How Crypto Wallets Work - and Why Reliable RPC Is a Big Deal

By NOWNodes | NOWNodes | 3 Jun 2025


Crypto wallets are what most people use to store tokens, interact with dApps, and manage their crypto assets. But how do these wallets actually work behind the scenes? And why is the RPC connection so important?

Let’s break it down.

What’s Going on Under the Hood?

A crypto wallet holds your private keys and helps you sign transactions. But it doesn’t actually store your coins- the blockchain does. To see your balances, send tokens, or interact with smart contracts, the wallet has to talk to the blockchain.

It does this through something called RPC (Remote Procedure Call). Think of RPC as the wallet’s way to ask blockchain nodes questions and get answers - like “How many tokens do I have?” or “Can you send this transaction?”

Why Does RPC Reliability Matter?

If the RPC endpoint your wallet connects to is slow, down, or buggy, your wallet feels broken. You might see wrong balances, get stuck transactions, or have trouble connecting to dApps. From your perspective, the wallet just isn’t working - but the problem is actually the RPC connection.

This makes RPC reliability super important for a smooth crypto experience.

Running Your Own Nodes? Not So Easy

Some wallet developers try to run their own blockchain nodes to keep control. But it’s a lot of work:

  • Nodes need constant updates and maintenance

  • You need multiple nodes for reliability and backups

  • Different blockchains require different setups

  • Handling high traffic and attacks takes serious engineering

  • Observability and monitoring are complex

It quickly becomes expensive and complicated.

Why Many Wallets Use RPC Providers Instead

Instead of building and maintaining infrastructure, many wallets use third-party RPC providers. These providers:

  • Handle uptime and maintenance for you

  • Provide fast, global access to nodes

  • Support multiple blockchains under one roof

  • Let developers focus on building better wallet features

  • Offer dashboards and analytics to monitor performance

This means wallets stay reliable and responsive without the heavy infrastructure headaches.

If you’re building a wallet or scaling a Web3 product, NOWNodes offers enterprise-grade RPC infrastructure you can trust – without the operational burden.
We provide:
– High-performance RPC endpoints with automatic load balancing
– 99.95% uptime backed by SLA
– Low-latency responses via global edge infrastructure
– Real-time monitoring, dashboards, and alerting
– Full support for Ethereum, Polygon, BNB Chain, Arbitrum, Optimism, and 100+ chains
– Easy SDK integration and developer-first tooling
Instead of running your own infra, focus on what matters - building a wallet your users love. We’ll make sure it’s fast, stable, and always online.

Final Thoughts

Behind every smooth crypto wallet is solid RPC infrastructure. While running your own nodes sounds appealing, most teams benefit more from trusted RPC providers that handle the heavy lifting.

In the end, a wallet is only as good as the infrastructure it depends on - and RPC reliability is key to keeping users happy.

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NOWNodes
NOWNodes

Leading node infra provider. Access 99+ blockchain networks via Node and Blockbook APIs. Create websocket connections and develop with zero rate limits.


NOWNodes
NOWNodes

Full RPC Nodes & Block Explorers. 99+ most popular blockchain networks supported. We provide educational content on blockchain development for beginners and experienced community members. 👉 nownodes.io 👈 Besides, we do provide free API for up to 100,000 requests. Drop us a line to get yours.

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