Bitcoin: xpub master pub key view only wallet shows different balance than seed generated wallet with same pub key? also different addresses

Here is an article based on your experience with Bitcoin and Electra wallets:

Title: Bitcoin XPub Master Pub Key: Amazing Discrepancy Between Seed-Generated Wallet and View-Only Wallet

Introduction

The Bitcoin Electra wallet has become a popular choice among cryptocurrency users, providing a convenient interface to manage their digital assets. One of the key features of Electra is its ability to generate wallets with XPub keys (pronounced “x-pub”), which are more secure than traditional seed wallets. However, recently I encountered an unexpected issue with one of my Electra wallets that made me doubt the security and integrity of the data stored in it.

Problem: Discrepancy between balance and address display

On March 3, 2024, I created a new Electra wallet called “WEL”. To create this wallet, I followed the instructions on the Electra website and used my computer to generate a public key (XPub) for the wallet.

In the Electra dashboard, I imported a read-only wallet using WEL’s XPub key. When I checked my balance in the “View Only Wallet” section, I was surprised to see that it showed a different amount than the main Electra dashboard. This discrepancy raised some concerns and prompted me to investigate further.

Verdict: different addresses

Upon closer inspection of both wallets, I noticed another unexpected difference: different addresses were used to send and receive transactions. The view-only wallet seemed to generate a completely separate set of addresses that were not reflected in the main Electra dashboard. This means that the wallet generated using seed could be compromised or fake.

Conclusion

This experience got me thinking about the security of my Electra wallet data. While this may seem like a minor issue, I want to stress the importance of exercising caution when managing your Bitcoin and other cryptocurrency holdings. I will keep a close eye on my wallets and addresses to ensure they remain secure.

Recommendations

To avoid similar issues in the future:

  • Double-check seed generation: Make sure you generated your wallet with the correct XPub key and followed the Electra instructions.
  • Check wallet balance: Regularly check your balance in both your main and view-only wallets to ensure consistency.
  • Monitor address usage: Monitor the addresses used to send and receive transactions, as differences may indicate compromised seed data.

Being aware of these potential issues can help you protect your cryptocurrency holdings from unauthorized access or tampering.

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