1. What are the differences between hot wallet and cold wallet
Hot wallets are wallets that can be connected to the Internet, while cold wallets are kept offline at all times. Funds stored in a hot wallet are more accessible in comparison to funds in a cold wallet but it will have lower security
Hot wallets are wallet you generally see as an App or on your PC. As your phone or PC are connected to the internet at all times, it is easy to send or receive funds. However, online devices can be hacked easily.
Cold wallets are devices that are made especially to generate and hold your private keys. They are always offline so hackers cannot access your information.
2. Mnemonic Generation (BIP39) Simply Explained
ELLIPAL follows the BIP 39 mnemonic generation rules.
BIP39 describes the implementation of a mnemonic sentence.
It consists of two parts: generating the mnemonic and converting it into a binary seed. The English-language wordlist for the BIP39 standard has 2048 words, so if the phrase contained only 12 random words, the number of possible combinations would be 2048¹² = 2¹³², and the phrase would have 132 security bits.
The first 4 letters of each word be used to complete the full word. You can search your full word via the below link.
3. What is BIP39?
BIP39 or Bitcoin Improvement Proposal: 39 is one of the many design ideas that was approved by an economic majority of the Bitcoin community and became a standard for many popular wallets.
BIP39 is the use of a mnemonic phrase -- a group of easy to remember words -- to serve as a back up to recover your wallet and coins.
It is also known as a mnemonic seed (phrase), recovery seed (phrase), wallet back up, master seed, etc.
4. Why do I only need the first 4 letters for each word in a mnemonic seed phrase?
BIP39 words are pulled from a specific list of 2048 words. In this list, the first 4 letters are unique to each word. (including the words that only have 3 letters)
There are no two words in this list with the same first 4 letters.
That means if you have the first 4 letters, you know the rest of the word by looking for those first 4 letters in the BIP39 list.
5. What is ERC 20 token gas?
A gas unit is the smallest type of work that is processed on the Ethereum network.
Validating and confirming transactions on the ETH blockchain requires gas, depending on the size and type of each transaction. On the ELLIPAL, you can also choose how much gas you wish to spend as well. A higher gas paid will result in your transaction being finished earlier.
6. BACKUP or RECOVER your WALLET with MNEMONIC
When you create a new account in a wallet, the wallet will generate your private keys which is then randomly derived to 12 easy to remember words.
Users must keep these 12 words well as it is the only way for users to backup or recover their wallet.
Users can select Add Account -> Recover via Mnemonics and enter their mnemonics to recover their accounts on the ELLIPAL.