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Copy file name to clipboardExpand all lines: docs/lnd/key_import.md
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# Overview
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This document serves as an introductory point for users interested in reducing
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their hot-wallet risks, allowing them to maintain on-chain funds outside of
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`lnd` but still be able to manage them within `lnd`. As of `v0.13.0-beta`, `lnd`
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is able to import BIP-0049 and BIP-0084 extended public keys either at the
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account path (`m/purpose'/coin_type'/account'`) or at the address index path
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(`m/purpose'/coin_type'/account'/change/address_index`) as watch-only through
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# Key Import
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## Overview
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This document serves as an introductory point for users interested in reducing\
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their hot-wallet risks, allowing them to maintain on-chain funds outside of`lnd` but still be able to manage them within `lnd`. As of `v0.13.0-beta`, `lnd`\
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is able to import BIP-0049 and BIP-0084 extended public keys either at the\
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account path (`m/purpose'/coin_type'/account'`) or at the address index path\
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(`m/purpose'/coin_type'/account'/change/address_index`) as watch-only through\
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the `WalletKit` APIs.
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Note that in order to follow the rest of this document and/or use the
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`WalletKit` APIs, users will need to obtain an `lnd` build compiled with the
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`walletrpc` tag. Our release builds already include this tag by default, so this
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Note that in order to follow the rest of this document and/or use the`WalletKit` APIs, users will need to obtain an `lnd` build compiled with the`walletrpc` tag. Our release builds already include this tag by default, so this\
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would only be necessary when compiling from source.
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# `lnd`'s Default Wallet Accounts
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##`lnd`'s Default Wallet Accounts
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Upon initializing `lnd`, a wallet is created with four default accounts:
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* A custom BIP-0049 account (more on this later) to generate NP2WKH external
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* A custom BIP-0049 account (more on this later) to generate NP2WKH external\
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addresses.
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* A BIP-0084 account to generate P2WKH external and change addresses.
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* A catch-all BIP-0049 account where all imported BIP-0049 address keys (NP2WKH
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* A catch-all BIP-0049 account where all imported BIP-0049 address keys (NP2WKH\
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addresses) exist within.
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* A catch-all BIP-0084 account where all imported BIP-0049 address keys (P2WKH
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* A catch-all BIP-0084 account where all imported BIP-0049 address keys (P2WKH\
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addresses) exist within.
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Prior to `v0.13.0-beta`, these accounts were abstracted away from users. As part
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of the key import feature, they are now exposed through the new `WalletKit` RPCs
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(`ListAccounts`, `ImportAccount`, `ImportPublicKey`) and the `lncli wallet
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accounts` command.
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Prior to `v0.13.0-beta`, these accounts were abstracted away from users. As part\
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of the key import feature, they are now exposed through the new `WalletKit` RPCs\
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(`ListAccounts`, `ImportAccount`, `ImportPublicKey`) and the `lncli wallet accounts` command.
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```shell
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$ lncli wallet accounts
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--help, -h show help
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```
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## Account Details
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###Account Details
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Before interacting with the new set of APIs, users will want to become familiar
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with how wallet accounts are represented within `lnd`. The
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`WalletKit.ListAccounts` RPC or `lncli wallet accounts list` command can be used
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Before interacting with the new set of APIs, users will want to become familiar\
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with how wallet accounts are represented within `lnd`. The`WalletKit.ListAccounts` RPC or `lncli wallet accounts list` command can be used\
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to retrieve the details of accounts.
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```shell
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}
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```
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There's a lot to unpack in the response above, so let's cover each account field
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in detail. As mentioned above, four default accounts should exist, though only
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two are shown in the output. The catch-all imported accounts are hidden by
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There's a lot to unpack in the response above, so let's cover each account field\
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in detail. As mentioned above, four default accounts should exist, though only\
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two are shown in the output. The catch-all imported accounts are hidden by\
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default until a key has been imported into them.
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*`name`: Each account has a name it can be identified by. `lnd`'s default
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spendable accounts have the name "default". The default catch-all imported
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*`name`: Each account has a name it can be identified by. `lnd`'s default\
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spendable accounts have the name "default". The default catch-all imported\
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accounts have the name "imported".
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*`extended_public_key`: The BIP-0044 extended public key for the account. Any
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addresses generated for the account are derived from this key. Each key has a
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version prefix that identifies the chain and derivation scheme being used. At
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*`extended_public_key`: The BIP-0044 extended public key for the account. Any\
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addresses generated for the account are derived from this key. Each key has a\
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version prefix that identifies the chain and derivation scheme being used. At\
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the time of writing, `lnd` supports the following versions:
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*`xpub/tpub`: The commonly used version prefix originally intended for
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BIP-0032 mainnet/testnet extended keys. Since `lnd` does not support
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BIP-0032 extended keys, this version serves as a catch-all for the other
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*`xpub/tpub`: The commonly used version prefix originally intended for\
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BIP-0032 mainnet/testnet extended keys. Since `lnd` does not support\
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BIP-0032 extended keys, this version serves as a catch-all for the other\
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versions.
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*`ypub/upub`: The version prefix for BIP-0049 mainnet/testnet extended keys.
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*`zpub/vpub`: The version prefix for BIP-0084 mainnet/testnet extended keys.
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*`address_type`: The type of addresses the account can derive. There are three
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*`address_type`: The type of addresses the account can derive. There are three\
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supported address types:
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*`WITNESS_PUBKEY_HASH`: The standard derivation scheme for BIP-0084 with
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*`WITNESS_PUBKEY_HASH`: The standard derivation scheme for BIP-0084 with\
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P2WKH for external and change addresses.
