Why Paper Wallets?

Key Components

A Paper Wallet, also known as Cold Storage, is one of the most fundamental and secure ways to store cryptocurrency. In blockchain technology, every wallet consists of two key components:

• A Private Key – This is your secret key that grants full access to your funds.
• A Public Key – Derived from the private key, this functions as your account address, allowing others to send funds to you.

One essential rule of cryptography is that while a public key can be derived from a private key, the reverse is impossible—meaning no one can determine your private key from your public address.

The Role of the Private Key

A private key has one critical function in the blockchain:

✅ It signs transactions before they are broadcast to the network for processing.

That's it. All transactions are recorded on the blockchain, where they remain public and immutable. While public keys are visible, only the owner of the corresponding private key can move the funds.

The Shift Towards Seed Phrase Wallets

To improve wallet usability, the concept of seed phrases was introduced. A seed phrase is a set of 12-24 words that can generate multiple wallet accounts within a single wallet.

This innovation offers significant advantages:

• ✅ Users can manage multiple accounts under one seed phrase, making organization easier.
• ✅ Since new addresses are automatically generated, tracking assets becomes difficult for outsiders, increasing privacy.

However, while this system offers convenience, it also introduces new risks.

Security Concerns with Modern Wallets

1. The Risk of Losing Access Due to Derivation Paths

• 🔸 Different wallet providers use different derivation paths
• 🔸 Switching providers might result in "empty" wallets due to path differences
• 🔸 Non-standard paths make long-term storage risky

2. The Danger of Storing Seeds on Internet-Connected Devices

• 🔸 Seeds must be stored on internet-connected devices
• 🔸 Device compromise puts entire portfolio at risk
• 🔸 Internet-connected devices are always potential targets

3. Over-Simplifying Crypto Wallets Creates a Security Gap

• 🔸 People store large amounts in mobile wallets
• 🔸 Unlike physical wallets, hacked phones mean total loss
• 🔸 Large sums in mobile wallets pose significant risks

Why Cold Storage is the Best Long-Term Solution

For storing large amounts of LanaCoins long-term, Paper Wallets (Cold Storage) are superior because:

• ✅ Monitor balance anytime without exposing private key
• ✅ Create multiple paper wallets for diversified storage
• ✅ Develop offline transaction signing systems

This means your private keys remain 100% offline, providing maximum security—especially for larger holdings.

Once your LanaCoins are stored in Cold Storage, you can always transfer them to Cryptowallet.si or check your balance using CryptoInfo.

This video explains how to migrate Bitcoin, which follows a similar process to Lana. However, since Lana is a different coin, the exact derivation path used by some wallets may vary.

For Bitcoin, the standard derivation path is typically m/44'/0'/0'/0/0., while for Lana, we know that CryptoCurrency.si uses m/44'/10'/0'/0/0. However, the derivation path used by Slavi remains unknown.

But...If you're actively trading multiple currencies, Cold Storage is clearly not a practical solution.

The Future of LanaCoin

💡 We will see beautiful new practices that redefine how people interact with money—loving it, but not being controlled by it.

It's time to build a financial future based on awareness, security, and freedom.