The cryptocurrency Ethereum (ETH) and its technology blockchain They have become very popular in recent months, as they host much of the NFT ecosystem, and Ethereum wallets are one of the fastest growing, with their current market capitalization exceeding $ 3.2 million.
The purses or wallets is a platform in blockchain that allows users to store cryptocurrencies such as Bitcoin, Ethereum, Litecoin, among others.
You can also carry out transactions in cryptocurrencies or convert them to local currency, according to the needs of each client.
The growth of Ethereum is such that today August 22 surpassed the 214 thousand validator mark, at the same time a total of more than 7 million ETH was posted in staking in Ethereum 2.0 contracts. At press time, Ethereum has a market capitalization of $ 3.2 billion, according to CoinMarketCap.
To discuss the matter, Blockchain Academy Chile (BAC) through Cristóbal Pereira had the collaboration of an important actor within the Spanish-speaking Ethereum (ETH) ecosystem:
- Esteban Miño, Mobile Engineer at Rainbow Wallet.
BeInCrypto as media partner has covered the event in which various topics have been touched: “The strange world of Ethereum wallets”, where the advantages of wallets, their usefulness, functionality and even some security tips are discussed.
An approach to Ethereum wallets
Creating a wallet is free and the user only needs to configure their account, provide their email and a 12-word “master” password to manage your information.
Some of the most used wallets on the market by Ethereum users are: Guarda, MetaMask, Mist, Jaxx, MyEtherWallet, Coinbase, Exodus, Ledger Nano S, and Trezor.
Esteban Miño explains from his experience the functionality of the wallets:
“ETH accounts contain your identity and information with purchasing power. Suppose there is a master key that can open all the locker doors, that is, a locksmith can make a key for each drawer. It’s called Seed Phrase and it has 12 words. They can be different seed phrases, where the private keys are derived from them. If you give those keys to someone else, they will have access to your wallet ”.
Wallets are powered by technology blockchain, where users can send a request to another party for a specific amount of cryptocurrencies and the system generates a unique address that can be sent to a third party or converted into a code, password or key, which contain financial and user information.
Ethereum became very popular, thanks to its technology blockchain served to create the non-fungible tokens (NFT) as a single and indivisible digital asset. Although not all NFTs use Ethereum, the truth is that it is the most popular cryptocurrency today.
On the expansion of ETH wallets, Esteban Miño explains:
“The wallets allow you to interact with decentralized apps that work like Instagram, where you have the wallets. The way to interact is by installing the app. It can be used in Uniswap, where you connect and notify you if someone else wants to enter your account, and if you allow it, you can make a transaction, while asking for your authorization for the transaction again. There are other types of accounts where there are more keys for a locker, but all are needed to open it. They are called smart contract, where the four keys are needed ”.
The Mobile Engineer at Rainbow Wallet also provides some security tips:
“It is advisable to keep the keys on paper, the old-fashioned way, another option is to save it on a USB memory stick and since you can encrypt them it is difficult for them to steal your assets. With extensions, where the private key and the seed key converge. Although the apps are simple, you are exposed to your information being stolen. Another way is by mobile, where security is higher, although a malicious app could compromise your data. I do not recommend web wallets because your data is stored on a server, which could be hacked “.
Recently, the crypto ecosystem made world news, after some hackers managed to divert 611 million dollars of different cryptocurrencies from a financial network in blockchain called Poly Network, which generated reasonable doubts from experts and users about the vulnerabilities in the wallet code.
In this regard, Esteban Miño issues some safety recommendations:
“I recommend that you keep your keys in different places. Externally-owned are the accounts that one has with the seed phrases and private keys. Save your seed phrase, it is the most important thing. Never share it, and two, take care of your private key. You must be careful of the platforms that promise you returns of 50% per year or more, because in return you delegate your information and security. Run away from scammers or scammers who promise to bail you out, never give them your seed phrase. You must watch the addresses where your money is sent, the origin, destination, the dapps, everything ”.
Finally, Esteban Miño talks about the MetaMask interface and explains its popularity and that, Despite being a revolutionary tool, it is necessary to understand some security aspects:
“Large users or companies use MetaMask to correctly choose their wallet. However, you have to remember that many private ones derive from your seed key, and from there you have different accounts. You can have 20,000 accounts, but if the seed phrase is stolen they will steal everything. This is how Metamask works. The seed phrase is the originator of everything else. And even some hackers might try from a app decentralized that the user signs a transaction that goes to another user that you are not sending. In MetaMask they cannot enter directly to rob you, that hack should go through the base code. It would be too complicated a type of hack, but it is a possibility. That is why it is important to read before each transaction ”.
The post Ethereum (ETH) Wallets: Advantages, Utility and Functionality was first seen on BeInCrypto.