As you know the blockchain wallet is the best wallet for gaming out there, but not all of us know well about it. Therefore, in this article we will provide you some comprehensive information about this kind of wallet. Let’s dive in!
Firstly, a blockchain wallet is a cryptocurrency wallet that allows users to manage different kinds of cryptocurrencies—for example, Bitcoin or Ethereum. A blockchain wallet helps someone exchange funds easily. Transactions are secure, as they are cryptographically signed. The wallet is accessible from web devices, including mobile ones, and the privacy and identity of the user are maintained. So a blockchain wallet provides all the features that are necessary for safe transfers and exchanges of funds between different parties.
There are many ideas related to cryptocurrency wallets, and the significant one that sometimes makes us worried is if cryptocurrency wallets are really secure. The answer of this question is hidden in the way it works.
Secondly, how does a blockchain wallet work?
Whenever you create a blockchain wallet, you are provided a private key and a public key that is associated with your wallet. It’s like when you use email for example. If you want to receive an email from someone, you give him or her your email address. However, giving out your email address doesn’t mean someone will be able to send out emails via your account. Someone would have to know your email account’s password to do that. Blockchain wallets follow a similar process using a public key and a private key together. A public key is similar to your email address as you can give it to anyone. When your wallet is generated, a public key is generated, and you can share the public key with anyone in order to receive funds. The private key is top secret. It’s similar to your password; it should not get hacked and you should not disclose it to anyone. You use this private key to spend your funds. If someone gets access to your private key, there is a high possibility that your account is compromised, and you might end up losing all the cryptocurrency deposits in your account.
As you can see, blockchain wallets or cryptocurrency wallets are really secure, the only thing you should do is follow its rules.
Thirdly, how many types of cryptocurrency wallets? Let’s find out:
Desktop wallets can be downloaded and used on a PC or laptop. They are accessible only from the single computer on which it was originally installed. They are mostly secure except in cases of a virus or a hacking attack on your computer. This would lead to the loss of all of your funds. Popular examples of a desktop wallet would be Armory and Bitcoin Knots.
Virtual wallet for cryptocurrency is also called an online wallet. They operate on the cloud and can be accessed from any location using any device without any restrictions. They are very convenient to use as private keys can be stored online. But, sometimes they are vulnerable to hacking attacks and chances of theft as they are indirectly controlled by a third party.
Mobile wallets can be utilized via an app on your smartphone. They are accepted by retail stores and supermarkets for processing various payments. They usually have limited cold storage facilities than desktop wallets. Some of the well-known mobile wallets are Green Address, Bither, and BitGo.
Hardware wallets are a bit different from software wallets like desktop, mobile, and online wallets as they do not store the user’s private keys online but store them on a hardware device like a USB. They have robust security measures as they are stored online and transactions can also be executed online. They can support different digital currencies and are seamlessly compatible with several web interfaces. Some famous hardware wallets are Trezor, Ledger Nano S, and KeepKey.
Paper wallets are easy to use and are highly secure. The software will automatically generate your private keys and public keys which can be printed. A user can easily transfer funds from their software wallet to the public address of their paper wallet. You can enter your private keys or scan the QR code on the paper wallet for transferring funds from it to your software wallet. A Bitcoin paper wallet can be printed at bitaddress org.
Finally, how to build a cryptocurrency wallet? Wait to read more on our next article!