What Is a Web3 Wallet & Should You Use One?

#web3 broadly elucidates the fact that you are your own boss. To put that into perspective, right now you are storing your money in bank accounts which are backed by the government. Meaning, if the bank defaults, you can run towards the government for help. It has its own share of pros and cons which are beyond the scope for this topic. Juxtaposing the same with the Web3 space, you keep your valuable assets on any specific exchange.?

But after exchange runs like FTX, Mt. Gox and many smaller ones, the apprehension builds up gradually and you need a better narrative for Internet of ownership. That’s where Web3 wallets come into the picture. If you are developing your NFTs via NFT development companies and you want the best way out to store your NFTs safely, a Web 3 wallet is a great option to pick.?

What are Web3 Wallets?

A #Web3wallet is a fully non-custodial way of storing your assets like #nfts and cryptos either in a hot wallet, which is non-custodial or a cold wallet. These wallets have a clean #uxui to provide a better onboarding and adoption experience.?

How Do They Work?

These wallets use asymmetric cryptography that consists of a public key and a subsequent private key to access the wallet. Generally, it is a 12-digit seed-phrase which is placed in a specific order and you need to input those details in the same order in order to access the wallet. However one should be cautious that if you forget the seed-phrase, there’s no way to retrieve the assets stored in the wallet. To use the Web3 wallet, you need to connect your hardware device, in case you are using the hardware wallet, and start transacting using the public and private keys to sign transactions.?

While using the hardware wallet, you shall be online for as long as you are connected to the Internet, post that, your wallets remain offline and you are in full control of your funds. Hence even if an exchange goes rogue, you are still in possession of your funds because you have your own private keys that you can use to restrict or sign transactions. However keep in mind that transactions are irreversible. So deal accordingly.?

Should You Use a Web3 Wallet?

Indeed, after seeing vulnerabilities in the space, it is a good approach to keep your assets in your own hands. A Web3 wallet gives you that advantage where you can keep your private keys offline to prevent any unforeseen vulnerabilities. At the same time, after seeing exchanges playing along with user’s sentiments, it is highly recommended that you use Web3 wallets in any form, be it a hardware, hot wallet or paper wallets to store your cryptos.

You can also go for HD wallets which shall further provide you with security by keeping your public keys anonymous, while you handle all the operations of multiple public keys with a Master Private Key. Most enterprises are going for HD wallets. Blockchain app development services can help you develop your own software wallets if you so wish.?

www.sdnatech.com