Cryptocurrencies have firmly established themselves in the global financial space. A complementary product is being developed to expand this ecosystem. If there is currency, it must be stored somewhere. This led to the development of the crypto wallet, which enables users to conduct cryptocurrency transactions.
No technology can gain sufficient popularity and spread if it is too difficult to use. Because of this, the decision to create apps for cryptocurrency wallets has proven to be quite successful and practical. This article will explain cryptocurrency wallets, how they’re made, what are blockchain wallet development services, and what you should keep in mind when developing their applications.
What is a Crypto Wallet?
Crypto Wallet is an application that transfers digital transactions or cryptocurrencies between blockchain network participants and activates blockchain smart contracts. It has the same storage capabilities as an e-wallet but for cryptocurrencies. It is software that securely stores cryptocurrencies and tracks their transaction histories (buying, selling, and crediting)—additionally, the wallet functions as an identifier and blockchain account.
Installing a cryptocurrency wallet on a smartphone makes it as simple as possible. It can be stored on a laptop, in any web browser, or even… in your pocket.
Wallets remove intermediaries from financial transactions. This enables customers to conduct immediate transactions. With a cryptocurrency wallet, transaction fees are reduced or eliminated. This increases user satisfaction and frequency of interactions.
How do Crypto Wallets Work?
Using a combination of a public and private key, a crypto wallet executes transactions. The public key is your wallet’s address (roughly speaking, an analog of a bank account.) You may freely share this address with a financial institution or an individual counterpart. Continuing with the analogy of the banking system, the private key is analogous to the PIN for your debit card, i.e., the password for the public key.
For your wallet to receive funds from the sender, you must provide the recipient with your public key – your crypto wallet address. Your cryptocurrency is not directly stored in your digital wallet but resides in the blockchain. Since cryptocurrencies have no physical form, your cryptocurrency wallet contains a piece of encoded information rather than currency. Even if you hold a cryptocurrency wallet in your hand, the money itself will not be present. What, then, is it? Let’s discuss it right away.
Types of Crypto Wallet
Identical to conventional electronic wallets, crypto wallets are subdivided into variants tailored to the holder’s needs.
Cold Wallets are hardware-based wallets. This variant is appropriate for cryptocurrency holders who view it as a long-lasting asset and have no immediate plans to use it. In essence, cold wallets are similar to flash drives or even paper wallets (sometimes considered a separate type) that contain printed public and private key information. Sounds strange, wouldn’t you say? However, crypto-holders are more confident in this type of storage because physical wallets cannot be “hacked” (although you are not secured from “good old” theft or a trivial loss in this case if you did not take the appropriate measures first).
A software-based wallet known as a Hot Wallet. This variant is optimal for crypto traders who conduct daily or multiple transactions. Consequently, these cryptocurrency wallets are less secure. Depending on where they are kept, hot wallets are divided into subspecies:
Each of these subspecies has its distinct benefits. A desktop wallet, for instance, is stored on your computer or laptop. This type is relatively secure (except for viruses) but has disadvantages (you cannot carry your laptop everywhere). Examples are Bitcoin Core, Bitcoin Knots, MultiBit, Armory, and Electrum.
Mobile wallets are private, inexpensive, decentralized, and encrypted. Bitcoin Wallet and Hive Android are examples. In addition, these Crypto wallets are the most user-friendly, so they are frequently downloaded. Consequently, 62% of all blockchain storage is utilized by mobile blockchain wallets.
Web wallets enable access to cryptocurrencies from any browser, mobile device, etc. They are cloud-based. Online storage of private keys makes them easy to use. They are susceptible to hacker attacks.
What is Crypto Wallet Development?
The resilience of cryptocurrencies has already been demonstrated. Many financial analysts believed it to be a modern fad that would quickly pass, but this did not occur. Instead, Bitcoin emerged in 2009 and is flourishing. And there are approximately 18,000 competitors, both serious and not so serious. Since 2011, the number of crypto wallets has steadily increased, per Statista. And while there were approximately 11 million at the end of 2016, the population increased from 66 million to 81 million between January 2021 and January 2022 alone.
How do I Make a Crypto Wallet?
Most cryptocurrencies, such as Bitcoin and Ethereum, come with their cryptocurrency wallet, except for integration for traders who wish to invest in multiple cryptocurrencies. These cryptocurrency wallets are simple to implement and employ for basic tasks. However, enforcing more complex business logic or functionality in your crypto wallet app is also possible.
You can hire Suffescom Solutions Inc to develop a crypto wallet, a cryptocurrency wallet application, or an entire digital ecosystem that includes crypto assets, stock-buying integration, and other neobank-specific features.
Cryptocurrency Wallet Development
It cannot be said that the process of creating crypto wallets is a unique endeavor. Any product requires meticulous planning that is divided into stages. Here we will discuss the stages of digital wallet app development. They are:
Business Planning & Technical Analysis
Creating a custom wallet has a well-defined objective, which should guide subsequent functionality decisions. Before beginning work, you must understand the team composition that will manage the development within a clearly defined timeframe, regardless of the team’s approach to managing processes.
Consider the Budget
Following the requirements, team, and schedule, a budget is formulated, which must be further subdivided into stages. In addition, you must have a financial safety net that you can access if necessary because, at any point, there may be multiple ideas and, as a result, unexpected expenses. Therefore, the MVP is created first, and additional features are “strung” upon it.
UI & UX
Any excellent idea requires an equally cool visualization. A crypto wallet, packed with useful features, will never become popular if its interface is too complicated for a broad audience and risks remaining a limited niche product for specialists. Although we do not exclude that your target audience can be the latter, they would also like to see a usable product.
Development
Once the business and technical characteristics of the wallet have been determined, the architecture of the wallet application is developed and agreed upon with clients. This step defines the communication between the wallet’s frontend and backend and how the wallet is created, data is stored and retrieved, and transactions are processed. The architecture serves as a template for all subsequent phases of development, where the backend will serve as the connection between the front end and intelligent contracts.
Testing
Some clients prefer to skimp on the unavoidable portion. Consequently, at this stage, the team eliminates all bugs and errors discovered in the application.
Deploy
The phase in which the crypto wallet is released into the wild. The first downloads and natural user experience will reveal how well the product is constructed and what needs to be fixed immediately.
Support
Crypto wallets are a technology that necessitates continuous support and updates for security and enhancing existing features.
Output
As with any financial product, a crypto wallet is a complex technology that necessitates the maximum participation of experienced professionals, including developers, testers, business analysts, and marketers.
Rarely do fail crypto products receive a second chance, at least under the same brand. Find a competent crypto wallet development team conversing with user-centric design and blockchain technology. At Suffescom Solutions Inc, you’ll find empathetic, qualified individuals with whom you can find common ground for further productive cooperation.
