The use of Blockchain based cryptocurrency wallets enables crypto users to store, send and receive cryptocurrencies securely and efficiently. As the number of cryptocurrency enthusiasts and traders increases, the use of cryptocurrency/blockchain wallets to protect users’ crypto money becomes inevitable. As a result, crypto-fintech enthused businesses have started incorporating Blockchain based crypto wallets as an inherent part of their business. Essentially, there are various types of cryptocurrency wallets known as web, mobile, desktop, hardware, and paper wallets. Among these types, mobile wallets, web wallets, and hardware wallets are the most popular. They enable users to store, transfer and check the digital currency as well as facilitate them to exchange cryptocurrencies with other users. Also, explore what is the importance of cryptocurrency development for business efficiency. Now, let’s explore the essentials that you need to take into consideration for feature-rich cryptocurrency wallet development.
A crypto wallet requires no KYC registration for users to access their funds. Also, with security algorithms, it converts users’ private keys into 12-word mnemonic phrases (password) that they only own to use for transactions. Thus, it ensures the security and privacy of the transaction.
A crypto wallet supports multiple OS (operating systems) and platforms like iOS, Android, Windows, and Linux. It provides users a highly-secure and flexible infrastructure to access their crypto wallet on any device, anywhere.
Crypto wallets that come integrated with QR code scanners enable automatic scanning of wallet addresses (Public Keys). It simplifies the exchange of cryptocurrencies in a single click.
A crypto wallet should provide native support for cryptocurrencies like Ethereum, ERC20 tokens, and others. It must have the provision to facilitate seamless integration of altcoins and tokens as per business requirements.
The integration of NFC into a crypto wallet accelerates the exchange of digital assets between crypto traders. So, when a sender clicks the NFC tag on their crypto wallet, it automatically fetches the public address of a buyer’s wallet address to execute the transaction.
A crypto wallet must be reinforced with security features to establish a secure infrastructure to send, receive and store multiple crypto assets.
A wallet must have the mechanism to automatically detect duplicate payments and deny them to prevent any chargebacks.
If a crypto wallet has a self-explanatory interface, it advances the easy of use for both beginners and experienced cryptocurrency users.
With real-time swapping functionality, wallet users can seamlessly exchange one crypto asset for another, without requiring to use any fiat currency as an intermediary.
There are numerous other features that a crypto wallet should comprise. Visit our cryptocurrency wallet development services to explore more.
Two-factor authentication, also known as 2FA, is a method to ensure the authorization of a person to get access to the wallet. So, even if someone has the password, they still need to provide a second-level authentication. Put simply, the authentication is essentially a code sent to the respective user’s phone that they need to enter into a sign-in field to access their wallet.
Usually, a crypto wallet with a single-key address means only the user that holds the corresponding private key can have access to all funds. Managing a single-key address is quite efficient than a multi-sig wallet, it does deal with security challenges. Additionally, single key access enables a single point of failure. Cybercriminals constantly develop new phishing techniques to break in through a single point of failure. Moreover, a crypto wallet with a single-key address is not preferred for medium to large businesses dealing in cryptocurrencies. On the other hand, multisig wallets provide a solution to address these challenges. A multisig wallet enables a user to transfer funds only after obtaining multiple signatures from defined entities.
The encryption of the wallet with securities like AES-256-CBC ensures an additional layer of security by protecting it with a passphrase. Further, with a passphrase, wallet users lock their funds from being spent. Even if attackers have the device on which the wallet is installed, they can’t do any activities unless they have access to the passphrase
A DDoS (Distributed Denial-of-Service) is a type of attack that hackers use. They make DDoS to disrupt authentic users’ access to the network or the web resource. Typically, they overload the target with fake traffic or disseminating malicious requests. It crashes the target resource entirely. At Oodles, a crypto wallet development company, we implement DDoS mitigation systems like anti-DDoS modules to ensure the security of any type of wallet.
Hackers make phishing attacks, a practice of misguiding users with fake real-looking content as web content, e-mail, or social media content. The integration of anti-phishing software is ideal in such cases. It safeguards cryptocurrency wallets from phishing attacks. When integrated with a web browser and email client as a toolbar, it shows only the real domain name for the website. Also, it prevents fraudulent websites from masquerading as legitimate websites.
To increase the visibility for the network admin, especially in multisig wallets, the activation of notifications for every action and activity like logins, transactions, trades, and profile and KYC status update is essential. It enables a wallet admin to keep an eye on every action and detect any fraudulent activity instantly.
Cryptocurrency wallets are also known for their slow transaction speed. At Oodles, the development of a crypto wallet with the lightning-fast network, sidechain, and batch processing significantly decreases transaction processing speeds.
The key issue with crypto wallets is security threats and hacks. Oodles implements standard encryption and decryption mechanisms as well as develops both hot and cold wallets to bring chances of hacks from minimum to none, among other security measures like 2-FA and DDoS implementation.