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- Smart wallets might be able to make it easier for users to use blockchain.
- Vitalik Buterin, has said that this circle regarding Bitcoin can and will provide better and more secure wallets.
- The private key is considered to be the user’s private information and should be kept safely in the user’s local area.
A well-known stockbroker, Peter Schiff, had recently lost his bitcoin and was not happy with it. He tweeted about Bitcoin, which lead to a heated debate with mixed opinions.
There can be numerous reasons for it. This includes BUGs in wallet software, mobile phone viruses. Additionally, there was also a case where the mobile phone may be directly broken or lost. At this time, if the user has never backed up the private key, the money will never be recovered.
The co-founder of Ethereum, Vitalik Buterin, has said that this circle regarding Bitcoin can and will provide better and more secure wallets. The private key considered to be the user’s credentials to access the blockchain network.
Every operation on the blockchain verifies the user’s private key through a method called digital signature. The private key is considered to be the user’s private information and should be kept safely in the user’s local area. If it gets leaked, then it will bring security issues.
The user’s asset information and their operation records get recorded on the blockchain. The wallet accesses the blockchain and parses the raw data into a user-readable format.
There is a vast number of decentralized applications on the blockchain, which includes financial DeFi, games, etc. The wallet serves as the entrance to these applications. Just like the blockchain application store, it implements application distribution.
If one does not have a wallet, he or she cannot refer to as a user of the blockchain. The portfolio gives you a ticket for ordinary people to enter the blockchain world.
Considering the security risks, one needs a secure and crucial easy-to-use management mechanism which able to fulfil the necessary condition for users to manage assets and enter the blockchain world independently.
On a key management level, the solutions represented by TEE and hardware wallets help improve the security of the media. The mainstream multi-chain wallets have been adopted for this scheme as if now.
A private key will entirely control the user’s assets. Instead, they will be controlled by a smart contract. The benefit of this is that the risk is no longer highly concentrated. Simultaneously, it also allows its users to make appropriate mistakes.
If the user accidentally leaks or loses the paper with the private key, there are several other ways to ensure the security of the account or to restore the account.
Although these wallets do not make use of smart contract technology, there still exists the wallets which use the new technology to lower the threshold for users to keep private keys.
All this indicates the introduction of new technology pointing towards the coming of a new era. If they succeed, smart wallets might be able to make it easier for users to use blockchain.
