OneKey Wallet Review: Lightning Hardware Wallet

Description

OneKey is a multilingual, an open source hardware wallet designed to keep your Bitcoin safe. It stores your Bitcoin’s private keys offline. Unlike software wallets on your computer or phone, which can be vulnerable to hacking, hardware wallets provide an extra layer of security. Notably, it supports the Lightning Network and Nostr.

How OneKey Works

OneKey Classic functions as a cold storage wallet, meaning your private keys are isolated from the internet, significantly reducing the risk of online attacks. It uses a secure chip to keep your Bitcoin safe from unauthorized access. The hardware wallet offers two connection options: USB-C for direct connection to your computer and Bluetooth for added flexibility.

As an airgapped wallet, the OneKey hardware wallet ensures that your private key remains completely offline throughout every transaction. Specifically, OneKey facilitates the confirmation and authorization of on-chain transactions directly on the device itself, rather than relying on a PC or smartphone for the signing process. It uses QR codes, completely isolating your private keys from any online environment. Furthermore, the wallet is compatible with various operating systems including Windows, macOS, Linux distributions, iOS, and Android.

With OneKey, you can swap Lightning to Bitcoin on-chain, or swap Bitcoin on-chain to Lightning. OneKey simplifies and accelerates the process of off-ramping or on-ramping Bitcoin from the mainnet to the Lightning Network.

Other advanced supported features include SegWit, Taproot, Watch-only wallet, and also has a built-in exchange to buy and sell Bitcoin. OneKey supports passphrases that allow you to create a hidden “duress wallet” to access a small amount of funds if pressured.

While native multi-signature transactions aren’t currently available on OneKey, this functionality can be achieved through external services like Gnosis. It’s important to remember that OneKey doesn’t offer anonymization features like Tor, PayJoin, or CoinJoin.

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OneKey Wallet Versions

OneKey’s diverse lineup of hardware wallets are the following:

• OneKey Pro: The latest OneKey version with Biometric technology and air-gapped connection.
• OneKey Touch: This touchscreen device boasts a user-friendly interface for easy management of your Bitcoin.
• OneKey Classic: This classic button-based wallet provides a secure and affordable option.
• OneKey Mini: This compact and portable option offers maximum convenience for on-the-go users.

Price

OneKey wallet prices vary depending on the model. OneKey Pro wallet is priced at $278.00, OneKey Classic 1S wallet costs $99.00, OneKey Touch wallet is priced at $249.00, OneKey Classic wallet is available for $89.00, and the OneKey Mini wallet is priced at $58.00.

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OneKey Lightning and Nostr

OneKey is the world’s first hardware wallet supporting the Lightning Network. With Lightning Network Web Standard (WebLN) integration, OneKey simplifies using the Lightning Network for faster and cheaper Bitcoin transactions. Users can send and receive Bitcoin without needing in-depth knowledge of the complexities involved in managing channels and liquidity. Furthermore, it supports the Lightning address and LNURL.

With OneKey Lightning Network feature, you can send and receive sats on the Lightning Network instantaneously and securely. It also facilitates swaps between Bitcoin and Lightning, the wallet offers enhanced convenience without the need for QR codes or invoices.

OneKey cold wallet integrates with the Nostr protocol, allowing your hardware wallet to function as a Nostr Signing Device (NSD). This enables secure message signing within the Nostr network. Nostr is an open-source social networking protocol. Within the Nostr protocol, each user message undergoes signing with a private key prior to transmission.

Supported Integrations

OneKey integrates with popular third-party software for added functionality, including:

• Electrum
• Trezor
• BTCPay Server
• MetaMask
• Bitcoin Core
• Spectre
• Sparrow
• Wasabi Wallet

Is OneKey Wallet Safe?

OneKey Wallet is designed with robust security features, including QR code and Bluetooth signing. QR code signing allows you to authorize transactions offline (airgap mode) and keep your private keys isolated from online threats, while Bluetooth signing provides a secure and convenient method for quick, wireless transaction authorization. Note that when you use Bluetooth, it means the wallet is no longer airgapped.

