Crypto wallets have evolved. They are light intuitive apps that enable users to store, send, receive and trade crypto assets easily. While different kinds of wallets offer different advantages, each one has its own set of developmental obstructions. However, resolving these challenges can come easy with the best white label crypto wallet solutions.
But before that lets find out what are the challenges in crypto wallet development and how can they be resolved.
Challenge #1 : Speed Challenges
Some cryptocurrency wallets suffer from sluggish transaction speeds. Because crypto is a very volatile market no user can afford to trade using slow crypto wallets. Thus, the industry demands lightning-fast wallets. By using sidechains and batch processing, the transaction processing time of the wallets can be reduced significantly.
Challenge #2 – Security threats
Crypto exchanges and wallets are prone to security breaches and hacks. By using white label crypto wallet development, you can make sure the right encryption and decryption protocols are used. This could significantly reduce the risk of hacking. In addition to this, users need private keys that are 12-word mnemonic phrases to access their wallets. This private key ensures complete privacy and protection to the wallet users’ assets. Some of the more popular ways of providing security to wallet user are:
Two-factor authentication is a second level of authentication after the password. It could be a code sent to the user’s phone which can then be used to sign-in the wallet.
Multi-Sig Wallet protection
Sometimes when an institution or a group of users buy crypto assets, they go for multisig wallets. While it’s easy to manage a single user wallet, the multi-sig wallet requires the wallet to be accessible by more keys than one. This could be a complex functionality to build from scratch and that is where going for a white label crypto wallet development would come handy.
Better encryption standards
Different types of encryption methodologies exist in crypto space and these add extra layers of security. For example, AES-256-CBC provides more security to wallets against hackers.
Crypto wallets are highly prone to Distributed Denial-of-Service attacks. The attackers flood the wallets with fake transactions bringing it to the point of breakdown. That is where a crypto wallet needs a DDoS attack mitigation plan.
Challenge #3 Ease of use
Crypto wallets or exchanges sometimes scare the users because of the complexity around their use. Having some of the below features help crypto users feel familiar with the technology and offers them ease of use:
Integrated QR Code Scanner
Wallet addresses are long alphanumeric characters and very often users end up keying in a wrong digit or alphabet. For this an integrated QR code scanner comes in handy. With just a click one user can transfer funds to another user.
Integrated Near Field Communication (NFC)
A crypto wallet with an NFC speeds up the transfer of funds between the users without security issues. The sender can click on the NFC tag in their wallet and the receiver’s wallet address gets retrieved directly. This is another way of simply transferring the funds to the right wallet. As this simplifies the user’s transactional capability, such wallets become a preferable choice for the users.
Challenge #4 Duplicate Payments handling
Chargebacks due to duplication payments can put the wallet user to loss. The wallet must be developed in a way that it is capable of detecting a duplicate payment and rejecting it. This will ensure no user will have to pay chargebacks.
Wrapping it up
A crypto wallet must be designed to be capable of hiding all the complexity behind it. But that requires precise and deep knowledge of web service development, networking, databases and cryptography solutions. Antier Solution and the team of 300 developers have put in years of expertise in the white label solutions which makes it quick and easy to develop a feature packed crypto wallet.