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Key safety

Hot vs cold keys, validator key types, and hardware / KMS considerations on Terp Network

Key safety

Hot and cold keys

HotCold
AccessCan sign at any time on a networked deviceOffline or human-gated (HSM, air-gapped)
Typical useDaily spend, dApp UXValidator operator funds, large treasuries
RiskHigher if device compromisedLower online attack surface

Browser wallets (e.g. Keplr) are hot. Ledger is colder for account keys. Validator consensus signing needs continuous availability — use KMS/HSM patterns, not a browser wallet.

A validator may handle several key roles:

  1. Consensus key (ed25519) — signs blocks continuously. Bech32 often terpvalcons / terpvalconspub. Prefer TMKMS / HSM; never leave raw key on a public host.
  2. Operator key (secp256k1) — create/edit validator params. Bech32 terpvaloper. Prefer cold or hardware.
  3. Delegator / account key — stake and transfers. Bech32 terp / terppub.

Operator and delegator are often the same account for small operators; separate them as stake grows.

Private key vs signing facility

ModelIf the validator host is compromised
Host holds raw private keyKey may be stolen → ongoing double-sign risk until key is rotated/tombstoned
Host only gets signatures from KMS/HSMRisk limited to the window the signing service remains reachable

Mitigations

  • HSM: key material rarely (or never) leaves the device after setup
  • KMS: separate machine provides signatures over a private network; can rate-limit and detect double-sign attempts
  • Combine: HSM plugged into KMS host, KMS dials remote validator

See TMKMS and Sentry array.

Everyday wallet hygiene

  • Never type a seed into a website form
  • Prefer hardware for large balances
  • Verify chain ID (morocco-1 / 90u-4) and fee denom before signing
  • Keep a tested recovery path (backup)

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