Key Things You Must Keep in Mind While Developing Blockchain Wallet

With the advent of cryptocurrencies, the world is opening up to new possibilities in online, virtual transactions. Today, Bitcoins, Ethereum, and altcoins are gaining popularity rapidly and as a result, we witness growing demand for blockchain wallets.

Here we are going to discuss ins and outs of blockchain wallets from the perspective of a blockchain app development services provider. But before moving forward, we will have an introduction to this concept. 

What is Blockchain Wallet? 

Similar to wallets or vaults for storing fiat money, a blockchain wallet is useful for storing cryptocurrencies. Users can store and manage different cryptocurrencies in a secure way using a blockchain wallet. 

It also offers ease of exchanging funds online across secure and cryptographically signed transactions. What’s more, all the functionalities of a blockchain wallet work seamlessly on the Internet. 

Blockchain wallets can be accessed through the web with ease. Also known as crypto wallets, these wallets could show the account balance in Bitcoins and other cryptocurrencies, ICO tokens, or other digital assets. Bitcoin wallets are like a bank vault for crypto assets. 

Security and transparency are the biggest characteristics of blockchain. Both these characteristics are reflected in the blockchain wallet. Blockchain app development services can ensure the highest level of security while transferring funds. 

A blockchain wallet simplifies the process of cryptocurrency transactions. Users can leverage all the benefits of blockchain technology like that of other technological advancements in digital payment solutions. 

Electrum, Mycelium, Blockchain.info, and Bitcoin paper wallet are some of the noteworthy examples of blockchain wallets.

How Does Blockchain Wallet Work? 

Users need to download a blockchain wallet. After downloading, it is necessary to set up the wallet in which the wallet generates a private key. 

Along with this, users can get a public key for their wallets. Here, the private key is of the utmost importance. No user can risk losing it. It is not advisable to disclose the private key anywhere. If one loses the private key, then all the cryptocurrencies in that particular wallet are lost.  

The public key is also known as the blockchain wallet address. It is also a crucial element to operate blockchain wallets. Wallet users can share the public key with people for transferring crypto-assets. 

When you want to send cryptocurrencies to the other person’s crypto wallet, you need to include a private key along with the blockchain wallet address (public key) of the receiver. In a way, you can transfer the ownership of your crypto assets. 

In this transfer of ownership, the private key of the sender’s wallet must match perfectly with the receiver’s wallet address or public key. 

Here, every transaction remains completely encrypted irrespective of the type of wallet. Once the transaction is done, the wallets of the involved parties reflect changes. Let’s go through the types of blockchain wallets.

Originally Source: Developing Blockchain Wallet