How to set up a Fuel wallet? (Modular execution)

Understanding Fuel Wallet Architecture

1. Fuel wallet is designed specifically for the Fuel blockchain, a high-throughput, modular execution layer built with Rust and optimized for parallel transaction processing.

2. Unlike monolithic wallets, Fuel wallet leverages modular execution by separating signature verification, script execution, and state transition logic into distinct, composable components.

3. The wallet interacts directly with the Fuel node via the JSON-RPC interface, supporting both local node connections and public RPC endpoints.

4. It stores private keys using deterministic key derivation paths aligned with BIP-39 and BIP-44 standards, ensuring compatibility with existing seed phrase ecosystems.

5. Each account is represented as a UTXO-based predicate script, enabling programmable ownership and conditional spending logic without requiring smart contract deployment.

Installing Fuel Wallet CLI

1. Run cargo install fuel-core fuel-wallet to fetch the latest stable binaries from the official Fuel Labs GitHub repository.

2. Verify installation integrity by executing fuel-wallet --version and confirming output matches the current release tag on crates.io.

3. Initialize a new local Fuel node in development mode using fuel-core --db-type in-memory before launching wallet operations.

4. Configure the wallet’s default network by editing ~/.fuel/config.toml and setting the node_url field to point to your running node or a supported public endpoint.

5. Ensure Rust toolchain version 1.75+ is installed, as earlier versions fail to compile certain predicate verification modules used during wallet setup.

Generating and Securing Your Account

1. Execute fuel-wallet new to generate a new BIP-39 mnemonic phrase consisting of exactly 12 words.

2. Store the mnemonic offline using air-gapped hardware or encrypted offline storage—never in cloud notes, screenshots, or unencrypted files.

3. Derive the first account address with fuel-wallet account new, which computes the predicate script hash and displays its corresponding base-32 encoded Fuel address.

4. Fund the account by sending ETH or tokens to the generated address through a bridge compatible with Fuel’s canonical token standard (e.g., SwayBridge or Fuel Bridge).

5. Confirm balance visibility using fuel-wallet balance, which queries the node’s UTXO set and decodes predicate-owned coins.

Executing Modular Transactions

1. Compose a transaction script using Sway, compile it with forc build, and obtain the bytecode and ABI JSON output.

2. Use fuel-wallet tx create to generate a raw transaction structure referencing the compiled script and input UTXOs.

3. Sign each input individually with its corresponding predicate using fuel-wallet tx sign, respecting the modular verification model where each signature is validated independently.

4. Submit the fully signed transaction with fuel-wallet tx submit, triggering parallel execution across available VM instances on the Fuel node.

5. Monitor status via fuel-wallet tx status , which returns individual receipt outcomes per script invocation within the transaction.

Frequently Asked Questions

Q: Can I import an existing Ethereum private key into Fuel wallet?A: No. Fuel wallet does not support direct Ethereum key imports because its signature scheme uses BLS12-381 and predicate-based ownership rather than ECDSA secp256k1. You must use a new mnemonic or derive a Fuel-compatible key path.

Q: Why does fuel-wallet balance show zero even after bridging tokens?A: This occurs when the bridge has not yet finalized the deposit on-chain or when the wallet’s configured node has not synced past the block containing the deposit event. Verify finality status on the bridge dashboard and confirm node sync height.

Q: Is it possible to run multiple accounts from one mnemonic in Fuel wallet?A: Yes. Fuel wallet supports hierarchical deterministic derivation using BIP-44 paths. Use fuel-wallet account new --index N to generate additional accounts from the same seed.

Q: What happens if I lose my mnemonic but have exported a predicate script?A: Predicate scripts alone cannot recover access. Without the original mnemonic or private key, the UTXOs locked under that predicate are permanently inaccessible, as no centralized recovery mechanism exists.