Modern tech startups are striving to break down the boundaries between the virtual and real world with blockchain technology that is changing our world. Distributed technologies in mobile applications allow today to integrate cryptocurrency payments along with other internet payment options. You can build a bitcoin wallet to suit the business needs or integrate it for use as a payment method.
In this article, we are going to discuss cryptocurrency wallets, their types, benefits, main features, and challenges.
What is a cryptocurrency wallet?
Cryptocurrency can’t be used without a special software program. This kind of program is called a digital wallet. It’s associated with the blockchain and helps perform operations.
According to Statista, cryptocurrency wallets reached over 70 million wallet customers at the end of March 2021.
Cryptocurrency wallets allow customers to buy, sell, borrow and keep track of the number of bitcoins and other cryptocurrencies in their portfolios. These crypto wallets are a piece of software that stores records of customers’ transactions, including the number of coins they own.
Most cryptocurrency wallets support Bitcoin and Ether, the two widespread digital currencies. However, with the growth in the number of altcoins, many desktop wallets support various cryptocurrencies nowadays.
The bitcoin wallet transaction is based on asymmetric key cryptography, which uses two types of keys — a public key and a private key.
When someone sends bitcoins to one wallet address from their own, they transfer ownership of the coins to the recipient’s wallet address. The transaction is saved as a transaction record on the bitcoin blockchain and balance changes will take place in the respective bitcoin wallets.
Advantages of crypto wallet apps
Crypto wallets allow people to manage and process any digital cryptocurrencies. Below we listed the reasons why bitcoin wallets are so profitable and comfortable:
- Privacy
The personal data of the wallet’s owner is safe and protected.
- Decentralization
No intermediaries are needed to communicate.
- Simplicity
No borders, no time limits. Transactions are processed fast and 24/7. Moreover, processes are rather simple. That’s why it’s a perfect option for cross-border trades.
- Anonymity
All the data is encrypted. It means that even knowing the wallet address, it’s impossible to find out the recipient.
- Cost savings
Transaction fees are less due to automation and the absence of human errors.
- Trustworthiness
There are no financial regulations to follow. Thus, running a business becomes easier.
- Transparency
Crypto wallet apps offer customers the highest level of financial transparency.
How to build a bitcoin wallet?
Now it’s time to move on to the main stages of Bitcoin wallet development. The first thing you should know is that there are two options: you can use ready-made templates and a set of tools to create an application, customizing it to your needs, or develop your wallet that will ideally fit your requirements from scratch.
Creating a custom wallet application
There are few open-source standard libraries available on the market. They can be used as a basis for your future app. The standard library provides the necessary functionality, configures the wallet for blockchain, and executes financial transactions.
Stages of developing a cryptocurrency wallet application
1. Installation
Download the API from the respective site
2. Create
Click the corresponding button in the menu to create a new wallet.
3. Setting
Provide your wallet name and set up permissions for outgoing and incoming transactions.
4. Integration
Select the third-party programs that you need (for example, to check the balance or create an address) and integrate them with your wallet.
Developing Bitcoin wallet apps from scratch
The other variant is to create your project from scratch. Bitcoin code is open source and free. So, it’s not a problem to find all the standards and create an independent application that fits personal preferences and business needs. This kind of development is more difficult and expensive, as it requires more time, effort, and knowledge. However, a custom application is always more valuable as it is perfect for all needs.
Read more: https://code-care.com/blog/cryptocurrency-wallet-app-development/
