Cryptocurrency is a trendy sector, considered by many to become the currency of the future. Its growth is boosted by the incessant and rapid emergence of new technologies and advanced securities. Alongside this digital currency, cryptocurrency wallets are also gaining popularity. This market is equally enjoying an extensive growth as multiple industries are starting to adopt them, as revealed in a recent study published by Garner Insights.
Data on cryptocurrency hardware wallet is not affected by computer viruses
Cryptocurrency hardware wallets are physical devices that are used to store public and/or private keys in a secure area inside the device. The information stored is equally protected from malware. Most hardware wallets have been designed to hold multiple cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Ripple just to name a few. Cryptocurrency hardware wallets cannot be affected by computer viruses and all private keys are stored offline to ensure safety. Long-term storage is also possible in some wallets. In terms of connectivity, cryptocurrency hardware wallet is segmented primarily into USB only and other types. Some have integrated display while others do not.
Apart from storing the public and private keys, hardware wallets also allow users to monitor their balance, send money and carry out other operations. However, there is no real exchange of coins. Transactions are registered merely by a record on the blockchain: for instance, if someone is sending another person an amount of cryptocurrency, the private key of the receiver’s wallet should match the public address the currency is assigned to for him to be able to unlock the funds. The balance in his wallet will increase while that of the sender will decrease. There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into three distinct categories – software, hardware, and paper. A software wallet can be a desktop, mobile or online model.
Hardware wallets offer a high level of security
Cryptocurrency wallets are designed in various models: desktop, online, mobile, hardware, and paper. Hardware wallets differ from the software ones in the sense that the user’s private keys are stored on a hardware device such as a USB. Even if they are used to make online transactions, once disconnected, the data is stored offline to add a layer of security. Hardware wallets are generally compatible with several web interfaces and can hold multiple currencies depending on the user. To make a transaction, the latter simply has to plug his device to any internet-enabled computer or device. He must then enter a pin, send currency, and confirm the transaction.
Several competitors are entering the market
One of the most popular cryptocurrency hardware wallets is Ledger nano S. It has been designed to store private keys in a secure manner and transactions are conducted inside the device itself. Ledger Nano S supports Litecoin, Bitcoin, Ethereum, Zcash, Ripple, Dash and many other altcoins. A number of competitors have, nonetheless, infiltrated the market such as Giza, Hyundai Pay, Hoofoo Inc, Wisekey, SPI Energy and others.
Article published in From our Experts :
Image : Shutterstock