OneKey cold wallet stands out for its commitment to security, starting with its dual chip architecture, which shields your private key from any potential tampering. Unlike some hardware wallets that store private keys directly in the microprocessor (MCU), which poses a security risk if hacked, OneKey takes a different approach. It securely stores private keys in a separate, highly fortified chip known as the “Security Chip” (THD89), making it exceedingly difficult for unauthorized access.

Moreover, OneKey’s open-source code empowers anyone to check and verify its security protocols and, enabling independent security audits. Its software, firmware, and hardware are all open source. This ensures that the integrity of the system remains uncompromised.

The company implements various measures to thwart supply chain attacks, where hackers replace authentic hardware wallets with malicious ones. Their tamper-proof packaging has self-destruct tear strips and tamper-evident tape with a letter pattern that can’t be restored if opened again. When receiving your OneKey hardware wallet, check the self-destruct seal for signs of tampering and ensure the tamper-evident tape is intact and undisturbed. Additionally, OneKey maintains stringent supply chain management by partnering with Apple-approved service providers.

For enhanced security, OneKey also supports multi-signature transactions, requiring multiple confirmations for added protection against unauthorized access. Additionally, its air-gapped signing feature, coupled with camera and biometric authentication, ensures that transactions are securely executed even in offline environments. Finally, both duress wallets and watch-only wallet capabiities offer additional layers of security.

However, OneKey wallet does not support Shamir backups, a method of splitting a recovery seed into multiple parts using Shamir’s Secret Sharing Scheme. In this method, each part can be stored separately, and a minimum number of parts (a quorum) is required to reconstruct the original seed. Without Shamir backups, OneKey relies on a single recovery seed, meaning that if this seed is lost, damaged, or compromised, the wallet cannot be recovered. This absence is a drawback for advanced users who prioritize maximum security.

It’s important to note that OneKey Lightning is a custodial wallet, meaning you don’t have full control over the private keys. This introduces the risk associated with custodial wallets, where the third-party service provider controls your funds, and you are reliant on them for securing your assets. If you prioritize full control over your Bitcoin, a non-custodial solution may be a better fit.

In February 2023, security researchers found a critical flaw that allowed attackers to potentially steal a user’s funds in under a second. This exploit targeted the communication between the OneKey device and its companion app. It bypassed security measures and could perform actions on the device without user confirmation. Thankfully, OneKey released a firmware update to address this issue.

In the same year, another vulnerability allowed attackers to bypass the OneKey Mini’s security PIN by resetting the device and exploiting a weakness during factory mode. This attack required physical access to the device, making it less risky than the former, but still a security concern. OneKey also patched this flaw.

Supported Languages

OneKey offers a wide range of language options, including Arabic, Bengali, German, English, Spanish, Filipino, French, Hindi, Indonesian, Italian, Japanese, Korean, Mongolian, Portuguese, Brazilian Portuguese, Russian, Thai, Ukrainian, Vietnamese, Simplified Chinese, and Traditional Chinese.

OneKey Wallet Pros and Cons: Summary

Is OneKey a Good Wallet?

OneKey’s open-source nature ensures transparency and trustworthiness. With support for multiple integrations, languages, and compatibility with the Lightning Network, OneKey offers enhanced functionality. At the time of writing, OneKey is the only hardware wallet that supports the Lightning transactions. Moreover, its adoption of the Nostr protocol further enhances its capabilities for advanced users.

On the pricing front, OneKey offers a range of options catering to different budgets, with models like the OneKey Classic available for $89.00 and the higher-end OneKey Pro priced at $278.00. While the higher-end price may seem relatively high compared to some other hardware wallets on the market, the versatility and security features provided by OneKey Pro may justify the investment for some users.

Unlike some wallets focused solely on Bitcoin such as Blockstream Jade, Passport, and Coldcard, OneKey supports a vast array of cryptocurrencies. This can be a drawback if you only deal in Bitcoin. For beginners focused solely on Bitcoin, the variety of altcoin options might be confusing, overwhelming, and distracting.

While some view the open-source nature as a plus for transparency, wallets supporting many cryptocurrencies inherently have more code, which could potentially create more entry points for vulnerabilities. Moreover, privacy-focused users will be disappointed because OneKey lacks anonymization features like CoinJoin, PayJoin, or Tor.

For those with limited experience in Bitcoin, we would recommend exercising caution before opting for this wallet. In addition, some users have complained about occasional customer support delays.

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