The web3 wallet which has been making massive waves on the internet is a digital platform that gives users access to the web 3space. This wallet is quite similar to regular crypto wallets thus, it also allows users effortlessly store, receive and send cryptocurrencies.
Through this wallet, one can connect with a large community, develop platforms for blockchains, transact NFT’s and interact with smart contracts. They are currently the best digital wallet on the market especially because they create a wide array of valuable applications.
However, the web3 wallet also has some downsides which every potential user should be aware of. This article will completely cover all you need to know about the advantages and disadvantages of the web3 wallet. So, if this is what you’re here for, grab a chair and read tight!
Pros of the web3 wallet
The web3 wallet is user friendly. It gives users complete control of their assets and it is easy to navigate. Since users have a direct access, they can manage a variety of assets.
Most importantly, the web3 wallet is easy to set up. This process only takes a few minutes and as soon as an account has been created, you can immediately start transacting and make use of several web 3 products. Compared to the traditional digital wallets, the web3 wallet is easier to use.
Another important advantage of the web3 wallet is the privilege of privacy and anonymity. It is one of its best features. It protects user data so while you do transactions with another address, it would be near impossible to know the recipient.
The protection of your funds is another benefit of the web3 wallet. It ensures the safety of your investments and funds and secures all transactions by using an encrypted sign in/sign up procedure. This requires you to input your details so that there won’t be any breach in the accessibility of your wallet.
Web 3 wallets are super dependable. It gives flexibility to both producers and consumers and employs decentralized networks to ensure that all users have total access to their data. The fact that it is decentralized eliminates the possibility of failure at any point.
It has a professional look.
It also makes it possible for users to follow other users wallets and even interact
Cons of the web3 wallet
The web3 wallet is powered by various technologies including machine learning power, blockchain and AI. This means that it will make use of 3D graphics, semantic data and more. Thus, it will be difficult for less advanced devices to access or handle it. Users will require above-average devices to access it.
Other lower web wallets will seem pretty outdated
For beginners, the web3 wallet might be a bit complicated to understand
Regulation of the web 3 space is difficult so overseeing it becomes a little hard. Due to this, there might be an increase in cybercrimes and online abuse.
TYPES OF WEB 3 WALLETS
Web 3 wallets as we already know interact with decentralized applications which makes them easily perform transactions on blockchain. These wallets are into hot and cold wallets.
These wallets are a common wallet category and they basically operate in an online mode. They are termed “hot” because their funds are being stored online. The only drawback to this type of wallet is its vulnerability to breaches or hacks.
Hot wallets are typically divided into-
One of such type of wallet is the trust wallet. It allows users to access and manage their assets using their smart phones. Users are able to interact with platforms on web 3 via wallet connect. This actually helps to establish a connection that’s encrypted between two devices, wallets or applications.
Metamask wallet is a good example of a web based wallet. Wallets like these come with a browser extension. They can hold cryptocurrencies and interact with web 3 platforms via a browser interface. Thus, it won’t be necessary to install or download anything on a device. It has the same exact features you find in a desktop wallet and use the same block explorers and blockchains to research transactions and blocks.
Wallets that fall under this category are those that can operate an offline mode. Their hardware device is what helps them safely store crypto assets. It’s not possible attempt breaches or hacks on this wallet. Two prominent cold wallets available on the market are Ledger and Trezor.
These wallets are usually downloaded as an application to either our desktops or laptop. What it means is that they are executed locally in the machine. They are also hot wallets but they are considered the safest.
These wallets are electronic devices that somewhat resemble a USB. Their Random number generator is what they use in the generation of both private and public keys. They are considered the safest wallets because of their ability to hold private and public keys without being connected to the internet. Thus, users are able to access their cryptocurrencies while offline. Using hardware wallets for storage provides users better security and prevents hackers from accessing their wallets.
This makes hardware wallets the best option for long term investments.
A lot of people might have no idea of what paper wallets are because they are not so common. A paper wallet is simply a piece of paper that consists of a blockchain address and a private key. They can be printed out physically and these keys are usually printed as QR codes. Transactions are done by scanning the QR codes.
They were used formerly but in these modern times, they aren’t advised because of their fundamental downsides. One of which is the fact that they are unable to send partial funds, and will only send an entire balance at a time.
To fully utilize any web3 wallet, it is important you have enough information about it pros and cons. Thankfully, this article provides a handful of them. However, it is usually advised to go for software wallets because they tend to be pretty convenient.