The blockchain structure for Ethereum is different from Bitcoin. A Bitcoin wallet does not support storage of Ethereum. Thus, if you want to trade, send, receive or store ETH, you need an Ethereum wallet.
An Ethereum wallet is like a conventional physical wallet – it helps store and transact ETH. However, since cryptocurrency is intangible and not available in any physical form, Ethereum wallet stores the records of transactions that exist on the blockchain. The wallet interacts with the blockchain to enable transactions.
Before you embark on the journey to create Ethereum wallet, you need to wrap your heads around a couple of following concepts:
The wallet address is akin to a bank account. When trading, the wallet address is used to send and receive the ETH to and from the counterparty. Anyone knowing your wallet address can access your account information, such as the amount of ETH in the wallet and transaction history. However, as the wallet address is not bound to a user’s identity, there is no concern of identity theft.
The private key is the same as the personal signature but it is encrypted. The private key is used to sign transactions in Ethereum. While trading, the private key provides access to an Ethereum account and enables authorized transactions. Any individual who knows your private key can access ETH in your wallet, thus the security of your private key is of the utmost importance.
Types of Ethereum Wallet
Like Bitcoin wallets, Ethereum wallets can be categorized into the following types:
An Ethereum paper wallet is a piece of paper with code on it. A paper wallet is neither connected to the internet nor stored on a computer, making it one of the safest options. You can keep your paper wallet with yourself or store in it a safe.
The paper wallet comprises both public and private keys along with the QR code to scan the keys.
A mobile wallet is usually referred to as a light client as it eliminates the need to download the entire blockchain to operate. Instead, mobile wallets count on miners or nodes to send them precise information pertinent to the current state of the network.
When it comes to Ethereum wallet development, mobile wallets are a preferred option as they allow easy access to ETH assets on-the-go, provided you have a cellular connection. Furthermore, the security of mobile wallets can be fortified with advanced features like biometric authentication, multisig support, and more, to facilitate authenticated transactions.
Web wallets are online wallets that use cloud storage and can be accessed anywhere. They are relatively faster than other wallets. Since web wallets store your keys online, they are more susceptible to cyber-attacks and hacking. However, a web wallet reinforced with the right security features allows secure and authenticated transactions.
Desktop wallets run on your laptop or computer. You can either download a full client with the Ethereum blockchain or use a light client. The latter option is easier; however, the former offers additional security as it does not rely on the miners or nodes to provide them with accurate information; they validate transactions on their own.
Hardware wallets are cold storage of crypto assets. They are much like traditional, portable hard disks, but designed specifically to be used for cryptocurrencies. They can be plugged into a laptop or computer for a transaction and they generate the keys offline.
Given that hardware wallets are not connected to the internet, they are immune to cyber-attacks. Most hardware wallets come with backup options to ensure that you do not lose your Ethereum and can be further underpinned by two-factor authentication and PIN password to achieve more security.
Which is the Best Wallet for you?
Your choice of wallet should depend on things like security, scalability and usability. Considering this, mobile wallets make an ideal option. Since a mobile wallet can be accessed anytime, anywhere, it allows easy and quick access to your assets. Furthermore, most mobile wallets come with flexible infrastructure, which means that they can be easily scaled up to integrate Ethereum tokens as per business needs. Although mobile wallets are considered less secure than hardware wallets, they can offer as much security as a hardware wallet when fortified with the right security features.
Thus, mobile wallets are a perfect option with their enhanced security, scalability, and user-friendly access.
Create your Wallet with Experts
To navigate your process to create Ethereum wallet, partner with Antier Solutions – a leading blockchain development company trusted by SMEs and large enterprises across the globe. We have real-world experience delivering custom wallets underpinned by industry-leading features that contribute toward world-class security and user experience. Our Blockchain engineers follow a coherent roadmap to steer your wallet development process and accelerate the deployment to help you gain an essential competitive edge.
Choose between white label solution and development from scratch
We specialize in providing highly-secure, feature-rich white label Ethereum wallet in just 3 weeks. On the contrary, we can provide you with a fully-customized Ethereum wallet developed from ground zero. Regardless of your needs, our Ethereum wallet development services are focused on delivering secure, flexible and user-friendly wallet infrastructure.