Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Wallets => Topic started by: Goldlife on May 09, 2021, 07:20:52 PM
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Cryptocurrency wallets store secret keys used to digitally sign transactions for blockchain distributed ledgers, but their future goes far beyond being just a keeper of cryptocurrencies. They could one day represent your professional and financial status, or even your personal identity.
A cryptocurrency wallet is a piece of software that keeps track of the secret keys used to digitally sign cryptocurrency transactions for distributed ledgers. Because those keys are the only way to prove ownership of digital assets – and to execute transactions that transfer them or change them in some way – they are a critical piece of the cryptocurrency ecosystem.
[ Further reading: Blockchain: The complete guide ]
Better known as "crypto wallets," they are like the keys to the blockchain car. Without those keys, the car won't run. And without them, there would be no way to prove ownership of a digital asset - anything from a bitcoin to a token representing some kind of asset..
What a crypto wallet does
Not only does a crypto wallet (or more generically, a digital wallet) keep track of encryption keys used to digitally sign transactions, it also stores the address on a blockchain where a particular asset resides. If the owner loses that address, they essentially lose control over their digital money or other asset, according to David Huseby, security maven for the Linux Foundation's Hyperledger Project.
more info: https://www.computerworld.com/article/3389678/whats-a-crypto-wallet-and-does-it-manage-digital-currency.html
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There are different types of wallets in the cryptocurrency world. Crypto wallet keeps your private keys- the password that give you access to your cryptocurrencies safe and accessible along you to send and receive cryptocurrencies like bitcoin and Ethereum. Software wallet, hardware wallets These are used as cryptocurrency wallets.