A cryptocurrency is a digital or virtual currency that designed to work as a medium of exchange. It built with cryptographic protocols that make transactions secure and difficult to fake. Also, the cryptographic protocol controls the creation of new units of a particular cryptocurrency. One of the most important features of a cryptocurrency is that any central authority does not control it, preferably the decentralized nature of blockchain makes cryptocurrency theoretically immune to the old ways of government control and interference.
Let’s have a look at the content of this article:
1. What is a cryptocurrency wallet?
2. What are the types of cryptocurrency wallet?
3. What is a hardware wallet?
4. Benefits of using a hardware wallet?
5. DigiSafeGuard hardware device
What is a Cryptocurrency Wallet?
In cryptocurrency, a wallet is just like your bank account number. It’s a means of storing your access to your cryptocurrency. Like when you have funds in your bank account and you know that the funds belong to you because you most likely created and put the funds in there. It has a collection of private keys that are used to make transactions on the Bitcoin network.
Types of Cryptocurrency Wallet
Hot Wallet: This type of cryptocurrency is commonly known as an online wallet. A Hot Wallet refers to a Bitcoin wallet that is online and connected in some way to the Internet. It is a device, physical medium, program or service which stores the public and private keys and can be used to track ownership, receive or spend cryptocurrencies.
Cold Storage Wallet: It is known as an offline wallet. Cold storage in the context of any cryptocurrency refers to keeping a reserve of any cryptocurrency offline. This is often a necessary security precaution, especially dealing with large amounts of cryptocurrency. It is an offline wallet provided for storing bitcoins and other cryptocurrencies. With cold storage, the digital wallet is stored on a platform that is not connected to the internet, thereby, protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible.
Except for this Hot and Cold storage wallet, another term called “Hardware wallet” might be familiar to you. Let’s talk about the Hardware wallet.
What is the Hardware Wallet?
Blockchain transactions are not reversible and most blockchains are reasonably anonymous. So, security cannot be overemphasized on the blockchain because If a hacker gets access to your assets and transfer your balance, you won’t be able to recover those balance and there is no central authority to report to in most blockchains and transactions are irreversible. Using a hardware wallet is a safe way to protect your funds from these hackers.
Here are some more advantages of Hardware wallet:
1.Multiple Cryptocurrency: Multiple cryptocurrencies can be stored on one wallet, so managing various cryptocurrencies is more comfortable in one place.
2. Unlimited Transactions: You can send Cryptocurrency from a hardware wallet an unlimited amount of times.
3. Secured Private Keys: Hardware wallets store and never expose your private keys to your computer. So even when you connect to the internet, your private keys cannot be stolen through a computer virus or malware.
4. Built-in Encryption: Hardware wallets are immune to computer viruses or malware that attempt to discover user’s private keys. For this reason, your private keys unrecognizable to any unauthorized parties.
5. Convenient: Hardware wallets can be used to receive and send cryptocurrencies at any time anywhere, as opposed to a paper wallet which must be imported to a software or hardware wallet if you want to transfer your cryptocurrency out of it.
6. Open Source Software: Softwares that run on hardware wallets are usually open source too so loopholes or back doors cannot be programmed into these wallets since there is an entire community looking out for the software security.
Securypto has designated an open source hardware device to ensure strong security and high-level privacy to its users. This dedicated hardware device is called DigiSafeGuard in Securypto and it has a hardware wallet feature for storing and spending the cryptocurrency. DigiSafeGuard is not only limited to acting as a hardware wallet but also offers anonymous messaging through an unsecured channel. DigiSafeGuard ensures a visual verifiable communication technique that makes remote exploiting of vulnerabilities impossible.
The DigiSafeGuard hardware device can be used as storing and spending multiple cryptocurrencies as well as ensuring secure messaging by its RSA public/private key system, encrypting files with 4096 bits RSA and AES encryption system, Securing internet connections, Managing passwords and many more.
More about DigiSafeGuard hardware device is coming soon.
Thanks for reading.
Author: Neyamul Hadi