Crypto Academy Week 3 Homework Post for [@sapwood] Blockchain Wallet- Chapter-3
Hello @everyone i have attended the lecture of sir @sapwood about the Blockchain Wallet. If you have not attended the lecture yet then come and join this class and learn important things about the types of the Blockchain Wallet. As i have learned many new things which i did not know even i did not heard about them.
Today Homework Task To Attempt:
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- Have you ever used a Hardware/software wallet? Which one is having a better security advantage?
- What are the important points to consider when you deal with an Exchange(centralized) Wallet & Decentralized wallet. How do you secure/restore both types?
- 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?
First of all i want to explain Blockchain wallet . As today's posts topic is about the blockchain wallet and its types. So firstly one should know about the blockchain wallet.
- Definition : A blockchain wallet is basically a digital wallet which is used to store and manage their crypto assets. Blockchain Wallets are provided by the specific Blockchain's company . A blockchain wallet is used to transfer your assets to others , to receive your assets from others and for the trading purposes.
Have you ever used a Hardware/software wallet?
I am a newcomer in the crypto fields and i have not tried any hardware wallet yet as i do not have anything to store there. As far as Software wallet is concerned i have used different software wallets such as : Tron Link Pro Wallet , Atomic Wallet and Binance Smart Chain Wallet.
Hardware Wallet :
As from the word "Hardware" it is clear that this type of wallet are stored in a hardware. So the portable electronic devices which are used as the crypto wallets. We can hold these wallets in the hardware devices in our hands. Hardware wallets save your keys offline and you can access them any time. You can connect them as a USB device or through the bluetooth connections. These type of wallets may also be helpful for the newcomers who do not know anything about the coding and technical things , then it may be very successful choice for him.
These wallets are also known as the "cold wallets" , because they are offline. There is no need of any online system all the time . You just have to connect it with internet when you want to do any transaction. And it always remain safe and sound . So this type of wallets are more secure than the software wallets. Even when you Log In Hardware wallets they remain safe and sound.
Some Examples Of Hardware Wallets:
There are many companies who offer hardware wallets but some of the most trusted hardware wallets are given below:
Ledger Nano X : It is most famous and trusted hardware wallet and it supports a lot number of coins. According to the website of the Ledger Nano X it supports almost 1184 coins including most of the major and famous coins such as : Bitcoin (BTC) , Bitcoin cash (BCH) , Binance Coin (BNB) , Cardano (ADA) , Dash (DASH) , Dogecoin (DOGE) , Eos(EOS) , Ethereum (ETH) , Ethereum Classic (ETC) , Litecoin (LTC) , Monero (XMR) , Ripple (XRP) , Stellar(XLM) , Tether (USDT) , Tron (TRX) , Zcash (ZEC) , Tron (TRX) and 500 ERC-20 tokens
Trezor : Trezor is another valuable hardware wallet to store cryptocurrencies. And according to the trezor's itself listing it supports these coins: Bitcoin, Monero, Litecoin, Dash, Zcash, Bitcoin Cash, Bitcoin Gold, Ethereum and all ERC20 tokens.
KeepKey : The next important hardware wallet is of KeepKey. KeepKey also supports big cryptocurrencies. According to the blog of the KeepKey it natively supports these 7 cryptocurrencies : Bitcoin , Ethereum , BitcoinCash , Bitcoin Gold , Dash , Dogecoin , Litecoin plus over 30 more ERC20 tokens.
BitBox : BitBox is a new and emerging hardware wallet it also supports software wallet. It also supports a lot of coins including the tokens. According to the shiftcrypto.ch website it supports over 1500 coins and tokens.
Software Wallets
These wallets are in the soft form. Software wallets are the programs made to store your assets and it is provided by a specific company. Software wallets secure your cryptocurrency. Anyone can use it to store his cryptocurrency , to send his cryptocurrency and to receive cryptocurrency.
Software wallets are know as "Hot Wallets" because these wallets store your cryptocurrency online. These are connected to the internet. They can receive more cryptocurrencies than the hardware wallets.
Some Examples Of Software Wallets
Software wallets always use by an application . You have to download the application of the wallet and then you have to install that application to use software wallet to store your assets. Software wallet may be in the form of the Web wallet , Desktop Wallet or mobile wallet app. If you want to use the web wallets then you can simply make your account and start using your wallet without downloading and installing your wallets's app.
Desktop Wallet : These are those software base wallets which you have to install on your desktop computer. Then you can Create your wallet and use it. Such as Atomic wallet. It has its own application that you can install on your Pc and use it.
Web Wallet : These are those wallets which are operated though the online websites. You just have to create your account and there is no need of installing any application. There are a lot of Websites which offer web wallets such as : Coinbase , Binance , Poloniex , Electrum ... etc.
Mobile Wallets : These wallets are operated through a mobile device. You have to install the required wallet application. It may be for the Android or iOS. these wallets are considerably more secure than other software wallets because one has always access to his mobile. There are many Mobile Wallets Such as : Tron Link pro , Atomic Wallet , EXODUS , Electrum ... etc.
Which one is having a better security advantage?
Hardware wallets are free from the hacking so we can say them cyber - attack free wallets. And one can consider them to avoid hacking of his assets . One can save his assets from being theft his money. These type of wallets urges you to store more assets. Hardware wallets provide you full satisfaction about your cryptocurrency. If i say that you can save your assets physically in these devices then it will not be wrong. Really you can feel them.
