Cryptocurrency Wallet Development Services
Cryptocurrency wallet is a system that keeps open and private keys of its users and gives them an opportunity to manage their finances due to these keys and comfortable interface. It provides cryptocurrency transfers with the use of blockchain. It also maintains interacting with decentralized applications to ensure safe and secure transactions.
It is an important part of all crypto transactions just because it cannot look like simple sending of crypto from one gadget to another one, this process is much more complicated. Generally speaking, it can be described as signing of the transaction by the user’s private key when sending tokens and then its translation to the blockchain. And after that the network does a range of machinations by itself. As a result, a user gets an absolutely safe transaction.
There are also different types of wallets that have diverse working principles. Thus, there are two main types: centralized and decentralized wallets (or DeFi – decentralized finances). Simply it can be described like that: centralized wallets have a third party, center for all the transactions while decentralized make transactions directly from one user to another.
By the way, it is also important to mention that here “wallet” does not directly mean what we used to know by that word. Crypto wallets do not store cryptocurrency. They just display the balance, keep private keys and give its users the opportunity to make transactions.
So if you are in the crypto theme a crypto wallet is a must have for you. And cryptocurrency wallet development services may help you with it. If you lack knowledge about crypto wallets and are lost in all the different types of wallets, it may be efficient to appeal to multi cryptocurrency wallet development where cryptocurrency wallet developers may consult you and help to choose a best suiting one. If you already know more about it, you can straight away contact concrete crypto wallet development services, for example Solana software development.
Possible Issues With Existing Crypto Wallets in Use Now
Probably you already have a crypto wallet that does not follow a decentralized system and it even works pretty good. But centralized wallet structure confines the scope to storage and even some crypto transactions. They are too limited while decentralized wallets give you speed, transparency and safety. Decentralized network gives you nearly endless opportunities.
So, take a look onto the list below to learn more about possible issues you may face (or maybe even already faced) when working with a traditional crypto wallet.
- Enhanced risk of identity theft. The first and the worst issue you may run into is your private data theft. It may appear because all your data is sent on one device (center) every time and there are a comparatively low amount of sides involved in the process so it is easier to steal your data. In the situation of the decentralized system the data moves through devices randomly so it is impossible to track it and steal as a result.
- Risk of infrastructure downtime. As there is a center that manages all transactions you depend on it a lot. If there appears some problem you will not be able to do transactions till it will not be fixed. So it is a serious issue that can ruin your plans and terribly influence your business.
- Risk of government shutdown. This issue is also connected with the centralized system. As there is a center for all your transactions you are too dependent on it. And if it decides to shutdown you will lose all your data or need to think about its replacement.
- Limited investment opportunities. As it was already mentioned before, traditional crypto wallets have limited storage and transactions. Evidently, it is also connected with a centralized network: as your data is kept in one place this place has its limits. Of course, there is no such problem with decentralized wallets.
DeFi Crypto Wallet vs Traditional Crypto Wallets
In the previous part we have already mentioned a lot of differences between traditional crypto wallets and decentralized crypto wallets. To sum up, check the table in which we compared them to finish your image of each and choose correctly your cryptocurrency DeFi wallet development company.
|Traditional Crypto Wallets||DeFi Crypto Wallets|
|Centralized trust so that the owner is a custodian||Decentralized system so that a user is a custodian|
|All responsibilities is on the product owner||Gives its user total control on their assets|
|Product owner keeps private keys||Only user has its private keys|
|Third party is necessary for all transactions||No third-parties at all|
|Uses KYC protocol that is unsafe for the private data||Use KYT protocol instead of KYC that protects personal data|
|Has limited tools and cryptocurrency||Has no limits|
|Most likely cannot integrate with most of the DeFi platforms||Can be easily used with other DeFi platforms|
|May not support protocol-based currencies||Support all currencies (assets based and protocol-based)|
Cryptocurrency Wallet Development Services
If you are into the idea of addressing a crypto wallet app development company it would be useful to know the main services they can provide for you. So we prepared a list of blockchain wallet development services with the description of each.
