Blockchain Wallet: What is it?

By Omar Abdulla

Carrying a wallet might seem too old-fashioned and boring nowadays. But imagine your wallet was digital! This is where blockchain wallets come into play. The blockchain wallet lets users manage and store Bitcoin, Ether, and other cryptocurrencies. A blockchain wallet allows users to move cryptocurrencies and convert them back into their local currency.

So how does this all work?

An individual can request the transfer of a certain amount of bitcoin or other crypto-assets to a third party, and the system generates a unique address that can be sent or converted to a QR code. QR codes store financial information and can be scanned by digital devices. They are similar to barcodes. Each time a request is made, a unique address is generated. Crypto-assets can also be sent when an individual provides them with a unique address.

Sending and receiving cryptocurrency payments is similar to doing so through PayPal, with the exception that cryptocurrency is used instead of a credit card. By facilitating online transfers through financial institutions, PayPal acts as a go-between for customers and their banks and credit cards. In addition to exchanging Bitcoin for other currencies, users can also swap currencies, known as swapping. The Blockchain Wallet is a secure and convenient way to switch out crypto without losing any security

A compromised wallet account can lead to users losing control of their assets, so wallet security is crucial. Blockchain Wallet protects user funds from hackers, including the company itself, with several levels of security. Blockchain Wallet accounts require passwords for security purposes, just like other digital services. In addition, mnemonic seeds are used. A mnemonic seed is a string of random English words that functions similarly to a password. Using the seed, a user can restore their wallet, including cryptocurrencies, if they lose their phone or device. Mnemonic seeds are not stored by Blockchain companies, like passwords. Since the seeds use an industry standard, even a shutdown of the company will not affect the wallets.

If you plan to stay in the cryptocurrency space for any length of time, you need to make use of a blockchain or crypto wallet. You should use a wallet to keep your digital assets safe whether you plan to use them for payments or transactions, or simply to store access to your cryptos while you remain invested in them. Additionally, you can invest in stocks of companies developing and utilizing blockchain technology as an alternative to directly investing in cryptocurrencies.