Software wallets may fall a prey to the hacking purposes. As they are connected online and our assets are stored to the third party. As well as we have also full control on our assets but we can not deny the attacking of hackers who are wandering all around to hack all the assets in the world. So If a hacker attacks on the third party then our assets will also be lost . So it is not more secure.
As i have tried to explain the security of both the type of wallets. And according to my views Hardware wallets provide us more security advantage and satisfaction than the Software Wallets . As in the hardware wallets our assets are fully secured offline and there is no any single single risk of being hacked. There is 0% risk of loosing your money in the hardware wallets. So we can say that hardware wallets provide better security.
What are the important points to consider when you deal with an Exchange(centralized) Wallet & Decentralized wallet. How do you secure/restore both types?
Centralized Exchange : In the centralized exchange you do not have absolute (complete) control to your assets. Your account is basically in the hands of the third party which is running that exchange. These are used for the short-term processes such as for the spot trading, p2p, Futures, liquidity pool... etc.
Decentralized Wallet : In the decentralized wallet you have absolute control of your account and assets. It is fully under control of you. There is no any influence on your account of any third party. These are used for the long term procedures like (HODL) for the better security and for the absolute control.
Both the types are very important and when we use them we should take care of each and everything.
Important Points To Note About Centralized Exchange
The very first thing to note in the Exchange is that you have to give a proper and correct Email account. Then you have to give Correct Mobile Number. And after setting up your account and to make it more secure and protected you must set up 2FA. As we know that when we deposit , transfer and deposit in the exchange we received an OTP on our mobile as well as on our mail . As you do not have any control to your private keys.So if you have given your information correct and you have access to all the provided information then you can easily do each and everything like : deposit , transfer , withdraw...etc. We can say it a custodian wallet. It works just like bank.
How To Restore Centralized Exchange?
Exchange has a huge benefit that if you forget your password then your assets are still safe and sound as you can claim your new password. But their is a limitation for changing the password. Changing password prohibted your assets transfer for at least 24 hours. As i have faced this problem. I forgot my Binance password and when i generate new password it took 24 hours to transfer anything from my account.
Important Points To Note About Decentralized Exchange
If we are using a decentralized wallet then we have all the control on the keys. And there is no one who can unlock your wallet because all the keys are in your control. So it is very necessary to keep your all the keys offline and safe and sound. If you lost your keys then you would not be able to get your assets. Only your keys can bring back your money.
How To Restore Decentralized Exchange?
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It is quite simple to restore or recover your account if you have lost your keys. You can easily recover your wallet by using the private key, mnemonic key or keystore file. I have already explained this restoration of wallet in the Week 2 Homework. So i do not want to explain it with complete detail so if you want to know more detail then you can visit my that post. Crypto Academy Week 2 Homework Post for @sapwood|Blockchain Wallet- Chapter-2
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?
Web 3.0: It is the third generation internet service for the websites as well as for the applications. It is the fastest technology for the websites. The main objective of this technology is to make organized , intelligent , open and connected websites.
It is also know as the Semantic web. Because it contains a lot of technologies which help you to find data on the websites and it plays an important role to organize the data of any website which is using this 3rd generation technology. Due to this technology websites displays animated content.Web 3.0 Wallet : It is completely different from the fiat wallets as fiat wallets holds coins but Web 3.0 does not hold any coin. Actually it provides a control over the coins listed on the blockchain and it allows you to pass control to the other wallets.And you will be surprised to hear that almost all the DeFi apps can be accessed by a web 3.0 wallet.
Examples Of Web 3.0 Wallet
There are a lot of examples of the web 3.0 wallet. As i have also use some of the web 3.0 wallet. But i did not know that they were web 3.0 wallets.
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Some Web 3.0 Wallets are given : Metamask , TronLink , Trustwallet , Binance Chain Wallet ... etc.
These are all the extensions which you can install in your Pc and use them without any hindrance . They are quite simple and easy to use . You just have to installed them in your browser and then just set your own password then it will provide you access and provides you a unique address to you.
My Experience With Web 3.0 Wallets
Yes dear fellows i have also used web 3.0 wallets. Firstly i used Metamask web 3.0 crypto wallet. It was the first web 3.0 wallet which i have ever used. I used it to store my "hunt" coins which i received from the steemhunt. But i did not received any benefit by using that wallet because the steemhunt team burn all the "hunt" coins of all the holders in the steemhunt.
After that i have recently installed Tronlink Wallet to access my trons. As we know that steemit is providing us bonus rewards at every post equal to the steem power quantity in the form of the tron. So to manage my trons i installed TronLink extension in my browser. As it helps a lot to use Justswap.io and Justlend.org. As these are the Tron based dApps. If you want to know more information about the Jstswap.io and JusLend.org then visit my this post: Crypto Academy Week 2 Homework Post for @yohan2on||Decentralized Applications (Dapps)
I have also used Binance Chain Wallet to receive some tokens. Basically i participated in an airdrop and in that airdrop Binance Smart Chain Address was required so i installed it in my browser as a n extension and started to use it.
Uses Of Web 3.0 Wallet
As we know that everything has its own advantages and disadvantages. Similarly Web 3.0 wallet has also its own distinct benefits and uses which are given below :
- The most important use of the Web 3.0 wallets is that they can interact with other dApps immediately.
- Web 3.0 provides the complete control to the owner. So these are non-custodial. As TronLink wallet can interact directly with the Justswap,io and JustLend.org.
- Thses wallets are operated through the smart contracts.
- These are the key based wallets which is obtained by (Private Key+Public Key)
Cc:-
@sapwood
@steemitblog
@steemcurator01
@steemcurator02
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