Wallet Backup and Vaultody Open Source Recovery Tool Guide
Categories: Industry Knowledge, Technology
• Approximate reading time: 4 minutes
Overview
Vaultody’s MPC (multi‑party computation) wallet infrastructure is designed for institutions that require strong, policy‑driven control over digital assets. A core part of that security model is a reliable, verifiable backup and recovery process. Without a tested backup, even the strongest cryptography cannot protect you from operational loss.
This article explains how the Vaultody Open Source Recovery Tool works, why Vaultody requires wallet backups for dashboard‑created wallets, and how to use the tool to both create a secure backup and recover a wallet if needed.
What Is the Vaultody Open Source Recovery Tool?
The Vaultody Open Source Recovery Tool is a small, auditable application published on the official Vaultody GitHub repository. It allows you to:
- Create encrypted backups of Vaultody MPC wallets.
- Generate and store RSA public–private key pairs used to protect those backups.
- Produce cryptographically strong random passwords for encryption.
- Derive the master extended private key (xPriv) needed to restore a wallet.
The tool uses the widely adopted RSA key pair algorithm for public‑key encryption. The public key is used to encrypt backup data, while the corresponding private key, protected by a strong password, is required to decrypt it. This separation allows you to distribute verification and backup creation workflows while keeping recovery strictly controlled.
The Wallet Recovery Tool is currently available for Windows, Linux and macOS. Always download it from the official GitHub repository to reduce supply‑chain risk.
Understanding the Recovery Tool Interface
The interface is intentionally compact so that operational teams can follow a predictable, auditable process. The tool exposes four primary actions:
1. Help and usage information
This action displays documentation on how to use the tool correctly for both backup and recovery. It is a good starting point when integrating the tool into internal runbooks or compliance procedures.
2. Generate a strong random password
The tool can create long, random, high‑entropy passwords that are used to encrypt backup files and the RSA private key. These passwords should be treated as sensitive credentials and stored in a secure password manager or dedicated secrets management system.
3. Generate an RSA key pair
This action creates a matched RSA public key and encrypted private key. The public key can be safely used by your backup process to encrypt data, while the private key—further protected by the password from step 2—is required for decryption during recovery. Together, they:
- Provide cryptographic proof of wallet ownership.
- Protect backup data if a backup file is intercepted or exfiltrated.
- Support separation of duties between operations and security teams.
4. Recover a wallet and derive the xPriv
The final action performs the actual wallet recovery. When you supply the correct backup file, RSA private key and password, the tool validates that the data matches the original system information captured during backup and then exposes the corresponding master extended private key (xPriv). This xPriv is what you use to restore the Vaultody wallet.
How to Back Up Your Vaultody Wallet
Vaultody MPC wallets that are created from the Vaultody dashboard must have a backup configured as part of the initial setup. This is a deliberate safety measure to help institutional users avoid irreversible loss of funds.
Step‑by‑step backup process
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Start from the Vaultody dashboard
Log in to the Vaultody dashboard and navigate to the Settings area for the relevant MPC wallet. There you will see the option to request a wallet backup. -
Approve the backup request
Because this is an MPC wallet with role‑based controls, the wallet owner (or another authorised approver) must explicitly approve the backup request. If the request is rejected, no backup files are produced. -
Download and launch the Wallet Recovery Tool
On a trusted, preferably dedicated machine, download the tool from the official Vaultody GitHub page and launch it. -
Generate a strong password
Use the tool’s password generation action, or an approved internal secrets mechanism, to create a unique, complex password for this backup set. Record it securely in your secrets vault or password manager. -
Create the RSA key pair
Run the RSA key generation action to produce a public key and an encrypted private key. Store the private key and its password in separate, secure locations, and distribute access following your internal key‑management policy. -
Complete the backup in the tool
With the password and public key ready, follow the prompts in the Vaultody dashboard and in the Recovery Tool to generate the encrypted backup files for your wallet.
For a more implementation‑oriented description that includes API‑level details, see the official developer guide: Backup and Restore a Wallet.
How to Recover a Vaultody Wallet
If a device, key share or operational system is lost, you can use the backup created above to restore access to your MPC wallet. Recovery should be performed only on a trusted, controlled machine, following your organisation’s security procedures.
Recovery procedure
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Install the Vaultody Open Source Recovery Tool
On the device from which you will perform recovery, install or extract the latest version of the Wallet Recovery Tool from the official GitHub repository. -
Launch the tool and select “Recover Wallet”
Start the tool and choose the Recover Wallet option from the main interface. -
Provide the required recovery data
When prompted, supply:- The encrypted backup file generated during the backup process.
- The corresponding RSA private key for that backup.
- The exact password used when the backup was created.
-
Validate and derive the xPriv
The tool verifies that the supplied data matches the system information that was recorded when the backup was created. If everything is correct, it will derive and display the master extended private key (xPriv) for the wallet. -
Restore the wallet
Use the xPriv according to Vaultody’s procedures to restore the MPC wallet so that your organisation can resume operations.
Mandatory backup and security expectations
All customers who create wallets through the Vaultody dashboard are required to set up a backup during wallet creation. This requirement cannot be bypassed, because it is central to protecting institutional users against catastrophic loss of access.
Although you are free to implement alternative backup mechanisms, Vaultody strongly recommends using the official Open Source Recovery Tool because it is open to inspection, has a predictable interface, and does not require deep cryptographic expertise. In practice, the tool is essential for automated recovery: without it—and without the correct backup file, RSA private key and password—you will not be able to regenerate the wallet’s xPriv.
Note that these backup and recovery options apply exclusively to wallets that are or were created through the Vaultody dashboard. Wallets created or managed entirely outside of that environment are not covered by this tool’s standard flow.
If you would like guidance on integrating the Vaultody Wallet Recovery Tool into your internal security processes, or if you need help with a specific backup or recovery scenario, you can contact the Vaultody team for support.
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