Crypto Academy Week 3 Homework Post for @sapwood: Blockchain Wallet Chapter 3
The first thing that comes to mind is how to keep our assets safe. Wherever we put our assets will be safe. Which wallet is the best for keeping our assets. As a small investor like me, I am concerned about protecting my assets. About a month ago I was doing research and looking for the best and most reliable wallet. Trying to find out about the different kind of wallets. We all have to research ourselves to be sure which is best for us. Then with Professor @sapwood’s lesson I clear about Wallets. It is important for all of us to have knowledge about blockchain wallets. Since we are all on blockchain platforms.
Blockchain Wallet:
A blockchain wallet is a digital wallet that keeps and manages user digital assets. Blockchain wallets are provided through blockchain.
There are two types of blockchain wallets. One is Software Wallet and the other is Hardware Wallet. Basically, the purpose of two wallets is to store a users assets. But there are some major differences between software wallets and hardware wallets. I will discuss about that.
Software Wallet:
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The software wallet is basically connected online all the time. It is useless without internet. Funds in the wallet can only be moved or exchanged or viewed when it is connected to the Internet. When in the software wallet, you create a wallet, which means an address will be created in your wallet. Which represents your id, with your id you can receive crypto.
There are many software wallets out there. Just as there is a blockchain wallet for Bitcoin, there is also a Myetherwallet for ETH which is an Ethereum based wallet. All software wallets are easy to use for the user. Much more convenient. Software Wallet There are many wallets suitable for computers and your smartphone.
But this wallet remains a security risk. There can be introduced to your computer which runs on software wallet, can be Potential hacks and loss of your cryptocurrency.
Hardware Wallet:
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These wallets are the best for security. If you are a big investor, I would definitely suggest you to go for hardware wallet. A hardware wallet is a physical device. Which stores your wallet's private key. And it protects you from hackers when you access your wallet. These wallet is by far the safest way to store your digital currency. Hardware Wallet allows you to send and receive your cryptocurrency.
The hardware wallet stores your private keys. The keys are much longer. Since it is a blockchain based wallet, cryptocurrencies are also stored in a blockchain that you can access with a hardware wallet. Since these wallets are offline based wallets, its main purpose is to keep your private keys away from the internet. So these wallets are more secure from hackers. Since it is an offline based wallet. It allows you to sign blockchain and complete transactions.
Hardware wallet is the best wallet available right now. There are various benefits of hardware wallet.
But I have been using the software wallet ever since I was on the blockchain. Since I am not such a professional trader or investor. There are many kind of software wallet like, Trustwallet, TronLink pro, Blockchain.com wallet, coinbase and many more. I don't have any experience about Hardware wallet so far.
If It's coming up about security, Then hardware wallet is the best. This is best for security. So I would say if you think about security then hardware wallet is for you.
What are the important points to consider when you deal with an Exchange (centralized) Wallet & Decentralized wallet. How do you secure/restore both types?
In centralized Exchange wallet, a third party or middleman helps to conduct a transaction. If we lose our account password or backup key in centralized wallet, it is possible to recover it. We can bring them back by contacting the support team or simply with a forget password or recovery account.
But in Decentralized wallet, We will only get back our lost wallet if we have Mnemonic keys. No one needs permission to login to decentralized wallets. The owner has the Mnemonic phrase, and can easily login by entering it sequentially. There is no need for a middleman or a third party. Anyone with mnemonic keys can enter the wallet.
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Give an example of a Web 3.0 wallet and what are the distinct uses of a web 3.0 wallet? Have you ever used any Web 3.0 crypto Wallet? Examples?
Take a look at this table. Here is the difference between web 1.0, web 2.0 and web 3.0.
Web 3.0 wallets are usually used for use a currency that connect to a certain platform. In below there are some web 3.0 wallet.
Metamask: Metamask is a software wallet based on the ETH blockchain. This is a Web 3.0 Wallet.
TrustWallet : Trust Wallet also a a crypto wallet based on Ethereum and ERC20/ERC223 tokens.
There are huge usecases in web 3.0 wallets. It's easy to use and also we can get full control of our wallet. One of the advantages of this is that with the wallet we can connect with many other different chains.
Thank you for attending the lecture in Steemit-Crypto-Academy & doing the homework task-3.
Yes, it depends on your priority and requirement.
If security is the predominent criteria for you and you are whale/orcas who deals with large amount of crypto, then Hardware wallet is the best option.
If you deal with less amount of crypto, a hardware wallet may not be economical. Further from usability point of view, software wallets are convenient and easy for the general users.
Semantic web and Blockchain are the best match to usher the era of Web 3.0. Further with Web 3.0 wallets, seamless integration with dApps, interoperability, etc are possible. DeFi use case ideally requires a web 3.0 wallet.
Matamask is definitely one of the popular Web 3.0 wallet. I was expecting a few relevant screenshots and explanation on your web 3.0 experience of any wallet that you use(e.g. How do you interact with a dApp using Metamask or Trust Wallet or TronLink or any other wallet of your choice).
Thank you.
Homework Task -3 accomplished successfully.
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