Web3 Active Entry: Crypto Wallet

Infrastructure is the bottom layer of innovation, and upper-layer applications are necessary to grow and test the feasibility of the underlying technology based on the underlying technology. At present, in the encryption market, the number of decentralized applications is considerable and growing, and different subdivisions have been formed. road. Among them, we need to recognize and understand an important application that will serve as an entry ticket to the blockchain cryptocurrency market, and an important entry point for Web3 activities and accumulation of user traffic, that is, the encrypted wallet.

Web3 Active Entry: Crypto Wallet

A must for the crypto market

After electronic payments became a popular habit, people used wallets less and less frequently. In the crypto market, the opposite is true. Whether you are participating in market activities or keeping your own assets, crypto wallets are essential. As a digital asset circulation carrier and a key medium to reach users, the more active the market is, the more its usage rate will increase.

So what exactly is an encrypted wallet? Operating in a decentralized world, encrypted wallets are completely different from centralized storage methods. They are virtual, user-controllable, and completely independent of centralized settlement agencies. Through encrypted wallets, we can independently keep and control digital assets, and truly experience the convenience and sovereignty of encrypted wallets.

Encrypted wallet mainly includes wallet account, public key account, blockchain network, keystore, password, transaction, application, sending and other components, among which the three most important are public key, private key and mnemonic. The public key represents that the assets are stored on a certain subject. The simple understanding is that we have applied for a wallet application of a certain platform, and an account address will be allocated accordingly. We can apply for different accounts on different networks, such as Bitcoin, Ethereum, Terra, etc. For example, small A and small B want to transfer money, and small B can send the assets to small A’s public key account, which is public. Although it seems simple, in terms of security assurance, the public key itself includes public key cryptography, digital certificates and public key security policies.

Accompanying the public key is the private key. It is easy to understand that the private key is kept by itself, the password for identity authentication, and the public key account to form a pair of key pairs. The two complement each other. If the data is encrypted with the public key, it must be Decrypting with the private key, if encrypting with the private key, must decrypt with the public key, both are equally important. To obtain a wallet address, you need to generate the private key first, then derive the public key, and finally generate the address with a hash algorithm. The private key is the beginning of everything. It is the symbol of opening the treasure chest and owning the assets of our own account. Through the private key, we can sign and send transactions and help the wallet to recover. Without it, there is no asset. Another key component mnemonic is the backup of the private key, which is relatively easier to remember. As a novice, you’d better find a small notebook to transcribe it, it is very important.

Web3 Active Entry: Crypto Wallet

The relationship between crypto wallets and Web3

Before the summer of DeFi, there were not so many people using wallets, people were more inclined to put their assets on non-custodial centralized exchanges, and encrypted wallets were more of a choice for users with a large amount of assets. With the increase in trading activities, that is, the popularity of DeFi liquidity mining, asset conversion and activity scenarios are more decentralized. This requires the support of decentralized encrypted wallets, and its weight in the hearts of users has increased significantly.

Speaking of this, we have not perceived its status or importance in Web3. Users’ direct feeling is that encrypted wallets can only be used as a tool for asset storage and circulation. How to understand its relationship with Web3? First of all, we should realize that the layout of encrypted wallets is the starting point for building a value network, an important traffic portal for infrastructure in the blockchain era, and the first step to participate in digital asset transactions and related asset activities.

With the emergence of more applications and the increase in the size of the encryption market, encrypted wallets will gradually become a management platform that includes a variety of digital assets. From a single storage and protection asset, more service products, such as wallet wealth management products, manageable One-stop aggregated asset management platforms such as ID documents, life payment, commemorative cards, etc., allow users to further experience the advantages of decentralized wallets, which will become important product forms and presentation methods in Web3. It can be said that the more elements derived from encrypted wallets, the more favorable it is to promote the process of Web3. It can be both a container of assets on our chain, and a collection of identities when we act in the Web 3.0 world. A large number of daily actions will be related to blockchain wallets, and users can even use encrypted wallets to browse Web3 directly.

Introduce several encrypted wallets

According to different classification standards, there are many types of encrypted wallets. According to whether it is connected to the Internet or not, it is divided into hot wallets and cold wallets. Hot wallets are online wallets, and wallets that access their own private keys through the Internet. Because there are more dangerous elements facing the Internet, it is best to set up a secondary authentication method to ensure your own private key. Asset security. Cold wallets are stored in places such as hard disks, books, etc. that do not require or cannot be reached by the network, and the operation process is inefficient. According to the classification of the exclusive public chain, it is divided into Bitcoin wallet, Ethereum wallet, Litecoin wallet, etc., and provides more wallet services exclusive to the public chain.

At present, more encrypted wallet development focuses on the goal of supporting more currencies, that is, full-currency wallets, which can support all types of digital assets and token assets on the blockchain chain, but due to the issuance of each chain There are some discrepancies in the standards, and it is difficult to support multiple currencies, so most of them are still in the trial and exploration stage. Below we briefly introduce several encrypted wallets.

MetaMesk is a software encryption wallet that interacts with the Ethereum blockchain. It is also a multi-chain soft wallet and currently has a huge number of users. According to ConsenSys, the parent company of MetaMask, the number of unique addresses (MAUs) interacting with blockchain smart contracts exceeded 30 million in January this year, an increase of 42% in four months. The prominent feature of MetaMask is that most Web3 applications can be logged in with this wallet, and it has become an important carrier in the Web3 ecosystem by integrating DID technology. In terms of security, it is different from the mode in which the keys are stored in the central server, which isolates the storage environment from the site environment. In terms of connectivity, the interface between Ethereum and multiple DeFi platforms is opened, that is, it is possible to participate in the construction without synchronizing complete nodes.

Web3 Active Entry: Crypto Wallet

Coin98 is a DeFi cross-chain liquidity infrastructure with a full set of products for one-stop browsing of DeFi platforms, of which Coin98 Wallet is a non-custodial multi-chain wallet and gateway. It allows users to store, trade, and manage crypto-assets, including Ethereum, Binance Smart Chain, Solana, Polygon, Avalanche, and Terra on mobile (iOS and android) and Chrome extensions. The wallet has more than 200,000 users after only one year of launch, and the market prospect is promising.

CoinbaseWallet is a beginner-friendly secure wallet with low transaction fees and ease of use. With CoinbaseWallet, not just as a tool to access cryptocurrencies, you can use it as a foothold to explore the decentralized web. With CoinbaseWallet, you can manage ETH and all your ECR-20 currencies, support BTC, BCH and LTC, receive airdrops and cryptocurrencies, buy and store cryptocurrencies, and trade with anyone anywhere with no fees , CoinbaseWallet is redefining what users can expect from a crypto wallet. 

In conclusion, as an important entry point for Web3 activities, the market expectations for crypto wallets are very impressive. Data in PayPal’s fourth quarter 2021 earnings report showed a 40% increase in first-time crypto wallet users, and predicted that crypto services will make greater progress and double in 2022. This year’s frequent market moves have confirmed this. Recently, Robinhood officially announced the launch of a cryptocurrency wallet at the Bitcoin 2022 conference in Miami, and Opera launched an Internet browser and an encrypted wallet with built-in Web3 integration. The related Phantom won $109 million in equity, WalletConnect completed the A round of 11 million US dollars and other good news of financing continued to appear, a thriving trend.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/web3-active-entry-crypto-wallet/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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