Crypto Academy Chapter 4: Blockchain Wallet – by @sapwood

designieplay (68)in SteemitCryptoAcademy • 4 years ago

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Hi everyone, welcome to this week’s awesome chapter. In this homework post, I will be solving some of the questions asked when dealing with blockchain wallets and also giving my opinion and knowledge about blockchain wallets and what they are all about. I have to say, the chapter 4 topic by the Steemit crypto professor @sapwood was a really interesting topic, explaining all about blockchain wallets.

A blockchain wallet is a term that isn’t new to anyone who part of blockchain and cryptocurrency… in fact, a wallet is one of the most important aspects of blockchain and cryptocurrency. In this post, I will be sharing my knowledge and giving my opinion about blockchain wallets and also showing some examples of a wallet and also some important aspects of blockchain wallets. But before go deep into the main topic of this post, I will like to briefly explain what blockchain wallets are and what they are all about. This is to lay the foundation for the main topics I will be talking about in this post.

So What is a Blockchain Wallet and What is it all About?

A blockchain wallet is one of the most important aspects of blockchain and cryptocurrency. It is a term that isn’t new to anyone that is part of the cryptocurrency space. Like an everyday wallet that we use to keep money, a blockchain or cryptocurrency wallet have a similar purpose as it is used to store cryptocurrency – assets, coins and tokens. A blockchain wallet operates digitally and serves as a gateway that connects to the blockchain in order to access your cryptocurrency assets. In most cases, what the blockchain wallet does is to provide the gateway to perform transactions on the blockchain network and also to access your cryptocurrency that is stored on the blockchain network using your keys. A blockchain wallet that gives you access to your keys means that you have full control of your cryptocurrency assets. Whenever a blockchain wallet is mentioned, there are many types that come to mind and I will try to briefly touch on the main types of blockchain wallets…

At the moment, there are mainly three categories of blockchain wallets that are popular and heavily used in the cryptocurrency space. There are; software wallets, hardware wallets and paper wallets.

Software Wallets:

Like the name software, it means it is a written program specifically for interacting and transacting with the blockchain network and storing cryptocurrency assets. Depending on the type of software wallets, it can be a multichain wallet which means that it can interact with multiple blockchain networks and also multiple cryptocurrency assets can be stored on it. Software wallets are the most popular and common types of blockchain wallets because of most of it are easy and free to use. The different types of software wallets are web wallets, mobile wallets and desktop wallets. These types of wallets are not as secure as hardware wallets.

Web wallets:
Web wallets are wallets that live online on servers. These type of wallets are less secure compared to the other type of wallets. However, they are the most common and most easily accessible because it can be accessed using any web browser on any device. This can be beneficial because even if you don’t have access to your device, you can access your funds anywhere at anytime using any available device (this is not advisable) that has a web browser and can connect to the internet and you can transact with the blockchain network.
Mobile and desktop wallets:
Mobile and desktop wallets are very similar type of wallets. Mobile wallet run on smartphones and mobile devices while desktop wallets run on computers. The type of wallets are the most secure type of wallet under the software wallet category mainly because they are not on any server and runs on your device. Depending on the type of software wallets, they are becoming more and more secure, making them a secure way to store cryptocurrencies as far as you own your keys and keep them safe.

Hardware wallets

In contrast with the software wallets, a hardware wallet is a physical wallet but made specifically to interact and transact with a blockchain network. Much like software wallets, hardware wallets can also be multichain and can interact with multiple blockchain networks and also store multiple cryptocurrencies. This isn’t as popular and common as software wallets because of the price to purchase a hardware wallet. Ledger and Trezor are two popular hardware wallets. They are also the most secure type of wallets to store cryptocurrencies.

Paper Wallets

Like the name paper wallet, a paper wallet is simply means a blockchain wallet that is printed on a paper. A lot of blockchain wallets come with the capability to print out a paper wallet. What this means is that your keys and are printed on paper, making them very secure because they do not connect to the internet. You can transact with the blockchain network with your keys. One of the main benefits of papar wallets is that it does not connect to the internet and only you have access to your cryptocurrency. The only downside to this type of wallets is that anyone who comes in contact with your paper wallet can see your keys but once the paper wallets are kept securely, it is one of the safest and one of the most secure blockchain wallets.

Multichain Wallets

Much like I mentioned above already, a multichain wallet can be either software wallet or hardware wallet. In fact, a lot of the popular blockchain wallets at the moments are multichain wallets, meaning they can store and hold multiple cryptocurrencies. For multichain wallets, there are two categories namely; custodial and non-custodial multichain wallets.

Custodial wallets:
These are wallets that are mainly controlled by third party… These type of wallets are mainly found on cryptocurrency exchange platforms or other third party platforms.
Non-custodial wallets:
These are the exact opposite of custodial wallets because they are not controlled by any third party or exchanges. These type of wallets give you your keys and you have complete control of your keys and cryptocurrencies. Depending on the type of Non-custodial wallets, they can provide you with the individual keys or seed phrase that stores all your keys. This makes non-custodial wallets the most secure type of wallets to store and hold your cryptocurrencies.

Exodus Wallet – A Multichain Non-custodial wallet

Exodus wallet is a clear example of a multichain Non-custodial software wallet that has proven to be a secure wallet to store multiple cryptocurrencies. Exodus wallet is available as a mobile or desktop wallet with a stunning and clean user interface and easy to use as well. In this post, I will be focusing only on the exodus mobile wallet.

Number of coins supported by exodus wallet
At the moment, exodus wallet supports over 100+ Cryptocurrency Assets.
How to back up the Seed key or Mnemonic key on exodus wallet
To back up your seed key or mnemonic key on exodus wallet, first launch your exodus mobile wallet app. Next click on the profile icon on the bottom right. Next click on security and you will find the backup option. Click on backup and you will see a screen that tells you to view your secret phrase which is the same as seed phrase. Click on “View Secret Phrase” to view your seed phrase… press and hold to reveal the seed phrase. Below are the screenshots.
How to re-import the existing multichain wallet on fresh exodus wallet installation
To restore your existing exodus wallet on a fresh exodus wallet installation, download and install the wallet on the mobile device of your choice. Next, launch the exodus wallet app. Next, you will see two buttons that says “get started” and “I already have a wallet”. Next, click on “I already have a wallet”. Next, you will see a screen that ask you to choose whether to scan QR code or Type Secret Phrase (Seed Phrase). Choose type secret phrase. Next, you will see numbered input spaces to type in your seed phrase in the correct numbered order (this is very important). The inputs are 1-12 but broken down into 3 sections of 1-4, 5-8 and 9-12. Once you are done typing in your seed phrase correctly, click on restore button that will appear.

How to add/import a new coin in a multichain wallet using the private key of the coin in Trust Wallet
To add/import a new coin using the private key of the coin in Trust Wallet, Launch the trust wallet app. Click on settings icon. Next click on Wallets button. Next click on the (+) button at the top right of the screen. Next, click I already have a wallet. Next, you will see a list of coins you available to add using private key. Click on the coin of your choice. Select Private Key option. Next, paste in your private key and import.

How to import a multichain wallet of a different service using the seed key in Trust Wallet
To import a multichain wallet of a different service using the seed key in Trust Wallet, Launch the trust wallet app and click on settings icon. Next click on Wallets button. Next click on the (+) button at the top right of the screen. Next, click I already have a wallet. Next, click on Multi-Coin Wallet. Next, paste or input your seed phrase and import.