- Web wallets
These wallets are in the web network so that to access it you should not download anything. But to access you should use your private key and to recover it you should use seed phrases. Such wallets maintain various tokens, for example ETH and Ethereum. The only issue is that you should keep your eye on your private keys as it is the only thing to access your wallet and manage it.
- Hardware wallets
Unlike the previous type these wallets are physical devices to keep data, for example a flash drive. This type is comparatively more secure as it ensures total fortification from hackers. It uses RNG for creating open and private keys and then hides them in the gadget itself that is not connected with the Internet. Such a method provides high protection from online assaults.
- Mobile wallets
Crypto wallet app development also suggests such a type that is adapted for smartphones and looks like a simple mobile app. It will be especially efficient for users that need to manage their finances constantly and do transactions easily at any time. Mobile wallets for mobile users:) To ensure security of the transactions such apps use QR-codes and smart contracts built on Ethereum that are controlled by users. This type is probably the most applicable in real dynamic life.
- Desktop wallets
Wallets of this type can be installed on any computer system, for example desktop or laptop. After that they are connecting the web to do all transactions. In everything else its principle of work is similar to other types.
DeFi Crypto Wallet Features
Now let’s take a precise look at the DeFi crypto wallets and talk about their main features. As it gives a really wide range of opportunities and a high level of security, it deserves our attention. It has a lot of beneficial features as well, so here they are:
- Support for multi-assets
It supports such tokens as BTC, ETH and ERC20. It also ensures altcoins and tokens integration that you may need. It gives the freedom of storing and managing the assets.
- Automatic scanning of wallet address
Scanners for the QR-codes let the automatic scanning appear thus making it easier to get access to the wallet and start a crypto exchange.
- Automatic prevention of duplicate payments
Due to its automatic detection feature the system prevents all duplicate payments and chargebacks. What is more, it can even recognise if it is a fake and risky payment and deny it for that reason.
- NFC (near field communication) support
Due to this feature you can do transactions faster and easier. It connects with the other users in your area so that you can get a wallet address fastly and do your transaction at the same time.
- Quick payments
Its principle of work with all features contributes to the high speed of all provided payments.
- No third-party custodians
As it was already mentioned before, there is no third-party side in the DeFi wallets that makes it more transparent and safe. Less sides in your transaction, less risks!
DeFi Wallet Development Process
Most likely all benefits you will receive from creating a DeFi crypto wallet made you willing to address crypto exchange development services and find a blockchain wallet development company. But there are still plenty of various types and approaches. When choosing a blockchain wallet app development you never know if you will benefit from BSC token development, for example, or something else. But the good news is that the process of development is always the same.
1. Designing the architecture. It is the first step where you should choose the placement for your wallet. It can be placed in-house, in the cloud or you can use a combination of these two ways. Also it can be a private or public blockchain. It is important to correlate chosen methods with the needs of your business.
2. Choosing the consensus algorithm. On this step you should decide in which way network members will recognise the transaction. Existing methods include proof of stake, proof of work, Byzantine fault-tolerant and others.
3. Selecting the platform. Chosen platform will correlate with your needs, requirements and budget.
4. Designing UI. On this step you should take care about hiring experienced designers to your project because here it is important to build a strong and comfortable interface.
5. Testing and deploying. Now your wallet is nearly ready to use! It just should be tested to find possible mistakes and defects.
Mobilunity Is a Reliable Provider of Cryptocurrency Wallet Development Services in Ukraine
Mobilunity is a Ukrainian company with more than 12 years of experience in providing IT services. And if you are looking for a cryptocurrency development company it may be a great solution for you!
Our specialists have necessary specialization and experience so that you can trust us. Our working model is totally built on mutual understanding and trust because we value our clients. Most of them were addressed for one project and stayed after that so that we work together for years now. And we think that it is the result we can be proud of!
So if you want to cooperate with a crypto wallet development company with deep experience and expertise, we are here for you!