Why crypto wallets are the future and how they are changing the way we interact with the web

Cryptocurrencies have taken the world by storm. The future of money has arrived. From Bitcoins meteoric rise to fame to dogecoins infamous growth, cryptocurrency is the new buzz people are talking about.

Cryptocurrencies have taken the world by storm. The future of money has arrived. From Bitcoins meteoric rise to fame to dogecoins infamous growth, cryptocurrency is the new buzz people are talking about.

In the last decade, the potential for cryptocurrency has grown, and many who’ve invested in it have reaped the rewards. Tesla, for instance, added a net cash flow of $1.2 billion related to Bitcoin to its bottom line in its Q1 2021 earnings because of the major investment the company made in Bitcoin (an excerpt from SUBTA.)

Digital currencies are rapidly changing the way we look at money and investments, so it becomes even more important to understand how they can be protected and used to do more than just transactions. Enter Crypto wallets.

Crypto wallets today have evolved to do more than just your crypto and NFT (Non-Fungible Tokens) transactions. One of their most important and popular use cases lies in their ability to be used as a way to login/access the latest web3 world of decentralized applications, or dApps.

But first, what is a crypto wallet?

In order to understand what crypto wallets are and how they work, we will first need to understand what a typical crypto transaction looks like.

What does a crypto transaction look like?

A concept of public and private key is utilized here. 

Basically, in order for someone to share a crypto coin or NFT with you, they need to know your public key which is essentially a long string (e.g. 0xDC25EF3F5B8A186998338A2ADA83795FBA2D695E). Think of this as the bank account number that we use in order to transfer money to someone.

The private key can be used on any wallet for accessing cryptocurrency. If a public key is what you need to know to send crypto to someone, the private key is for you and only you alone to know. This is because if a person knows your private key then that person can literally use it to send money from your account to their account. Just like if a person knows the login credentials to your net-banking account.

So where does a crypto wallet come into picture?

The crypto world is based on blockchain and in the blockchain world, there are many different ledgers which lead to you having multiple pairs of private and public keys in order to do various kinds of transactions. So crypto wallets allow us to have a simple way of managing these sets of private and public keys and helps us track our transactions.

So basically, a crypto wallet stores the keys and addresses of wallets that live in the blockchains underlying each cryptocurrency.

Types of crypto wallets

Crypto wallets can be broadly classified into two categories: Hot and Cold.

Hot wallets store your public and private keys online, whereas Cold wallets store them offline.

Hot Wallets

These are software-based wallets. These wallets are connected to the internet. Famous examples of these can be Coinbase, MetaMask or Phantom. But since they are connected to the internet they are still vulnerable to cyber threats. But the advantages outweigh the risks as wallets today are more than just transaction devices. We will discuss one of the key features shortly.

Cold Wallets

These are probably the safest way of storing your public and private keys. Cold wallets are of two types: Hardware and Paper-based.

Hardware wallets are basically USB sticks that store your keys. These have a very secure system of entering into them. A 24 key phrase system is needed to enter into a system at Ledger live.

But the only drawback being that if you lose the paraphrase you can kiss your cryptocoins goodbye. Also, these devices don’t come cheap.

In paper wallets, all your private and public keys are printed on paper. They can also have QR codes to facilitate transactions. These are perhaps the safest of all only if you don’t lose the paper somehow.

The main use case of cold wallets is for using them to secure large amounts of crypto currency. Whereas hot wallets can be used for transactions and other features.

As an individual, you can choose a combination of wallets to manage your assets. This way you can enjoy the perks both provide and minimize the risk of losing your money.

Logging in with wallets is the future

To appreciate how great crypto wallets are, let us understand how login is taking place in today's web2.0 world.

How login is taking place at present and why is it bad

Let’s take login with Google for instance. Whenever you want to access a service you will first need to log in to your account. But this is actually an exchange. Google in return for its service has access to parts of your data and can use it for various reasons.

And this is the main flaw, as it is in essence an exchange of your privacy.

Why are Crypto wallets better?

In a decentralized world, you are in control of your data. This means that it is you who decides how much data you want others to have. In essence, you can decide your identity and that is all anyone would know. This is because blockchain has no censorship by design.

Blockchain can only keep track of transactions that have taken place, it does not keep track of with whom or who is having the transaction.

So in this way when you use crypto wallets to login into a service, you don’t exchange your privacy. 

How can you use a wallet to login to Slik?

What is SlikSafe?

SlikSafe is a secure place to store all your NFTs, TAX documents, and generally for any file that you find important or sensitive. We secure, replicate, and store your files in a way that only you can retrieve that data whenever you want, from wherever you want.

With end-to-end encryption, Slik Safe gives you unparalleled control to all your files, since the files are encrypted using your personal passphrase, before it leaves your device. It is like your own digital wallet, but for your personal files.

Passwordless Login

You can login to Slik directly with your Metamask or Phantom wallet and immediately begin storing and collaborating on your files that are all encrypted and decentralized. 

The following are the steps in which you can login with your crypto wallet to Slik. (We will be using Phantom for this, but you can use MetaMask too, the steps are very similar to the one shown here):

  1. Visit SlikSafe and click on the Get Started for Web button.

2. You will be prompted to the login page. Click on sign up -> Continue With Wallet

3. Next, simply connect your phantom wallet and follow the instructions to authorize Slik to connect with your wallet.

After you’ve successfully connected your crypto wallet you’ll now be able to backup and share your files with the highest privacy and security!

Summary

Crypto wallets are now more than just your usual DeFi wallets and with the advancement in the web3 world, we’ll see more of their best use cases.

We are on a mission to give people a world class experience, without compromising on privacy and ownership of data. From the files that you share online to the photos they take on their phones — we believe your data is yours alone.

Visit SlikSafe today!

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