Private Keys
Best practices for private key management in AI-assisted blockchain development.
Overview
Private keys enable real blockchain transactions with actual assets. This guide covers secure private key management when working with AI agents, including import methods, security best practices, and production considerations.
⚠️ Security Warning: Private keys control real blockchain assets. Never share, log, or expose private keys. Always use secure storage and transmission methods.
Private Key Basics
Mock vs Private Key Wallets
WalletAgent supports two wallet modes:
Mock Wallets (Testing):
Simulated accounts with fake balances
No real blockchain transactions
Perfect for development and testing
No private key management required
Private Key Wallets (Production):
Real blockchain accounts
Actual asset transfers and transactions
Requires secure private key management
Used for mainnet and testnet operations
When to Use Private Keys
Development Scenarios:
"Test my contract on Sepolia testnet with real transactions"
"Deploy my contract to Polygon mainnet"
"Execute real token swaps on Uniswap"
"Interact with production DeFi protocols"
Importing Private Keys
Encrypted Keystore (Recommended)
The most secure method for production use:
AI Agent Prompts:
"Create encrypted keystore for secure private key management"
"Import my private key with encryption and secure storage"
"Set up encrypted key management for production use"
Benefits:
AES-256-GCM encryption with master password protection
Session-based access with automatic timeouts
Individual key encryption with unique initialization vectors
Enterprise-grade security with PBKDF2 key derivation
Secure File Storage
For local development with enhanced security:
Setup:
AI Agent Prompts:
"Import private key from ~/.wallet-private-key file"
"Load my development key from ~/keys/dev-wallet.key"
"Use the private key stored in /secure/path/wallet.key"
Benefits:
Keys stored outside project directory
Proper file system permissions
Easy backup and recovery
Suitable for local development
Direct Import (Development Only)
Only for local development with test assets:
AI Agent Prompts:
"Import private key 0xac0974... directly" (only use with test keys!)
"Use the Anvil default private key for testing"
⚠️ Warning: Never use direct import in production or with real assets.
Security Best Practices
Production Key Management
Environment Separation: Developer: "Set up separate keys for development, staging, and production"
AI Agent Response: The AI will help configure:
Development: Test keys with minimal assets
Staging: Testnet keys mirroring production setup
Production: Secure mainnet keys with proper controls
Key Migration: Developer: "Help me migrate to a new private key address safely"
AI Agent Response: The AI will guide through:
Generate new key pair
Transfer assets to new address
Update environment configuration
Verify operations with new key
Securely dispose of old key
Access Control: Developer: "Implement proper access controls for private key usage"
AI Agent Response: The AI will recommend:
Role-based access to key storage
Multi-signature for high-value operations
Audit logging for all key usage
Regular security reviews
Development Key Security
Test Key Management: Developer: "Set up secure test key management for my development environments"
AI Agent Response: The AI will configure:
Environment-specific test keys for development
Proper key storage and access methods
Clear labeling of test vs production keys
Environment access controls and procedures
Local Security: Developer: "Secure my local development environment for private keys"
AI Agent Response: The AI will help with:
Secure file permissions and storage
Local encryption options
Environment variable management
Development workflow security
Wallet Type Management
Switching Between Wallet Types
Development Workflow: Developer: "Start with mock wallet for testing, then switch to private key for deployment"
AI Agent Response: The AI will:
Set up mock wallet for initial development
Test all functionality with simulated transactions
Switch to private key wallet for real deployment
Maintain same workflow with real assets
Testing to Production: Developer: "I've tested everything with mock wallets, now move to production"
AI Agent Response: The AI will help:
Verify all test scenarios pass
Import production private keys
Switch to private key wallet mode
Execute production deployment safely
Multi-Environment Setup
Environment Management: Developer: "Set up different private keys for different environments"
AI Agent Response: The AI will configure:
Local development: Anvil default keys
Staging: Testnet keys with real test ETH
Production: Mainnet keys with proper security
Clear environment identification and switching
Private Key Operations
Basic Operations
Wallet Connection: Developer: "Connect to my private key wallet and show current balance"
AI Agent Response: The AI will:
Import the specified private key
Switch to private key wallet mode
Connect to the blockchain
Display current balance and address
Transaction Execution: Developer: "Send 0.1 ETH using my private key wallet"
AI Agent Response: The AI will:
Verify sufficient balance
Estimate gas costs
Execute the transaction
Monitor confirmation status
Advanced Operations
Multi-Chain Operations: Developer: "Use my private key on both Ethereum and Polygon"
AI Agent Response: The AI will:
Configure private key for multi-chain use
Show balances on both networks
Handle network switching seamlessly
Manage gas tokens for each network
Contract Interactions: Developer: "Deploy and interact with contracts using my private key"
AI Agent Response: The AI will:
Deploy contracts with proper gas estimation
Verify deployment success
Execute contract functions safely
Monitor all transaction confirmations
Security Monitoring
Transaction Monitoring
Activity Tracking: Developer: "Monitor all transactions from my private key wallet"
AI Agent Response: The AI will:
Track all outgoing transactions
Monitor balance changes
Report on gas usage
Alert on unusual activity patterns
Security Alerts: Developer: "Set up alerts for suspicious private key wallet activity"
AI Agent Response: The AI will configure:
Large transaction alerts
Unusual gas price notifications
Failed transaction monitoring
Balance threshold warnings
Audit and Compliance
Transaction History: Developer: "Generate an audit report of all private key wallet transactions"
AI Agent Response: The AI will provide:
Complete transaction history
Gas usage analysis
Success/failure rates
Counterparty analysis
Compliance Reporting: Developer: "Help me maintain compliance records for private key operations"
AI Agent Response: The AI will help with:
Regulatory compliance documentation
Transaction categorization and reporting
Tax reporting assistance
Audit trail maintenance
Best Practices Summary
Do's
✅ Use encrypted keystore for production keys ✅ Plan for secure key migration when needed ✅ Separate keys by environment (dev/staging/prod) ✅ Monitor and audit all private key operations ✅ Use secure file permissions and storage ✅ Test with mock wallets before using private keys ✅ Implement proper access controls
Don'ts
❌ Never hardcode private keys in code ❌ Never commit private keys to version control ❌ Never share private keys via insecure channels ❌ Never use production keys for development ❌ Never ignore security warnings or alerts ❌ Never skip testing with mock wallets first ❌ Never use the same key across all environments
Related Documentation
Encrypted Keys - Enhanced security options
User Instructions - Custom security workflows
Security Guide - General security practices
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