# Account Creation in Wallet

### 1. **Mnemonic Setup**

When you first create a wallet, the system generates a **12-word or 24-word recovery phrase** , following the **BIP-39 standard** .

#### Why Mnemonics Matter:

* Acts as the **root of trust** for your wallet.
* Deterministically generates all keys (signing + encryption).
* Must be stored securely — it’s the only way to recover your wallet if lost.

### 2. **Key Generation**

Two distinct key pairs are derived from the mnemonic:

#### SLHDSA Keys (Signing)

* **Algorithm**: NIST-standardized post-quantum signature scheme.
* **Used for**: Signing transactions on **Quranium Chain** .
* **How It Works**:
  * The mnemonic is converted into entropy using `mnemonicToEntropy`.
  * This entropy is processed with **SHAKE256** (an extendable-output function from SHA-3 family) to produce a 96-byte seed.
  * The seed is fed into `slh.slh_dsa_shake_256f.keygen` to generate the **SLH-DSA key pair** .

#### ML-KEM Keys (Encryption)

* **Algorithm**: Lattice-based post-quantum encryption scheme.
* **Used for**: Securely encrypting backups, messages, and sensitive data.
* **How It Works**:
  * The same mnemonic is used to derive a **seed** via BIP-39 (`mnemonicToSeed`).
  * A 64-byte seed is generated using **SHAKE256** .
  * The seed is passed to `ml_kem768.keygen`, which produces an ML-KEM public/private key pair.

3. Address Derivation:

* Once the **SLHDSA public key** is generated, it is used to derive a blockchain address compatible with Quranium Chain. 
* Relevant code for generating signing key pair and address :

```typescript
  async generate(mnemonic: string, derivationPath?: string): Promise<KeyPair> {
    const entropy = Buffer.from(mnemonicToEntropy(mnemonic), "hex");
    const seed96 = shake256.create({ dkLen: 96 }).update(entropy).digest();
    const keys = slh.slh_dsa_shake_256f.keygen(seed96);
    const originalPublicKey = Buffer.from(keys.publicKey);
    const strippedPubKey = originalPublicKey.subarray(1);
    const publicKeyHash = keccak256(strippedPubKey);
    const addressBytes = publicKeyHash.slice(-20);
    const address = bufferToHex(addressBytes);

    return {
      address: address.toLowerCase(),
      privateKey: bufferToHex(keys.secretKey),
      publicKey: bufferToHex(originalPublicKey),
    };
  }
```

<mark style="color:red;">**Unique Feature:**</mark>  Each account has separate keys for signing (SLHDSA) and encryption (ML-KEM).