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*`NESTED_WITNESS_PUBKEY_HASH`: The standard derivation scheme for BIP-0049
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*`NESTED_WITNESS_PUBKEY_HASH`: The standard derivation scheme for BIP-0049\
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with P2WKH for external and change addresses.
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*`HYBRID_NESTED_WITNESS_PUBKEY_HASH` A custom derivation scheme for BIP-0049
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used by `lnd` where NP2WKH is used for external addresses and P2WKH for
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*`HYBRID_NESTED_WITNESS_PUBKEY_HASH` A custom derivation scheme for BIP-0049\
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used by `lnd` where NP2WKH is used for external addresses and P2WKH for\
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change addresses.
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*`master_key_fingerprint`: The 4 byte fingerprint of the master key
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corresponding to the account. This is usually required by hardware
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*`master_key_fingerprint`: The 4 byte fingerprint of the master key\
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corresponding to the account. This is usually required by hardware\
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wallet/external signers to identify the proper signing key.
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*`derivation_path`: The BIP-0044 derivation path used on the master key to
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*`derivation_path`: The BIP-0044 derivation path used on the master key to\
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obtain the account key.
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*`external_key_count`: The number of external addresses generated.
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*`internal_key_count`: The number of change addresses generated.
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*`watch_only`: Whether the wallet has private key information for the account.
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`lnd`'s default wallet accounts always have private key information, so this
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*`watch_only`: Whether the wallet has private key information for the account.`lnd`'s default wallet accounts always have private key information, so this\
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value is `false`.
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# Key Import
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##Key Import
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An existing limitation to the key import APIs is that events (deposits/spends)
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for imported keys, including those derived from an imported account, will only
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be detected by lnd if they happen after the import. Rescans to detect past
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An existing limitation to the key import APIs is that events (deposits/spends)\
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for imported keys, including those derived from an imported account, will only\
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be detected by lnd if they happen after the import. Rescans to detect past\
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events are currently not supported, but will come at a later time.
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## Account Key Import
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###Account Key Import
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The `WalletKit.ImportAccount` RPC and `lncli wallet accounts import` command can
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be used to import an account. At the time of writing, importing an account has
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The `WalletKit.ImportAccount` RPC and `lncli wallet accounts import` command can\
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be used to import an account. At the time of writing, importing an account has\
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the following request parameters:
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*`name` (required): A name to identify the imported account with.
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*`extended_public_key` (required): A public key that corresponds to a wallet account
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represented as an extended key. It must conform to a derivation path of the
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*`extended_public_key` (required): A public key that corresponds to a wallet account\
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represented as an extended key. It must conform to a derivation path of the\
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form `m/purpose'/coin_type'/account'`.
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*`master_key_fingerprint` (optional): The fingerprint of the root key (also
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known as the key with derivation path m/) from which the account public key
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was derived from. This may be required by some hardware wallets for proper
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*`master_key_fingerprint` (optional): The fingerprint of the root key (also\
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known as the key with derivation path m/) from which the account public key\
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was derived from. This may be required by some hardware wallets for proper\
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identification and signing.
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*`address_type` (optional): An address type is only required when the extended
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account public key has a legacy version (xpub, tpub, etc.), such that the
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*`address_type` (optional): An address type is only required when the extended\
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account public key has a legacy version (xpub, tpub, etc.), such that the\
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wallet cannot detect what address scheme it belongs to.
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*`dry_run` (optional): Whether a dry run should be attempted when importing the
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account. This serves as a way to confirm whether the account is being imported
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correctly by returning the first N addresses for the external and internal
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branches of the account. If these addresses match as expected, then it should
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*`dry_run` (optional): Whether a dry run should be attempted when importing the\
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account. This serves as a way to confirm whether the account is being imported\
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correctly by returning the first N addresses for the external and internal\
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branches of the account. If these addresses match as expected, then it should\
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be safe to import the account as is.
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For the sake of simplicity, we'll present an example with two `lnd` nodes Alice
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and Bob, where Alice acts as a signer _only_, and Bob manages Alice's on-chain
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BIP-0084 account by crafting transactions and watching/spending addresses. Since
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Alice will only act as a signer, we'll want to import her BIP-0084 account into
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For the sake of simplicity, we'll present an example with two `lnd` nodes Alice\
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and Bob, where Alice acts as a signer _only_, and Bob manages Alice's on-chain\
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BIP-0084 account by crafting transactions and watching/spending addresses. Since\
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Alice will only act as a signer, we'll want to import her BIP-0084 account into\
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Bob's node, which will require knowledge of Alice's extended public key.
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Alice's BIP-0084 extended public key can be obtained as follows.
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$ lncli-bob wallet accounts import vpub5Z9beF6NYCrHeDmKC38tM3xXMDFFSARa9sdHRPChEMGqtxiELfZB8hm6FwBpBvfPpX2HGG8edYVV9Wupe43PEJJhhfnz1egtQNNaDXyYExn alice
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```
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Before Bob imports the account, they may want to confirm the account is being
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imported using the correct derivation scheme. This can be done with the dry run
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request parameter. When a dry run is done, the response will include the usual
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account details, as well as the first 5 external and change addresses, which can
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Before Bob imports the account, they may want to confirm the account is being\
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imported using the correct derivation scheme. This can be done with the dry run\
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request parameter. When a dry run is done, the response will include the usual\
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account details, as well as the first 5 external and change addresses, which can\
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be used to confirm they match with what the account owner expects.
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