About Cryptocurrency Wallet development:
A device or an app to store your keys which are public or private by using the encryption method The app allows the users to store or retrieve their digital assets, to make transactions using bitcoins where the coins are placed in your cryptocurrency wallet. Bitcoin does not exist in any physical shape or form. Ease to use, fast and secure use it to make transactions.
The Wallet of the network can be divided into the five main groups of Web Wallet, Desktop Wallet, Mobile Wallet, Hardware Wallet, and Paper wallet it also may be referred to as hot, cold wallets, these don’t store the cryptocurrency. Here the wallet generates all the information and communicates with the blockchain.
Example:
ALICE and BOB
Alice wants to build a new bitcoin wallet to receive a payment from the bob this is the easier way to do that the use of cryptocurrency wallet program the Alice create the new program to generate multiple pairs of public and private keys along with their several blockchain addresses but it considers only one pair of key and that contains a single address.
First, the program calculates the pair of keys (ie) is
PRIVATE KEY
PUBLIC KEY
The public key is used to generate a new unique bitcoin this is the address where Alice nee to provide a bob
Then Bob sends bitcoin from a wallet to their Alice wallet. These coins never leave the blockchain; they just transfer the address from one another; this is safer for Alice to share her bitcoin address with others. The private key is used for signing, the accessible funds are even.
If Alice lost her computer or a smartphone she used these private keys to access her coins on any other device and she may use a different wallet.
If anyone gets an Alice private key they can easily steal her funds. Alice can use her private key to recover their public key in the blockchain. So Alice only needs to back up the wallet seat phrase. In another word the seat phrase works like a root it gives access to all keys and addresses here Alice wants it now it covers the basic address we let explore it in different types of cryptocurrency wallets.
Hot wallet VS Cold wallet:
Here the hot wallets are convenient for traders, these funds are quickly accessible and the wallets are much safer to store their bitcoins. It is used in day-to-day transactions.
Most of them use a physical medium to store the keys while using it offline and it is resistant to hackers this is called cold storage.
Types of Wallets:
1.Web Wallet
2.Desktop Wallet
3.Mobile Wallet
4.Hardware / Software Wallet
5.Paper Wallet
1.Web Wallet:
This web wallet allows users to interact with a blockchain so there is no need to install or download anything on their computers. These types of wallets are referred to as hot wallets.
ADVANTAGES:
- Fast and complete transaction
- Hold multiple cryptocurrencies
- Store a small amount of cryptocurrency.
2.Desktop Wallet:
This is the software wallet where Alice needs to download and execute locally on her machine. This is safer than the web wallet and this is the method of cold storage.
ADVANTAGES:
- Ease to use
- Third-party server no need to store the private keys.
3.Mobile Wallet:
It works like a desktop wallet but is designed specifically as a mobile app. It gives convenient access to funds and is a prominent example of a mobile cryptocurrency wallet.
The mobile wallet supports multiple cryptocurrencies, it is integrated with the decentralized finance exchange and it is also referred to as a hot wallet.
ADVANTAGES:
- More privacy
- It provides additional features
- Integrated with the DEFI(Decentralized Finance)
4.Hardware / Software Wallet:
This is less user-friendly when compared to the web and desktop wallets. It holds a large number of cryptocurrencies and they offer more control.
ADVANTAGES:
- It’s difficult to understand the access for beginners
5.Paper Wallet:
This is the piece of paper on which a blockchain address and its private key are physical keys that are printed out usually as QR code so Alice can generate and print a paper and send some funds. This is the cold storage of cryptocurrency. Here the paper wanted to present the numerous flaws and they use paper wallet is not suitable for sending funds.
ADVANTAGES:
- Private keys are not stored by a third party
IF CRYPTO WALLET IS NECESSITY:
According to this recent search of survey 2018, it shows a fabulous rise in the blockchain wallet users with 25 million in 2015 now the users in 2018 is 3.1 million users in the cryptocurrency wallet.
A cryptocurrency is decentralized digital money by using the method of blockchain technology. Crypto is used to buy some goods and services by using often called tokens, there are 5thousands different cryptocurrencies in circulation. To Access the goods or services you need to change the real currency into a cryptocurrency
