Along with the rapid development of technology, we can do many things more efficiently and practically. For example, various securities applications can be downloaded for free in the investment sector; as an example of crypto investment, currently available blockchain wallet applications.
A Crypto wallet, bitcoin wallet, or blockchain wallet is a digital wallet application that can be used by its users and manage and store cryptocurrency assets.
What is a Blockchain Wallet?
A blockchain wallet is an electronic wallet used to store crypto assets. In this case, users can also manage balances of cryptocurrencies, consisting of bitcoin and Ethereum. Creating a blockchain wallet is free and can be done online.
Once the wallet is created, the user will get a blockchain wallet ID code, almost like a bank account number. Users can access their wallets via the blockchain.com page or download them via the Google Play Store or App Store.
In its main view, this wallet’s current crypto balance shows the user’s transaction history. In addition, users can press the cryptocurrency balance icon, which will display the balance value in fiat or the country’s currency.
Difference between Cryptocurrency and Blockchain
Then, what is the difference between cryptocurrency and blockchain? Cryptocurrency is a digital currency with cryptography as a security system so that no one can fake it.
Meanwhile, blockchain is a technological system used as a digital data storage container, in this case, crypto assets and connected to cryptography.
How Blockchain Wallet Works
The blockchain works when a block stores new data and then manages it. Blockchain includes three types of stages: records, transactions, and blocks.
This blockchain system has also been decentralized, meaning that no one party has complete control over this, but it is divided between each device with special software installed.
But, in order to make yourself safer, there are some things you can do. One of them is by utilizing an encryption service. But using it, you can encrypt all online communications to ensure data privacy. Therefore, both your wallet and personal data can remain safe.
Blockchain Wallet Advantages and Disadvantages
According to a statement on Blockchain’s official website, nearly 30 million wallets have been created to date. Here are some of the benefits you can get from the blockchain wallets:
- It’s the most popular bitcoin wallet in the world.
- It has a built-in trading feature.
- Administration fees are charged for relatively low transactions (buy, sell, and trade).
- The safety is always guaranteed.
In addition, there are several disadvantages of blockchain wallets, including:
- It works in a centralized. system
- Ownership of anonymity tends to be really low.
- Blockchain wallet servers store users’ private keys.
Blockchain Wallet Security
The security of a digital wallet is indeed one of the most important considerations for its users. This is so that irresponsible people cannot hack their wallet accounts. Here are the security levels of blockchain wallets.
Level 1
Level 1 security is made to avoid losing access to user accounts. At this level, users are asked to verify their email and set up password generation (the blockchain system cannot store passwords).
Level 2
Level 2 security is created to prevent others from illegally logging into the user’s wallet account. This is done by means of two-way authentication and a call to the user’s phone number to receive a password.
Level 3
Level 3 security is created to allow users to block TOR requests that could be abused. TOR basically means the global network of servers that can route web traffic through multiple computers with the aim of preventing others from tracking users’ origins.
How Secure is the Bitcoin Blockchain?
Blockchain is a database. A blockchain database is used to record sending and receiving bitcoins. The site is the forerunner of blockchain technology that can be applied to various industries. If this can be used to record finances globally, why can’t it be used to record other things?
Every user who has a wallet is neatly stored in the block. Its function is to let users know where their wallet is stored.
For data security, for example, if someone else wants to look into this space, everyone can see someone’s bitcoin wallet by the amount of its balance, on which space, and transactions with anyone, but he can’t find out whose wallet it belongs to.
Unless, someone who owns the wallet tells the address of the block, then someone else can find out.
But, to access and transfer the balance in the wallet, one must also have a private key or PIN. This will make the blockchain much safer as long as the user remembers their own set keys and PIN.