What Is A Blockchain Wallet?
If we have to pick the most distributed technology in recent years, then it has to be Blockchain. It started as the underlying technology for Bitcoin exchange, but over the years, Blockchain has made a mark for itself as the self-sustaining technology that aids other business processes like healthcare, medical, finance, education and others. But the focus of this article is not on how Blockchain is adding to the different business segments. We are highlighting how Blockchain is helpful in creating safe storage for cryptocurrencies. Yes, we are going to discuss Blockchain wallet.
What is a Blockchain wallet?
Till now, we are relying on the conventional banking system. But the fact of the matter is that despite many new changes and digitization, it is not infallible. Moreover, data vulnerability and double payment are some of the key issues which make the digital banking system lackadaisical. Moreover, dependence on third-party validation and appearance also jeopardizes the functioning of the transaction system. Blockchain wallet is the right solution for this.
In simple words, a Blockchain wallet is a cryptocurrency wallet that is used to manage different types of cryptocurrency. The objective of a Blockchain wallet is to ease the process of the transaction. Blockchain provides data security; since all the transactions are encrypted cryptographically, it becomes easier for you to exchange the data and information without worrying about the data breach and threat issues.
Well, when it comes to the front-end functioning of Blockchain wallet, then it is similar to any other payment platform that we use, like PayPal. You can find several companies that have ventured into this segment. Some of the common examples are Blockchain.info, Jaxx, Samurai, Bitcoin Paper Wallet and others.
Before you start using a Blockchain wallet, you also need to know about the public and private key.
Public key: It is like your email ID or bank account number that you share with others.
Private key: This is a top-secret one. You have to keep it with you. It is the same as a password to your email ID, and hence it must be kept safely.
Types of Blockchain Wallet:
The two main categorizations of Blockchain wallet:
1. Hot wallet- These are online wallets which are used for the exchange of money — for example, Coinbase and Blockchain.info.
2. Cold wallet- Unlike hot wallets, these are offline. They are not shared on the cloud, and one has to keep them securely. Its examples include Trezor and Ledger.
This was the basic information about Blockchain wallet. Based on your presence and ease of use, you can choose the right type. Blockchain wallet makes transactions easier and faster.
The development around Blockchain is drawing a lot of attention. As per Gartner, Blockchain is going to add to business development, and the amount would be approximately $3.1 trillion by 2030. This rising number indicates the growing acceptance of Blockchain technology, which will also lead to a rise in the demand for Blockchain professionals. If you are also willing to make a career as a Blockchain developer, connect with the Blockchain Council today.