A decentralized wallet means that the holder of the keys will be accorded access to the crypto wallet. It allows the holder to use the keys to send or receive cryptocurrency anywhere on the planet. Some people regard a decentralized wallet to be anonymous, but it is not. It is pseudonymous.
The global pandemic of coronavirus has increased people’s interest in cryptocurrencies globally. While various financial sectors were crumbling, this was a sector that was still providing returns steadily. Moreover, with people staying at home for months together and little signs of respite in the coming days, people have more time now to research on various digital coins and decide where to invest.
This phenomenon has provided a lucrative opportunity to launch a cryptocurrency business or expand an existing business — one of the preferred options is decentralized crypto wallet development.
No matter what type of platform you operate — be it a crypto exchange, crypto point-of-sale system, or a crypto payment remittance platform — you just cannot do without a crypto wallet. It is the most basic tool when your customers want to store and transfer crypto assets. You need to begin your search for a trustworthy company that can do decentralized crypto wallet development for you, with all the necessary features you may want.
What are digital currency wallets?
If you think a cryptocurrency wallet resembles a traditional leather wallet, it doesn’t. It is fine to draw a similarity between a digital coin wallet and a regular wallet to help a layperson understand it. But, in real terms, a cryptocurrency wallet is not anything where you can store physical currencies. It is just system software where the public and private keys are stored to enable you to access your records (and crypto assets) on a digital ledger.
Functioning of cryptocurrency wallets
Understanding the functioning of digital coin wallets will help you precisely know how they work. With blockchain technology underneath the wallet, it operates on the basis of two keys — a public key and a private key.
You use your public key as your wallet address and share it with other people. When anyone wants to transfer money to you, they will use your public key to send funds. You, on the other hand, will use the private key to unlock the crypto wallet and gain access to funds.
You need to keep your private key safe. Make sure no one has access to these keys for anyone with access to private keys will be the owner of the crypto assets. Two wallet addresses are never the same and there is absolutely no chance of a transfer of funds reaching different people that you intend.
How sure you can be about security of your crypto wallet
To make your users feel secure while using your wallet, you need to have the optimal security features integrated into it. At the same time, you should also advise users to avoid keeping all their coins in a single crypto wallet. A top-of-the-line decentralized crypto wallet development company will be able to equip your wallet with all the necessary security features.
Some essential features that your wallet needs to have are 12-word mnemonic passphrase, biometric authentication, multi-signature support, two-factor authentication, password-protected access, and optimal session logout. There are more, but these are the features you simply cannot do without.
The encryption on a crypto wallet is impregnable for now and quantum computing is still far away. There is no way for a thief to find a private key if you have destroyed it. If you compare it with the regular world, even the world’s safest safe can be breached, but not the encryption on a crypto wallet.