Cryptocurrency came into play back in 2009. Now almost 12 years later, it has become a commonality. And to function efficiently in the cryptocurrency landscape, a secure and protected wallet, just like a regular leather wallet or purse, is required. If fiat currency needs to be kept safely, why not cryptocurrency then? It’s quite obvious that cryptocurrencies like regular currency do not have a physical form. That’s why crypto wallets are a piece of well-designed software consisting of digital addresses and public and private keys.
Several crypto wallets and plugins are now functioning effectively in the crypto space, but nothing seems to beat MetaMask – the Ethereum based wallet that almost everyone familiar with blockchain and the crypto world use. At the time of writing, MetaMask has over 1 million active monthly users, topping the charts in countries like the USA, India, Nigeria, and the Philippines. MetaMask is the go-to choice for traders all over the world. Keep reading to know more about this distinguished wallet and how you can launch something similar and have a taste of what it’s like to be successful.
What are crypto wallets?
As the name suggests, crypto wallets are employed to securely store and transfer cryptocurrencies for their trading, selling, and buying needs. In other words, they are the keys to the blockchain car. With a crypto wallet, users can prove ownership to digital assets like Bitcoin, other tokens, etc. The blockchain, being the giant accounting ledger it is, has a record of every single transaction that has taken place.
Each user will have public and private keys to access and process transactions within the blockchain. The crypto wallet helps them keep track of their encryption keys and stores their address on the blockchain where the user’s storing their crypto assets. Loss of the address or the sensitive key information will inevitably lead to loss of control over their digital assets as well.
Types of crypto wallets
Broadly there are two types of crypto wallets – Hot and cold storage wallets. But they can be classified furthermore. Take a look at this brief introduction to crypto wallet types –
Hot and cold storage wallets are also known as hardware and software wallets. Hot wallets are directly connected to the internet, more specifically to a service like Coinbase. It supplies online wallets for users and can be managed locally on a user’s computer or mobile device.
Cold storage wallets, on the other hand, are downloaded and used offline on hardware like a USB or a smartphone. An interesting feature of cold wallets is that they can be bought as devices with the wallet already installed in them.
Desktop wallets are to be used by downloading them to a specific device like a laptop or a PC, offering excellent security and convenience. However, these wallets are prone to hacks if the device has been compromised.
Mobile wallets are those that users download and use on their mobile devices. A notable advantage of these wallets is that they can be used in retail stores and a QR code.
Web or online wallets are renowned for the level of convenience they offer users, but the catch is that they’re the least secure. Since the funds will be stored in the exchange online, a hacker who gets through the central server will access all your funds.
Paper wallets, as ludicrous as the name sounds, are surprisingly one of the most secure ways to maintain and use a wallet. The user simply needs to download and print their public and private keys and use them to log in to a web wallet. No other person or server will have access to these keys but the user.
MetaMask – what does it do?
Simply put, MetaMask is a wallet for your browser. It is essentially a browser plugin or extension for your browser that makes it accessible for users to communicate with the blockchain and, in this case, the Ethereum Blockchain, making MetaMask an Ethereum Wallet. It must be noted that users can store ETH and other ERC-20 tokens in this wallet, which can also connect to dApps.
MetaMask allows users to store their public addresses and private keys, paving a way to access other Decentralized Finance and its applications. Ideally speaking, it turns your everyday web browser into an Ethereum browser. MetaMask runs these on their servers without the user having to run all the Ethereum software by themselves. It makes transactions as simple and intuitive as possible.
Installation of the MetaMask wallet – Explained
As intimidating as it seems, MetaMask is quite easy and accessible to use, even for amateurs entering the crypto space. Here’s how it usually works –
- Using either a Google Chrome or Firefox browser, users can head over to the MetaMask site and download the extension for their browser
- Once this is done, click on the ‘Get Started’ button can be pushed to initiate the wallet creation process
- The user will then have to click on the ‘Click Wallet’ button to begin. This is usually followed by the creation of the password.
- The creation of the seed phrase is next, where users will have to note down their seed phrase securely since it’s vital for the recovery of the wallet if it goes MIA
- The Backup phrase is then saved. This leads to the final ‘All Done’ step, which concludes the process
The workflow of the MetaMask wallet
Just to have a rudimentary understanding of the MetaMask extension wallet, let’s take a look at how transactions can be processed through the wallet.
To process transactions,
- Users will simply have to click the ‘send’ button to begin with
- The recipient address is then typed in, followed by inputting the number of funds the user wants to send
- A transaction fee must then be selected. This option can also be manually adjusted by easily changing a few settings in the Advanced Options
- This gas fee selection can be aided by either opting to refer to the ETH Gas station or a similar platform
- The user will then be prompted to click ‘Next’, which will direct them to a page where they can either confirm or reject a transaction
Benefits and advantages of using MetaMask
- The MetaMask wallet is quite popular in the crypto and blockchain ecosystem, which has garnered a lot of attention like bees to honey
- With this one plugin, users can effortlessly access a wide range of Dapps the DeFi space has to offer
- The hassle and anxiety that comes with remembering and safeguarding private keys have been made obsolete since users just need to remember the seed phrase to login and maintain their wallet
- Users need not go through the cumbersome process of downloading the entirety of the Ethereum blockchain into their devices to access it. With a wallet like MetaMask, they can save a ton of space
- Since the Dapps are integrated with the wallet, interacting with it has become much more accessible and user friendly. Users can easily send and receive Ether
What problems does MetaMask solve?
The Ethereum ecosystem can be a confusing place, especially for novices. And downloading the entire Ethereum network onto one’s system is unnecessary and hard, more so because accessing Dapps requires full Ethereum node download. It is complex and exacting, but the MetaMask wallet makes it easier. Moreover, MetaMask allows for using Dapps simply through a browser like Chrome.
Uses will have full control of their account rather than relying on an external source. Permission and authentication from external servers are unnecessary.
Yep, you read that right. Thanks to the advancements in blockchain and software technology at lightning speed, developing and launching a crypto wallet like MetaMask is now a reality. At Blockchain App Factory, we’ll help you do just that. Equipped with the latest tools and the right team of engineers and developers, we can help your business in the cryptocurrency sector be a resounding success with our wallet like MetaMask development.
Having developed and launched a variety of protocols from crypto exchanges, DeFi platforms, Smart contracts to Lending and borrowing platforms, legal consultancy services, and tokenization, we’ve seen it all. What more, our solutions are completely scalable and customizable because we understand how important brand visibility is. We’ve got a range of tricks up our sleeve that guarantees high profits in the crypto sphere. So, schedule a call with us today, and we can begin creating a wallet like MetaMask for your venture.