In the blockchain space, cryptocurrencies have gained traction and become a buzzword. Even though this concept has been around for a long time, it has seen potential growth. Ethereum, Bitcoin, Litecoin, Ripple, and others are examples.
“According to a recent report, there are over 8000 digital, virtual, or cryptocurrencies available in the market today.” (2021). Furthermore, the global crypto market value is expect to rise from $1.5 trillion in 2021 to $2.3 trillion shortly.”
This blog is for those who want to integrate the crypto wallet into their businesses or launch their crypto wallet. Continue reading to learn more about digital wallet app development.
Cryptocurrency Wallet – Explained
Have you heard anything about this? If not, let’s take a quick look at what it’s all about in this section. A cryptocurrency wallet is design and develope to store, manage, and transact cryptocurrencies securely and more safely, ideally at lightning speed. Users can view their previous transactions, allowing them to track their crypto wallets.
How does A Cryptocurrency Wallet work?
So far, you have a clear understanding of crypto wallets. It’s now time to learn how to use it. To understand the functionality, you must first understand private and public keys, as these two terms are critical.
A private key is simply a password for your crypto wallet, as this must be kept confidential. In layperson’s terms, it’s similar to a passkey or password to your debit card for your bank account.
A public key represents the crypto wallet address, similar to your bank account’s account number. This could be known to conduct business.
On the other hand, cryptocurrency, digital currency, or virtual currency is not physically store in the wallet. Instead, it will be save in the blockchain, a decentralize ledger where the data will be safely store. Users with the public key could send and receive cryptocurrencies of their choice. They would be prompted to enter the private key for authentication while transacting. Once complete, the transaction will be completed successfully.
Let’s Look At The Varied Types Of Crypto Wallets
The crypto wallet can be divide into two types: hot wallets and cold wallets. The distinction between these is easily discernible.
- Hot Wallets
Hot wallets, also known as hot storage, are internet-connect devices. Because they appear to be less secure, they are vulnerable to hacking. This wallet provides the option of storing private keys online.
The following is the assortment of hot wallets. Catch a glimpse of a brief introduction.
Desktop Wallet – One of the well-known wallets can be access via desktop or laptop computer. When the desktop is infect with viruses or malicious attacks, desktop wallets are at greater risk. Desktop wallets are classified into full-node wallets and lightweight/thin wallets.
Mobile Wallet – This type of wallet can be install on a mobile device, allowing for instant cryptocurrency transactions because the coins are store on the account. As the convenience of QR scanning is available, this appears to be the most straightforward method of making transactions.
Web Wallet – It can be access using a browser such as Google Chrome, Safari, or others. Because sensitive information, such as private keys, is store in the cloud, hacking is risky.
- Cold Wallets
Cold wallets, also known as hardware wallets or paper wallets, are devices that store cryptocurrencies offline. These are more secure than hot wallets because significant cryptos can be stored and manage. It specifically refers to the printed copy containing information such as public and private keys.
Security Features To Consider During Cryptocurrency Wallet Development
The following are the critical security features that must be prioritize during cryptocurrency wallet development. This will ensure that the trading process is carried out flawlessly and securely.
- Automated Session Logout
This is a must-have feature that will ensure security. Consider the case of a wallet left open for an extended period. The page’s session will be automatically log out, and users will need to enter their credentials again to log in and continue with transactions.
- Denial Of Duplicate Payments
Duplicate payments will be detect and denied for security reasons and to avoid chargebacks. This will significantly boost user confidence.
- Multi-Factor Authentication
Two-factor or multi-factor authentication will add an extra layer of security to the crypto wallet. Users must provide two or more authentication factors when accessing the crypto wallet.
- Upgraded Security
Developing a white-label cryptocurrency wallet with upgraded security significantly improves the crypto wallet’s security level. On the other hand, private keys are replace by secret mathematical algorithms. As a result, the private keys are not accessible to anyone other than the users.
Phases Involved In Multi-Cryptocurrency Wallet Development
The phases involved in the development of a multi-cryptocurrency wallet are as follows. Before we start a business and integrate a crypto wallet into it, let’s go through these stages to understand what this is all about.
- The first stage is planning, as you must decide how your crypto wallet will look. This corresponds to features and capabilities. As a result, you must consider which components must be include, without fail, in security features.
- Before proceeding with the implementation, determine how much you will be charge for using a reputable company’s cryptocurrency wallet development services. The most important aspect is selecting a suitable company to meet your business expectations.
- Continue with the development stages, where the user interface will be frame to ensure smooth operation. Most importantly, secure transactions must be guarantee. Following that, the testing stage must be prioritize because the crypto wallet developed must be bug-free.
- The final stage is integrating the designed and developed crypto wallet into your company. During downtime, you could contact the cryptocurrency wallet development company for technical support and maintenance.
Conclusion
To summarize the main point of this blog, developing a crypto wallet is not a difficult task in the blockchain era. However, white-label cryptocurrency wallet development would simplify the process because it offers the benefits of instant launch at a lower cost than developing the crypto wallet from scratch.
