What is a Crypto Wallet?

What is a Crypto Wallet?

This weekend marks one of the most vibrant commerce days of the year – Black Friday and Cyber Monday. With deals to be had around almost every corner – it may be appropriate to examine how cryptocurrency fits into the world of eCommerce. 

Cryptocurrency – and the blockchains that it runs on – can enable an economy without borders, money that moves at lightning speed and with security granted by the highest level of encryption and decentralization. To understand what crypto can do, let’s take a look at one of the most important tools in a crypto users pocket: their crypto wallet.

What is a cryptocurrency wallet?

A cryptocurrency wallet is a piece of software that keeps track of the secret keys used to digitally sign cryptocurrency transactions for distributed ledgers. Whoa. Lot of buzzwords in there. Let’s break it down.

Distributed ledgers rely on public and private key pairs to sign transactions in order to make sure they are “authentic”. The “secret keys” that one stores within their crypto wallet are used to sign those transactions. Those keys are the only way to prove the ownership of the digital asset and the only way to execute a transaction that transfers them or changes them in any way. They are vital to the cryptocurrency ecosystem. Importantly, unlike the traditional leather wallet sitting in your pocket, a crypto wallet does not contain the actual coins of the cryptocurrency. It contains the users authority to use those coins. 

The wallet itself has an “address” on the blockchain. This is an alphanumeric identifier that is generated based on the keys. This is a specific location on the blockchain where coins can be sent and stored. Currently, the prevailing technology has this location as a machine readable address, but it is difficult and error-prone for humans to interact with it. As a result, several organizations – such as Unstoppable Domains – have been working on a “human readable” crypto wallet address. Soon, sending crypto payments will be easier than providing a phone number or email address. 

Because of the importance of these keys, many crypto users have focused on the security of their wallets, doing everything in their power to make the keys as difficult as possible to steal. There is, of course, a spectrum of security and each individual needs to decide for themselves where they fall on that spectrum. On one end – the most secure end – there are “cold” hardware backed wallets. These are items like a dedicated USB drive with secure silicon built-in that store your private keys. Unless this USB is connected to your computer, and your computer is online, there is no way to access your authority to move your coins on the blockchain. On the other end, there are encrypted browser extensions that shield your private keys with commercial grade encryption. As with everything in the crypto universe – we recommend that you do your own research to determine what level of security you need and balance that against the usability you desire for your cryptocurrency.

ThunderCore, as one of the leading companies in the blockchain space, has issued our own crypto wallet – the ThunderCore Hub. It natively supports all of our crypto tokens like the ThunderToken or the stable coins TT-Dai and TT-USDT. It is a mobile wallet, allowing you to carry access to your tokens anywhere you wish. Download the wallet using the buttons below. During this holiday season, we will be providing a sign-up bonus to those who sign-up with their social sign-in (currently Google, Facebook, WeChat supported). Take a look now!

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