How non-custodial Arqma Wallet works

The setup, in one paragraph

When you create a wallet, Arqma Wallet generates a random number on your device. That number is your private key. From it, the software derives your view key, spend key, public address, and the 25-word seed phrase that encodes the random number in a human-readable form. None of these leave your device. Our servers never see them, because there’s no “our server” in the chain at all — the wallet talks to a public blockchain, not to us.

1. Key generation happens on your device

When you tap “Create wallet,” the app calls your operating system’s cryptographically secure random number generator (CSPRNG) for 256 bits of randomness. That’s your private spend key. Everything else — address, view key, seed phrase — is derived from it deterministically.

This step is local. No network call. Even with the wallet open in airplane mode you can complete the entire create-and-back-up flow.

2. Your seed phrase is the key, in disguise

The 25 words aren’t a separate secret — they’re a different encoding of the same 256-bit number. Each word represents a chunk of that randomness, drawn from a fixed 1626-word dictionary. The last word is a checksum so the wallet can detect typos.

That’s why restoring from seed regenerates the same wallet on any device: the math is deterministic. Same seed, same key, same address, same funds.

3. Where the keys live

The private key is stored in two places on disk:

• Inside the wallet file (.keys), encrypted with the password you chose.
• In your head / on your paper backup, as the seed phrase.

Without the wallet password, the wallet file is opaque (AES-256). Without the seed, the file is the only copy — lose it and you’re relying on the seed to rebuild.

4. Signing a transaction

Sending funds is a four-step process. Steps 1–3 happen entirely on your device:

1. Build the transaction. Wallet specifies destination, amount, fee.
2. Sign it locally. Wallet uses your private key to produce a cryptographic signature proving the spend is authorised.
3. Broadcast it. Wallet sends the signed transaction to a node (yours or a remote one).
4. Confirm. Miners pick it up, include it in a block, and the network reaches consensus.

The signing key — the one thing that authorises a spend — never leaves your device. Even the node that broadcasts your transaction only sees the finished, signed transaction; it can’t produce one.

5. What we (the publisher) can and can’t do

The honest list:

• ❌ See your balance.
• ❌ See your address.
• ❌ See your transactions.
• ❌ Recover a lost seed.
• ❌ Reset your password.
• ❌ Freeze, reverse, or block a transaction.
• ✅ Publish wallet software you can audit and choose to install (or not).
• ✅ Publish security advisories and updates.

That’s the whole list. There’s no admin panel.

6. vs. a custodial wallet

On an exchange (Coinbase, Binance, Kraken), the exchange holds the private key. You hold an account password and they hold the actual key. When you log in to send funds, you’re asking the exchange to sign on your behalf. Pros: they can reset your password, recover your account, intervene in fraud. Cons: they can also freeze you, lose your funds in a breach, or fail outright.

Arqma Wallet is the inverse trade. See non-custodial explained for the user-facing comparison.

7. What this means for your security

Two things follow from the design:

1. Your seed phrase is your wallet. Anyone with the seed has the keys, regardless of device. Treat it like cash.
2. The device matters. A compromised device can capture your password and unlock the wallet file. Keep your OS patched, your AV current, and your browser extensions minimal.