What’s Cryptocurrency Wallet according to ordinary people?
A multi cryptocurrency wallet is nothing but your crypto asset bank account that is decentralized across the globe without any intermediaries. A bit chaotic again?
Crypto wallets are the only place at which you can store and make transactions of the cryptocurrencies. They are similar to our mobile or net banking applications that have a secure passcode to access. To be much identical and connected, crypto wallets can be connected to our email accounts that have an address and password. Email accounts can be utilized to store and share any valuable information.
Cryptocurrencies are being accepted as a payment option in many stores worldwide. Integrating Bitcoin as a mode of payment at check-out is seriously a good idea. All we need is an efficient, bitcoin wallet app for mobile devices.
Let’s see the benefits that a bitcoin wallet app could bring.
Trusted Form of Exchange
The digital nature of Bitcoin makes it the right and perfect solution for international transactions. Bitcoin payments are fast & cost-effective when compared to other slower & expensive payment options. Bitcoin payments are also free from foreign exchange rates and other hassles.
A digital wallet stores your Bitcoins locally. The wallet is secured by a unique private key that should not be disclosed to third parties. You can use this wallet to initiate a transaction.
Bitcoin follows the peer-to-peer mechanism. It means that each cryptocurrency wallet app acts as a node in a blockchain network. This network holds information about all the transactions made from the wallet. Another added advantage is that the transaction log is open and can be traced back at any given time. With this decentralized mechanism, a transaction can neither be blocked nor declined nor can the funds be locked.
A Safer Ecosystem
The Bitcoin ecosystem is set in an organized manner. It makes the wallet app a safer place to store, exchange, and use digital currencies. All the transactions in the wallet are signed with a cryptographic hash before they reach the blockchain network. A Bitcoin wallet allows you to send & receive payments and view your transaction history & current balance in the dashboard. The wallet also runs a few operations like synchronizing the blockchain, which is essential for validating transactions.
To initiate a transaction in the wallet app, you should know the recipient’s Bitcoin wallet address. Each wallet has a unique address. It is a combination of numbers and upper & lower case letters. A user can generate any number of addresses as he/she wants for their wallet. Knowing only the address, one can check how much money was sent to and from it. But it is not possible to say which wallet is associated with the address and who the actual recipient of the money is. Hence the anonymous factor.