This section describes all the details of cryptographic algorithms which are used to: 1. Create private and public keys from seed. 2. Create addresses from public key. 3. Create blocks and transactions signing.

We use: 1. Blake2b256 and SHA2-256 algorithms (in the form of hash chain) to create a cryptographic hashes used . 2. ED25519 in order to create and verify signatures. 3. Base58 is used to create the string form of bytes.

Bytes encoding Base58

All arrays of bytes in the project are encoded by Base58 algorithm with Bitcoin alphabet to make it easier for humans to read (text readability).


The string teststring is coded into the bytes [5, 83, 9, -20, 82, -65, 120, -11]. The bytes [1, 2, 3, 4, 5] are coded into the string 7bWpTW.

Creating a private key from a seed

A seed string is a representation of entropy, from which you can re-create deterministically all the private keys for one wallet. It should be long enough so that the probability of selection is an unrealistic negligible.

In fact, seed should be an array of bytes but for ease of memorization, the LTO wallet uses Brainwallet, to ensure that the seed is made up of words and easy to write down or remember. The application takes the UTF-8 bytes of the string and uses them to create keys and addresses.

For example, seed string manage manual recall harvest series desert melt police rose hollow moral pledge kitten position add after reading this string as UTF-8 bytes and encoding them to Base58, the string will be coded as xrv7ffrv2A9g5pKSxt7gHGrPYJgRnsEMDyc4G7srbia6PhXYLDKVsDxnqsEqhAVbbko7N1tDyaSrWCZBoMyvdwaFNjWNPjKdcoZTKbKr2Vw9vu53Uf4dYpyWCyvfPbRskHfgt9q.

A seed string is involved with the creation of private keys. To create private key using the official web wallet or the node, to 4 bytes of int 'nonce' field (big-endian representation), which initially has a value of 0 and increases every time you create the new address, should be prepended to seed bytes. Then we use this array of bytes for calculate hash sha256(blake2b256(bytes)). This resulting array of bytes we call account seed, from it you can deterministicly generate one private and public key pair. Then this bytes hash is passed in the method of creating a pair of public and private key of ED25519 algorithm.


Brainwallet seed string

manage manual recall harvest series desert melt police rose hollow moral pledge kitten position add

As UTF-8 bytes encoded


Account seed bytes with nonce 0 before apply hash function in Base58


blake2b256(account seed bytes)


Account seed ( sha256(blake2b256(account seed bytes)) )


Account seed after Sha256 hashing (optional, if your library does not do it yourself)


Created private key


Created public key


Creating address from public key

Our network address obtained from the public key depends on the byte chainId ('T' for testnet and 'L' for mainnet), so different networks obtained a different address for a single seed (and hence public keys). Creating a byte addresses described in more detail here.


For public key


in mainnet network (chainId 'W') will be created this address