What is Blockchain Wallet?
A Blockchain
(or cryptocurrency) wallet is a software program that enables users to buy,
sell, and monitor balance for their digital currency (or assets). If you are
involved in the exchange of Bitcoin, Ethereum, or other cryptocurrencies, then
you must be using a Blockchain wallet of any type (different wallet types
discussed later).
Unlike
traditional pocket wallets, Blockchain wallets do not save cryptocurrencies.
They keep a record of all transactions (sell, buy, exchange) related to the
currency and store them on Blockchain.
How does it work?
A
cryptocurrency wallet stores private and public keys for a transaction. The
wallet interacts with multiple Blockchains to validate a transaction, enabling
users to purchase or sell one or multiple cryptocurrencies. But, what exactly
happens in the background that makes a safe, cryptocurrency transaction
possible? Let’s understand it with an example.
· Before
we move on to how cryptocurrency wallets work, let’s understand the concept of
public and private keys that are stored on Blockchain for a transaction. These
keys are non-identical pairs of large numbers, wherein, one key can be shared
with anyone (public key) and another is kept secret (private key).
· These
keys work very similar to the lock-and-key concept- your lock (private key) and
keys (public key). No matter how many people have the keys, they can only be of use, if it is used to open the right lock, i.e. the private key is rightly
paired with the public key.
· Once
you unlock the locker, you can see what’s stored in it. Similarly, when the
public and private keys used in transaction matches, users can see the value of
their digital assets (Bitcoins, ICO tokens, etc.) in their wallets.
Types of Blockchain Wallet
- Software Wallet
- Hardware Wallet
- Paper Wallet
- Single or multi-currency Wallet
We (Codezeros) is a blockchain wallet
development company in the USA, that pioneers in developing complete
cryptocurrency exchange software to facilitate secure and fast transactions.
Our team of experienced blockchain developers will build you a customizable and scalable cryptocurrency exchange platform with a high focus on security, connectivity, and seamless environment. Be the company that ensures the digital asset revolution through Cryptocurrency Exchange Development.
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