- Crypto Wallets securely hold a user’s public and private keys necessary to interact with the blockchain network.
- The type of crypto wallets includes; Hot and Cold wallets, Custodial, and Non-Custodial wallets.
- The various steps needed to develop a crypto wallet app are mentioned below.
There are more than 420 million crypto holders worldwide involved in crypto trading, e-commerce, meta verse-based gaming, NFT purchasing, and more. All these hold a crypto wallet, and if you can develop a crypto wallet that provides the best security, user interface, and additional features, you can have a large user base.
What is a Crypto Wallet?
A crypto wallet is your gateway to the blockchain network. Crypto tokens are always moving on the blockchain network, and like traditional wallets, they are not stored in your wallet.
However, your wallet has the keys through which you can prove ownership of these tokens and claim them. There are two keys a wallet stores:
1. Public Key: This key can be called your address which is visible to the whole network and helps receive the tokens.
2. Private Key: This key is the one that helps you claim ownership of some tokens that you have purchased or received. This is to be kept secret and not shared.
- Public Key >> Bank Account Number >> Visible to All
- Private Key >> Password >> For yourself
Types of Crypto Wallets
Based on the use case and your trading type, there exist different types of crypto wallets.
- Cold Wallets: These are offline wallets where the private key is stored physically. These are less sensitive to attacks and can be expensive but highly secure.
- Paper Wallets: Here the public key and private key are simply written or printed on physical paper and stored in a safe place.
- Hardware Wallets: Keys stored on USB or Bluetooth devices.
- Hot Wallets: These are online wallets connected to the internet, and their interface can be a website, desktop, or mobile app.
Custodial and Non-Custodial Wallets
In a custodial wallet, you trust a third-party app and pay them a fee to manage your keys. In non-custodial, it’s just you who is in control of his keys.
Cryptocurrency Wallet App Development
More developers and startups are entering into the business of developing a crypto wallet, which has all essential features and an easy-to-use interface. Before entering the field, the developer must have this basic information:
- Blockchain and Crypto: The developer must have a thorough knowledge of the blockchain network, and its working and be updated with its recent developments. He must understand the volatile nature of cryptocurrencies and the risks involved.
- Standard Open-source Libraries: There already exists open source codes, freely available that can be used for app development. Examples include Coinbase SDK and BitcoinJ SDK.
The step-by-step guide to developing a crypto wallet is:
- Market Research: There already exist hundreds of crypto wallet apps, so it’s intriguing to why your wallet will be adopted. The answer lies in market research which will give you the shortcomings in the present apps.
- Type of Wallet: Determine the type of wallet you need to determine, which can decide your target customers and user base.
- Blockchain and API: Choose the blockchain platform compatible with your wallet. You can choose between Bitcoin, Ethereum, and Ripple. APIs help in integrating your wallet with the blockchain network. Popular APIs include Swapzone, Simpleswap, CoinMarketCap, and Nomics.
- UI and Cloud: The blockchain network is complex, and the simpler your UI, the more traffic it will attract. Choose the cloud computing service provider for hosting your wallet app. The popular Blockchain-as-a-Service (BaaS) providers are Blockstream, Dragonchain, AWS, Factom, Alibaba Cloud, and Altoros.
- Tech Stack: It is needed for usability, functionality, and enhancing the security of your app. The primary tools which can be employed are:
Electron.js, React.js, Node.js, CryptoJS, SJCL, OpenPGP.js
- Build, Release, and Maintain: After having all the resources and know-how, it’s time to start joining resources and building the app. The app should undergo multiple test runs and rigorous security checks before it is released for users. Also, keep updating your app with the latest features to be in the game.
Features To Be Included
- Multicurrency Support: Your app must be compatible with not all, but the major cryptocurrencies in the market. It should be integrated with the real-time price of them and the conversion rates among other data, necessary for crypto traders.
- Utmost Security: Users should not have second thoughts regarding the security of your app. You can include Biometric protection, Multi-layer encryption, and two-factor authentication.
- Key Recovery Options: This could be the secret sauce of your app if you can find an innovative way to recover a user’s lost private key without compromising his security. Most wallets provide backup options for private keys and seed phrases.
Final Thoughts
Considering the numerous cases of data breaches, hacks, and scams, the development of crypto wallets has become a challenging task. However, the increasing market size, and integration of crypto e-commerce, online gaming, and payment channels also promise a rewarding future.