrase using [https://en.wikipedia.org/wiki/SHA-512 SHA-512] and
OpenSSL's EVP_BytesToKey and a dynamic number of rounds determined by
OpenSSL's <code>EVP_BytesToKey</code> and a dynamic number of rounds determined by
the speed of the machine which does the initial encryption (and is
the speed of the machine which does the initial encryption (and is
updated based on the speed of a computer which does a subsequent
updated based on the speed of a computer which does a subsequent
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the keystore stores the keys in encrypted form.  When the passphrase
the keystore stores the keys in encrypted form.  When the passphrase
is required (to top up keypool or send coins) it will either be queried
is required (to top up keypool or send coins) it will either be queried
by a GUI prompt, or must first be entered with the walletpassphrase
by a GUI prompt, or must first be entered with the <code>walletpassphrase</code>
RPC command.  This will change the wallet to "unlocked" state where the
[[Original_Bitcoin_client/API_calls_list#Full_list|RPC command]].  This will change the wallet to "unlocked" state where the
unencrypted master key is stored in memory (in the case of GUI, only for
unencrypted master key is stored in memory (in the case of GUI, only for
long enough to complete the requested operation, in RPC, for as long as
long enough to complete the requested operation, in RPC, for as long as
is specified by the second parameter to walletpassphrase).  The wallet is
is specified by the second parameter to <code>walletpassphrase</code>).  The wallet is
then locked (or can be manually locked using the walletlock RPC command)
then locked (or can be manually locked using the <code>walletlock</code> RPC command)
and the unencrypted master key is removed from memory.
and the unencrypted master key is removed from memory.


== Implementation details of wallet encryption ==
== Implementation details of wallet encryption ==


When the wallet is locked, calls to sendtoaddress, sendfrom, sendmany,
When the wallet is locked, calls to <code>sendtoaddress</code>, <code>sendfrom</code>, <code>sendmany</code>, and <code>keypoolrefill</code> will return ''Error -13: "Error: Please enter the wallet passphrase with walletpassphrase first."''
and keypoolrefill will return Error -13: "Error: Please enter the wallet  
passphrase with walletpassphrase first."


When the wallet is unlocked, calls to walletpassphrase will fail.
When the wallet is unlocked, calls to <code>walletpassphrase</code> will fail.


When a wallet is encrypted, the passphrase is required to top up the
When a wallet is encrypted, the passphrase is required to top up the
keypool, thus, if the passphrase is rarely entered, it is possible that
keypool, thus, if the passphrase is rarely entered, it is possible that
keypool might run out.  In this case, the default key will be used as the
keypool might run out.  In this case, the default key will be used as the
target for payouts for mining, and calls to getnewaddress and getaccount
target for payouts for mining, and calls to <code>getnewaddress</code> and <code>getaccount</code>
address will return an error.  In order to prevent such cases, the keypool
address will return an error.  In order to prevent such cases, the keypool
is automatically refilled when walletpassphrase is called with a correct
is automatically refilled when <code>walletpassphrase</code> is called with a correct
passphrase and when topupkeypool is called (while the wallet is unlocked).
passphrase and when <code>topupkeypool</code> is called (while the wallet is unlocked).
Note that the keypool continues to be topped up on various occasions when
Note that the keypool continues to be topped up on various occasions when
a new key from pool is used and the wallet is unlocked (or unencrypted).
a new key from pool is used and the wallet is unlocked (or unencrypted).

Latest revision as of 10:36, 17 September 2017

This page describes the algorithm used for encrypting the wallet.dat file used in the original Bitcoin client.

Wallet encryption uses AES-256-CBC to encrypt only the private keys that are held in a wallet. The keys are encrypted with a master key which is entirely random. This master key is then encrypted with AES-256-CBC with a key derived from the passphrase using SHA-512 and OpenSSL's EVP_BytesToKey and a dynamic number of rounds determined by the speed of the machine which does the initial encryption (and is updated based on the speed of a computer which does a subsequent passphrase change). Although the underlying code supports multiple encrypted copies of the same master key (and thus multiple passphrases) the client does not yet have a method to add additional passphrases.

At runtime, the client loads the wallet as it normally would, however the keystore stores the keys in encrypted form. When the passphrase is required (to top up keypool or send coins) it will either be queried by a GUI prompt, or must first be entered with the walletpassphrase RPC command. This will change the wallet to "unlocked" state where the unencrypted master key is stored in memory (in the case of GUI, only for long enough to complete the requested operation, in RPC, for as long as is specified by the second parameter to walletpassphrase). The wallet is then locked (or can be manually locked using the walletlock RPC command) and the unencrypted master key is removed from memory.

Implementation details of wallet encryption

When the wallet is locked, calls to sendtoaddress, sendfrom, sendmany, and keypoolrefill will return Error -13: "Error: Please enter the wallet passphrase with walletpassphrase first."

When the wallet is unlocked, calls to walletpassphrase will fail.

When a wallet is encrypted, the passphrase is required to top up the keypool, thus, if the passphrase is rarely entered, it is possible that keypool might run out. In this case, the default key will be used as the target for payouts for mining, and calls to getnewaddress and getaccount address will return an error. In order to prevent such cases, the keypool is automatically refilled when walletpassphrase is called with a correct passphrase and when topupkeypool is called (while the wallet is unlocked). Note that the keypool continues to be topped up on various occasions when a new key from pool is used and the wallet is unlocked (or unencrypted).

When wallet passphrase enrcyption becomes enabled, any unused keys from the keypool are flushed (marked as used) and new keys protected with encyption are added. For this reason, make a new backup of your wallet so that you will be able to recover the keys from the new key pool should access to your backups be necessary.