Overview
The Lace paper wallet is a backup and recovery feature built into the Lace browser wallet that exports wallet recovery data as a single encrypted QR code instead of a traditional 24-word seed phrase1. Developed by IOG, it targets Cardano users who already manage PGP keys and want a printable cold backup that adds an encryption layer on top of the physical artifact. The feature sits alongside Lace's broader support for Cardano, Midnight, and Bitcoin asset management.
Key Features
- PGP-encrypted QR recovery. Recovery material is encrypted against the user's existing PGP key and encoded as a single QR code, replacing the conventional 24-word mnemonic written on paper1.
- In-wallet generation flow. Existing users generate the backup from Settings, Security, Generate paper wallet, while new users are offered the option during wallet creation or recovery1.
- Camera-based restore. Recovery is performed by holding the printed QR code up to a device camera, which Lace decrypts client-side using the user's PGP key2.
- PGP prerequisite. Lace does not create PGP keys for users, so the feature is scoped to people who already maintain a PGP keypair and understand how to protect it2.
- Non-custodial export. The paper wallet is a client-side export of recovery data from a non-custodial browser wallet, not a standalone cold-storage product.
What to Expect
Using the Lace paper wallet feels like an extension of the normal Lace setup rather than a separate tool. After installing the Lace extension from the Chrome or Firefox store, users open the wallet, navigate through Settings into the Security section, and trigger the paper wallet generator. The output is a printable page containing the encrypted QR code, intended to be stored offline the same way a seed phrase card would be.
Restoring is straightforward for anyone comfortable with Lace's normal recovery flow: the user scans the printed QR code with their camera, and Lace decrypts it locally using the PGP key. The important tradeoff is that the security model now spans two artifacts rather than one. Losing either the printed QR code or the PGP private key breaks recovery, and compromise of both would expose the wallet. This makes the feature a good fit for users already running disciplined PGP key management, and a poor fit for newcomers who would be better served by a standard seed-phrase backup or a hardware wallet.
