How To Build A Crypto Wallet
The cryptocurrency market is booming and investors making huge profits make it look more promising. Thus, it is the right time to invest in developing a cryptocurrency wallet that continues to attract a wider customer base. Just like any other digital wallet, cryptocurrency wallets are also used to send, receive, and store digital assets called cryptocurrency. Thus, they are the type of software/application that makes cryptocurrency transactions easier to track and execute.
However, there are two types of crypto wallets Cold and Hot. Cold Wallets are hardware wallets that store keys in an offline fashion just like a USB drive but can be easily lost or misplaced. On the other Hot wallets are more in trend due to their user-friendliness and better reliability. These can be in the form of Desktop wallets, Mobile wallets, or Web wallets where each one has different accessibility models.
How do Crypto Wallets Function?
The functioning of crypto wallets is based on two fundamental keys – public and private keys. The public key is a type of wallet address that is similar to a bank account number that can be shared with a third party to send and receive digital assets (cryptocurrency). Whereas on the contrary as the name suggests the private key is a hidden or confidential credential that only the user has access to and shall not be shared further. As a result, it acts as a password using which investors/traders can access and trade cryptocurrency. At the time of transacting cryptocurrency, a wallet issues a unique cryptographic address where cryptos are held. Therefore wallet does not hold crypto coins directly they simply provide the link/information in an encrypted manner to safeguard the credentials of the users,
Features of Crypto Wallet
- There are some fundamental features that crypto wallets are expected to offer to their end users to ensure a rich experience.
- Enhance the user authentication either with two-factor or multi-factor authentication.
- Add the QR code scanner for better speed, simplicity, security, and convenience during crypto transactions
- Build an ecosystem that supports multiple cryptocurrencies to give a seamless experience to the users.
- Allow Paper wallet import and push notifications to build a real-time transactions ecosystem
- Offer multiple payment gateways so that users do not feel restricted.
- Providing the optional session logout as the security measure if the server or user identify any potential frauds or scam.
How to Create a Cryptocurrency Wallet?
The increasing importance of cryptocurrency wallets in the cryptosphere is making it necessary to follow the right crypto wallet development strategies.
Blockchain technology is indeed the backbone of cryptocurrency app development. Therefore it becomes important to begin by exploring the world of blockchain and cryptocurrencies. Blockchain is the revolutionary technology that brings the idea of digital currencies to life. The wholesome purpose of blockchain technology is to allow valuable data sharing in the most secure manner.
Generally, cryptocurrencies are open-source and therefore do not require a reinvention of the tools and libraries. The already available libraries and tools such as Coinbase SDK or BitcoinJ SDK can be used for this purpose. Coinbase SDK is the Java-based cross-platform library that helps developers to build cryptocurrency wallets for both Android and iOS devices.
Make the best use of distributed ledger APIs
APIs are indeed the best way to build a feature-rich cryptocurrency wallet application. Precisely, the distributed ledger APIs allow developers to synchronize the crypto wallet with the blockchain environment with great convenience. Some of the best-known APIs in the crypto ecosystem are Coinbase, Factom, and Bitcore. These APIs help to complete the process of wallet creation in a very short time by eliminating unnecessary steps.
Choose the right cloud platform
Selecting the right cloud platform is the most important step. For example, while developing the crypto wallet App development one shall choose BaaS (Blockchain as a Service) and integrate this with the cloud services on the App. BaaS products are generally offered by industrial giants such as Microsoft, Azure, and Amazon. Each of them offers distinct features; therefore the individual choices may vary depending on the project requirements and expectations.
Rely on right technology stack
Without the right technology, it often becomes challenging to expect the success of the crypto wallet app. The Node.js or Angualr.js along with CSS3 and HTML 5 is considered the best combination for creating a scalable crypto web application. However, for building a native Android app Java or Kotlin works better whereas for iOS apps Objective-C or Swift act as the complete game changer. Thus, pick the tech stack wisely considering the type of wallet your crypto project needs.
Consider adding security attributes
At no time can security be compromised in crypto app development because blockchain technology is largely about providing a secure transaction ecosystem. Thus cryptocurrency Apps are expected to have top-notch security which can be done by adding layers of security to the App such as 2FA – Face ID, Fingerprint, and Hardware Authentication. Alongside, there must be continuous security updates to identify and fix the bugs that may give rise to security concerns in the long run.
After the successful strategy formulation, the next step is to put these strategies into action as a crypto wallet App. Understand each feature that the wallet App requires and begin writing the code to integrate them with the database. Keeping the interface user-friendly and attractive at the same time is a must-have. Furthermore, conducting extensive testing before the launch of the crypto wallet is necessary to understand its performance from the end user's perspective.
Half the milestone is achieved by considering all the rich features and building prominent strategies. However, it would remain incomplete if not put to right and timely execution. The fast-paced world does not merely rely on a good idea but also on the right execution time. For this to happen, it’s equally important to understand the nerve of the blockchain and cryptocurrency market. Thus, the Esrot Consulting Labs, the team of Web 3 experts, is the complete answer to all your blockchain and cryptocurrencies-related business concerns.