Cryptocurrency wallets represent digital apps or physical devices, where one can store digital assets. But unlike your pocket wallet that is used to hold physical notes, crypto wallets don’t literally store cryptocurrencies but the private keys for accessing the public address where your digital coins are located. Crypto wallets have come a long way from the first one invented by Satoshi Nakamoto, a full client that required one to download the entire blockchain history for it to sync. Initially, this wasn’t much of a problem since there wasn’t much to record, but currently, the Bitcoin blockchain is around 250 GB and will require you several days to download.
The functionality of the first wallet was quite limited, even though it supported a few advanced features. On top of sending and receiving coins, there was an address book incorporated, and one could digitally sign a transaction proving they were the owner of a specific public key.
As cryptocurrencies have grown in popularity, so has the need for more dedicated wallets to store these private keys, support transactions, and enable additional abilities. Ten years since the first crypto wallet was created, these apps have become more sophisticated supporting features like Web 3.0, access for dApps, non-fungible token storage, smart contract processing capability, and in more advanced wallets, invoice processing capabilities and identity storage.
Below we will go over a few unique features that can be found within advanced crypto wallets in 2020.
Interacting With Web3.0 Applications
Today we have crypto wallets that are making it possible to interact with applications on Web 3.0, which can be linked to decentralized exchanges and can even process smart contracts. A good example is MetaMask, which describes itself as the bridge that allows users to visit the distributed web of tomorrow using your browser today. The wallet is a browser extension that doubles as a Web3.0 provider and Ethereum wallet. It's supported on all popular web browsers, including Brave, Chrome, Firefox, and Opera. Also, it’s a light wallet, which means it doesn’t need to be fully synchronized with the Ethereum network to work.
Interfacing with Web3.0 apps, DEX and smart contract processing is done through a browser add on which users can download for the browsers named above. This saves them from having to download separate apps to use the wallet.
Settling invoices is another unique feature that has been added on a cryptocurrency wallet. An individual or business can generate an invoice from the comfort of their wallet and send the link to the customer with details of how much needs to be paid in crypto to settle the invoice. DAOWallet is a good example of a wallet that is supporting this functionality. Once the customer receives the link and makes the payment in crypto, the money is deposited in the client's account. Thanks to in wallet instant currency swaps, the crypto is changed into fiat for the convenience of the individual or business.
On DAOWallet, users have access to BTC, ETH, TUSD, USDC, USD, EUR, and BET. The fiat to crypto instant swap and vice versa is necessary to guard users of the wallet against price volatility, thereby helping them use their funds more traditionally. All incoming transactions are converted automatically using the most favorable market rate, and this is key when it comes to stabilizing the price of cryptocurrencies.
Creating Your Own Tokens
Creating your tokens from your wallet is another impressive feature crypto wallets are offering in 2020. Thanks to platforms like MyETHERWallet, a multi-language wallet based on the Metaverse blockchain. Users of this wallet can create their own MIT (Metaverse Identifiable Token) and MST (Metaverse Smart Token) and transact them with other users. The tokens are similar to ERC and NFT tokens based on the Ethereum blockchain.
Another incredible feature of this wallet is the ability to manage your digital identity through its digital avatars. The avatars use unique alphanumeric symbols and allow users to design creative names that represent a Metaverse address. These avatars can be used for authentication on third-party apps.
Other examples of wallets with unique offerings include MyEtherWallet, which is open source, free to use, and accessible through supported browsers. The wallet allows users to swap fiat currencies for crypto and vice versa. The wallet is even compatible with hardware wallets like Ledger and Trezor and offers users of the hardware devices a secure way to access ETH and ERC-20 tokens. Then there is Cryptopay, which supports multiple crypto coins and allows instant crypto swaps without the need to place an order through a crypto exchange.
Above are just a few unique features on offer today within crypto wallets. These features are expected to grow with time as the cryptocurrency space matures, thereby forever expanding the possible use of these software applications.