Crypto Wallets and MetaMask

Source : Photo

Topics

  1. What is Blockchain wallet with email example ?
  2. Features of blockchain wallet.
  3. Blockchain fees
  4. Wallet types
  5. Wallet classification based on connection
  6. MetamMask

Blockchain wallet

A blockchain wallet is a cryptocurrency wallet that allows users to manage cryptocurrencies like Bitcoin, Ether, DogeCoin.

Once a wallet is created in any platform, two keys are created — public and private key.

List of Crypto wallets :

https://www.g2.com/categories/cryptocurrency-wallets

Public key is like a public address which is used by all other users to send the tokens/cryptocurrency. Private key is private to the user, and this is not shared with anybody.

Example using email -

Anyone with your email address can send you the email, so this email address is public, similar to public key.
Nobody can send email from your email address as this operation requires a password as well. Passwords are similar to private keys.

You use the private key to send funds from your account to different accounts. You can receive funds using your public address.

Features of blockchain wallet -

  1. Easy to use
  2. Secure
  3. Instant transaction
  4. Supports multiple types of currency

Users can also exchange Bitcoin for other crypto-assets and visa-versa, known as swapping. This practice is an easy way to switch out crypto without leaving the security of the Blockchain Wallet .

Blockchain Fees

Every transaction done in a blockchain network requires fees. This fee is dynamic in nature. Although you can try to comprehend this fee before making a transaction, chances are you could be wrong as fees charged per transaction are dependent on various factors. Both the transaction size and the conditions of the network at the time of the transaction can greatly impact the size of the fee. Miners mine (meaning execution and validation of transactions) and process every transaction, so it depends on the current transaction load of the network. If there are more transactions, chances are it will take longer and will cost more as well.
Blockchain network also offers a priority fee which could get the transaction completed in comparatively less time. This fee can be passed from your wallet before making a transaction.

Wallet types :

  1. Software Wallet

An application which is downloadable on devices like laptops, mobiles. Can be used offline/online. Security keys are stored/managed by wallet providers. Can only be installed from the machine where this is downloaded.

2. Hardware Wallet

This takes the security a step further by storing/managing keys in the hardware itself. These wallets are portable and can be connected to different devices. Less prone to malware attacks. Uses an integrated software which comes with the hardware to make transactions.

3. Paper Based wallet
An offline process for storing cryptocurrencies. A printed paper which has public & private key which are accessed using a QR code. Eg — Bitcoin paper wallet, MyEtherWallet.

Wallet classification based on connection

Hot wallets are meant for everyday users where the keys are stored in the crypto software providers. These wallets are connected to the internet.

Storing a large amount of digital assets in a hot wallet, such as a web wallet or a mobile wallet, is not advisable as it leaves your funds exposed to potential security threats, such as cyber theft because of connection to internet all the time.

Cold wallets are considered the more secure cryptocurrency storage solution as they are not connected to the internet. You only connect your cold wallet to the internet when you want to make a transaction.

Hardware wallets and paper wallets are both cold wallet options.

MetaMask

Metamask is a software cryptocurrency wallet used to interact with the Ethereum blockchain.

Metamask is the simplest and most secure way to connect to decentralized/blockchain based applications . Allows users to store and manage account keys , send and receive Ethereum based cryptocurrencies and tokens.

It can be used as an extension or downloaded as a mobile app.

Sending transactions is as simple as clicking the ‘Send’ button, entering the recipient address and amount to send, and selecting a transaction fee. You can also manually adjust the transaction fee using the ‘Advanced Options’ button, using information from ETH Gas Station or similar platforms to choose a more suitable gas price.

To use MetaMask, to interact with a DApp or smart contract, you’ll usually need to find a ‘Connect to Wallet’ button or similar on the platform you are trying to use. After clicking this, you should then see a prompt asking whether you want to let the DApp connect to your wallet.

Any DApp you can think of would require a transaction to be done (using either token or cryptocurrency); in such cases we need a wallet which can take care of the transactions. Every DApp can have their own wallets, but it would be a repetitive task for users as they will have to create accounts in all the DApps they will be using. Hence instead we can use a single wallet across all the DApps for transactions. Metamask is widely used by DApps to make transactions so that the same metamask wallet can be used by users to access any DApp on Ethereum blockchain network.

Once you create a Metamask account, every user is given a bunch of words using which you will be able to recover your funds and account. Without these words, Metamask will not be able to help you. So keep these words safe with you.

References

https://decrypt.co/resources/metamask
https://en.wikipedia.org/wiki/MetaMask
https://www.investopedia.com/terms/b/blockchain-wallet.asp
https://coinmarketcap.com/alexandria/article/hot-wallets-vs-cold-wallets-whats-the-difference

Conclusion

Hope the article was useful. You can check these blogs for further reading :

Web3.0
Blockchain Mining
Solidity programming in Ethereum

All claps and follows are highly appreciated. Happy learning. Cheers!
Reach out to vivek.sinless@gmail.com for any queries or free lancing work.

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