Usually, we consider wallets to keep our money but can you think about a blockchain wallet? Have you ever thought about using this wallet to keep your money? Do you think that digital wallets are not secured?
If you still have doubts in digital wallets you need to rethink…
Today, blockchain wallet have considered as a safest digital wallet to keep currencies. Though, this is true that this wallet have confined to save cryptocurrencies, but! it can happen that soon these wallets would be able to hold other currencies.
Actually! you would get mesmerized when you will see how secure is blockchain trail, and the advancements this technology is bringing. Though, the main purpose to assimilate this blog is how blockchain wallets work. So, take a look…
What is blockchain Wallet?
Surely you would have heard about cryptocurrency wallets, where you can store a diverse range of crypto coins like Bitcoin, Ethereum, Dash, Ripple and more. These crypto saving instruments both in form of digital software and device are blockchain wallets, that enable people to exchange funds easily and keep a tight hold of security provisions, therefore no one can intrude and take you money away from you.
The transaction on these systems stays under stringent security protocols and inhibits any kind of tampering and theft. The helping hands of cryptography technique are boosting this concept. Consequently, each and every transaction in this wallets gets secured by cryptographic hash. And the most exciting aspect is ease of accessibility, as you can get in to these wallets through your mobile phone, and web devices. In this wallets, privacy and identity of each user get maintained at full fly.
This signifies that there is a new future waiting to have reveled. If we could even able to secure not even cryptocurrency but, fiat and other cash then surely it would be very exciting. These wallets have all the feature that one need to secure money, from secure transfers & exchanges of funds and many more.
After knowing this, there would be a flood of question in your mind, such and why should I use these wallets? How does it work? and so on. Don’t fret! let’s take a look at these aspects.
How Does Blockchain Wallet Work?
To understand how do these wallets work, you need to learn from scratch. So, let’s begin with private and public keys, and how these are connected to blockchain wallet.
Well! every time you create a blockchain wallet, you get a public key and private key which establish an adhesive connection with your wallet. Let’s understand it with an example of email. Every time you send or receive an email, the email address is essential that you use as an essential parameter to exchanging emails.
Though, when you share your email address this doesn’t come up with a risk that someone is able to access your account and send & receive emails via your account. To do that your account’s password is also essential. Similarly, blockchain works on this principle by using public and private key collectively. In this approach, a public key works the same as your email address does, it means you can share it with anyone.
Above all, when you generate a wallet account, you get both of the keys, and you can share the public key to receive funds from anyone. The biggest secret reserves for the private key only. This is the most secret thing that you need to hide from everyone, it is same as your email password. Neither it should be hacked or not you need to tell it to someone. This key is very important, as you utilize this for spending your funds. So,! keep It As A Secret!..
The Warning: if someone gets succeed in accessing your private key, then probably you may end up with account compromising and losing all your cryptocurrencies. So, don’t share it with anyone!.
Blockcahin Wallet Types
Now you have got to know about blockchain wallets, though you need to learn many other aspects. The first one is type of wallets based on private key. Yes! blockchain wallets have classified in two categories based on private keys: cold wallets and hot wallets.
Hot Wallets: These are normal wallets that carry day-to-day transactions. Being faster wallet, these wallets are user-friendly also. These rare online wallets, every transaction takes place online. And! for faster transaction, every private key gets saved on the cloud. You can access the hot wallets through your mobile device or desktop, though it involves risk of theft if hacked.
Cold Wallets: These are similar to your vault, and keep your funds under higher-level security surveillance. Cold wallets are offline, and they are not managed in the cloud instead private keys get maintained offline to ensure higher security. Every transaction gets signed offline and then disclosed online.
Why To Use A Blockchain Wallet?
Our traditional banking system is stuffed with various problems, especially in doing transactions. And! most noteworthy, transaction process is often slow and requires various hefty sum as a fee.
Another, every transaction need to pass through an intermediary authority like a bank. it means there is always a central point where failure can arise at any point in time. Issues like keeping track of balances and account, data jeopardy and manipulation and corruption of data, etc, are biggest threat. Though, Blockchain is capable of eliminating all of these issues. It means your money will be safe and you don’t need to worry about any kind of problem and threat.
Surely, now you would have understood how effective and fruitful are blockchain wallets. And! you can expect soon blockchain wallets would be an effective tool to save your funds, as mobile app development companies are employing this technology to create highly secure digital wallets. At Techugo, we are also fusing this technology in applications to offers users with highly advanced apps. To get your application build and fused with Blockchain Technology, reach us.