08 Feb 2019

    Breaking Down Blockchain and Cryptocurrency Wallet Development


    Unless you are living under a rock, you must have heard about bitcoins. This cryptocurrency has become the most recognized and effective resource for investments. In the last five years, cryptocurrency has grown by more than 560 times. Thus, it is obvious why many world-famous companies are considering this cryptocurrency as a means of investment and payment.

    What is Cryptocurrency Wallet Development?

    A cryptocurrency or blockchain wallet development is a software program that stores public and private keys and interrelates with various blockchain to enable users to send and receive digital currency and monitor their balance. So, if you want to use Bitcoin or any other cryptocurrency, you need to have a digital wallet. Many cryptocurrencies like bitcoin, litecoin, monero, etc. have their cryptocurrency wallet, and there are many cryptocurrency wallet development companies that use the third-party wallet for transactions.

    How Does Cryptocurrency Wallet Operate?

    Many use cryptocurrency wallets, but there is considerable misunderstanding about how it works. It is different from traditional wallets that store real money. The mobile cryptocurrency wallet does not save any currency it does not exist anywhere in physical form and cannot be stored in any single location. Only records of transactions that are stored in blockchain are available. Crypto wallet development can interface with various blockchain so users can monitor their balance, conduct other operations, and send money.

    When a person sends you a cryptocurrency, they are signing off ownership of the coins to your wallet’s address. To be able to use this cryptocurrency, the private key stored in your wallet should match the public address that is allocated to the currency. If private and public key match, then the balance in your account will increase and the sender’s balance will decrease accordingly.

    What Are Different Types of Cryptocurrency Wallets?

    There are various types of wallet that provide different ways to access and store your digital currency. These wallets can be divided into three distinct categories – hardware, software, and paper. Software wallets can be a desktop, online, or mobile.

    1. Desktop

    Wallets are installed on a laptop or a PC, and they are only accessible from the single laptop where it is downloaded. Desktop wallets provide the highest levels of security, and if your computer is hacked, then there is a probability that you may lose all your funds.

    2. Online

    Online wallet runs on the cloud and is obtainable from any computing device in any location. They are convenient to access and store your private keys online. The wallets are controlled by a third party which makes them more vulnerable to theft and hacking attacks.

    3. Mobile

    Mobile wallets run on your phone, and they are useful because they can be used anywhere including retail stores. Mobile wallets are much more straightforward and smaller than desktop wallets because of the limited space available on mobile.

    4. Hardware

    Hardware wallets differ from software wallets as they store a user’s private keys on a device like USB. Although the transactions are online in hardware wallet, they can be stored offline which makes it more secure.

    5. Paper

    Paper wallets provide a high level of security and are easy to use. The term paper wallet may refer to printout or physical copy of your private and public keys, and it also implies that it is a piece of software that is used to generate a pair of keys that are printed securely.

    Which Cryptocurrency Wallet is the Best?

    There is an ever-growing list of cryptocurrency wallet development companies. So, before picking a wallet, you should consider the following options.

    • Do you plan to use multiple currencies or single currency?

    • Do you need a wallet for everyday sales or to hold digital currency for an investment?

    • Do you require access to digital wallet from anywhere or only from home?

    • Take some time to assess your requirement and later choose the most suitable wallet for you.

    Post Author

    Deep Shah
    Deep Shah

    Explore Deep's insightful blog posts that help businesses stay ahead of the curve, explore new possibilities, and unlock the full potential of blockchain technology

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