A Cryptocurrency wallet is a small piece of application that maintains a record of public key keys utilized to digitally sign certain transactions for multiple distributed ledgers controlled by the user. As such, these keys are an integral part of the entire cryptocurrency system.
They serve as virtual keys that allow users to transact and receive payments in the form of coins. These can be traded, sold, given away and stored with other assets, just like any other conventional wallet. Just like any other conventional wallet, these can hold large amounts of money. In contrast, these are less secure since these have to be protected from hackers and unauthorized access by third parties.
A waves platform wallet usually stores several forms of transactions including fund transfers, smart contract codes and other forms of confidential information. Transactions made via the Internet are sent to this application through encrypted communications. Once the transaction is completed, this information is stored along with the transaction history into the database of this wallet.
The same goes for any other confidential information that is needed to perform the transaction or give off the impression of legitimacy to third parties. Transactions are only processed when these keys are present and verified by the Blockchain, a distributed ledger system that spans the world.
The Blockchain is considered the backbone of all Cryptocurrency Wallets because it validates all transactions done on the system. Transactions are only processed when these keys and their corresponding private keys are in the possession of the owner. These keys are known as private keys because they cannot be derived from public keys. This is done in order to prevent tampering and stealing of tokens. Aside from the fact that there are public keys and private keys, there are also another two layers of security which are known as the CA certificates and B certificate.
In a very simple definition, a Cryptocurrency Wallet is a software program that stores various pieces of information that are needed during the currency transaction. This information may include various kinds of currencies, different kinds of wallets, sending and receiving tokens, and the list continues on. In order to store these data and transactions, this kind of application would require two types of components.
There are the hardware wallets which are composed of a hard drive or solid state drive (SSD) embedded in the hardware and there are also the online wallets which are usually accessed via the Internet. This is why there is also the hybrid Cryptocurrency Wallets – the first one being the classic Cryptocurrency Wallet but with the added of a browser and the second one being the hybrid one.
A typical characteristic of a good Cryptocurrency Wallet is its accessibility to public and private keys. This is very important because these are very important when it comes to the authentication of the transaction of sending funds and the storage of these tokens. Most of these companies will not compromise with the security of their customers. As a result, their clients can be assured that their transactions are secure, even while using their Cryptocurrency Wallet.