How Hardware Wallets are securing your Cryptocurrency
Posted By Chandan Lunthi | 01-Feb-2018
Cryptocurrency is now a days a very good resource to invest in, as this is a virtual asset, there is no real proof of having it apart from its wallet address and private key. Wallet address identifies you in public or private blockchain that you hold something related to this. Private key makes sure that you are the correct owner of that wallet. Keeping this two information to the user or into its account blockchain provides some sort of files in .dat or .json or in database format. If they get lost then it becomes really difficult to restore your wealth and proof that you are the correct owner of the wealth.
To some extent, we buy this cryptocurrency from some privately held exchanges which keep your information on your behalf but they charge heavily for that and still, there is always a chance of thieving the information or misusing the information. It is always to keep your information to you and become the owner of its security when it comes to money or wealth. That's where the concept of the hardware wallet and client wallets comes.
These are same cryptocurrency wallets but rather than holding it into servers on users behalf, it is held in user side on their devices. Devices can be any like laptop, desktop or mobile. It makes sure that you are responsible for your money and you need to take care of it. It is safe things as you don't have to trust some other third party to keep your information safe.
But as the normal life, we keep up changing our devices or machines to become more futuristic or maybe in some cases, our devices may meet failure or it may lose, so in that case, we need to keep the backup of all our information like wallet addresses and private key. That can be done using creating some secure code via algorithms or process, but that might take some time because then you have to understand some technology part. So the best solution is to keep your information save in some prebuilt devices which are only meant to keep information, they are called hardware wallets.
Hardware Wallets is a special type of devices which save your cryptocurrency address and private key in a secure manner. They are only meant to this purpose and easily available in the market. The user can keep it like pen drives or in similar shapes.
- Private keys always kept in microcontroller area in encrypted form and can not be taken out as plain text.
- Very protective to virus and worms.
- The mostly open software allows it to sync with its system.
Till now no proven risk factor has been identified, but the user needs to keep it secure and safe.
Types of Hardware Wallets:
There are two kinds of hardware wallets are available
- Not Purchasable
Commercial Hardware Wallet Options:
- Pi Wallet - cold storage
- TREZOR The Bitcoin Safe
- Ledger HW.1 - USB Smartcard Hardware Wallet
- Ledger Nano - USB Smartcard Hardware Wallet
- Ledger Unplugged - NFC Smartcard Hardware Wallet
- BALLET TREZOR clone
- KeepKey: Your Private Bitcoin Vault
- Opendime: Bitcoin Credit Stick
- CoolWallet: The Ultimate Bitcoin Safe
- BlochsTech card: Your user-friendly Bitcoin wallet
- BitLox Bitcoin Hardware Wallet
- Digital Bitbox
- Ledger Nano S - USB Smartcard Hardware Wallet
- Swiss Bank in Your Pocket - Hardware wallet
Not Purchasable Hardware Wallets:
- bitcoin card Megion Technologies-Card based wallet
- BitSafe -
allten/someone42's hardware wallet
- Someone42's original prototype
Hardware offer some decent benefits gives your wallet control to yourself and it always keeps your wealth information only up to you. Hardware wallets offer some very interesting features depending there price and configuration.
We at Oodles have completed some very interesting application based on client wallet and hardware wallets. We are continuously working towards proving more reliable and flexible applications to end user. Write us on firstname.lastname@example.org for more details and about your queries.