The Cardano ecosystem is growing by leaps and bounds. Adoption generates the need for user tools, and developers are attentive.
The crypto wallet is a computer program for transacting with our digital currencies.
Unlike how we use our pocket wallets to store our physical money, digital wallets are just a platform to store and access our private keys, and execute transactions over the blockchain.
Some cryptocurrencies offer their own official wallets, while other applications allow us to store multiple coins within the same wallet.
How do Crypto Wallets Work?
A cryptographic wallet is electronic and includes public keys and private key (asymmetric cryptography):
Public key: it is a long sequence of letters and numbers that form the electronic address of our wallet. With this, we can receive money in our wallet. It is similar in function to a bank account number.
Private key: it is used to access the funds stored in the digital wallet to manage them. Like a PIN or security key, we will have to keep our private key secret and always safe.
We must consider that not all wallets provide us with exclusive ownership of a private key, as I will explain, which means that we will not have full control over our digital assets.
In terms of disposition of funds, there are wallets that are “custodial”, since the service provider holds the private keys on its server under its responsibility, (do you know the phrase “not your keys, not your cryptos?) while those that are “non-custodial” you are responsible for the private keys and that means that, if you lose them, you lose your funds.
Let’s distinguish two main categories: hot wallets and cold wallets. In simple terms, “hot” wallets are permanently connected to the Internet and “cold” wallets are not.
Hot wallets store private keys on online servers. You simply have the username and password for the account. They are exposed to server hacks or legal seizures. The advantage is that they are characterized by their speed and ease of transactions.
Software wallets (desktop application or mobile device) mostly store private keys and never leave your device. They are stored and encrypted on your computer or mobile device. In a few wallets, your keys are stored on the provider’s server. Exposed to hacking of your computer or cell phone. Recommended for storing medium-term funds.
Cold wallets or hardware wallets (physical, connected by USB), have greater privacy and security, since you own the private keys. They also provide a second layer of security, since they are kept off line. They are recommended for long-term storage of large amounts of funds. The most popular ones are Ledger and Trezor, which are supported by the official Cardano wallets.
I don’t consider exchanges as wallets as they are like banks. Coinbase or Binance are the best known. They are easy to use, they store the private keys on their servers, and you access them with a password, just like banks. Your funds are exposed to server hacks, bankruptcy of the service company, or legal seizures.
Finally, and depending on how they get the information from the blockchain, wallets can be thin clients or they can be full nodes.
In Cardano, the official thin wallet is Yoroi, which has two versions, one is Yoroi Mobile that runs on the cell phone (Android or IOS), and another is Yoroi Desktop Extension for Chrome or Firefox browsers. The advantage is that it requires little computer input and network connection, which allows us to develop the interface faster since it does not store the entire blockchain. The disadvantage is that to operate you connect to servers of the company EMURGO, its developer.
Node wallets connect directly to the blockchain. Of course they are non-custodial and the advantage is the privacy of connection, as there are no intermediaries between you and the network. The disadvantage is that they can only be installed on a PC, due to their resource demands, as they download the entire blockchain to your device. For Cardano, Daedalus, at the moment is the only node wallet, and the requirements for its installation is to run on your pc dual-core 64-bit processors, 8GB RAM, 15GB of free disk space and broadband Internet connection.
Choosing a Wallet?
The quick answer is that it depends on your computing needs and resources, how and what you use your cryptocurrencies for.
Consider the following criteria:
- Type of use. If we need security because we have a large amount of funds, hardware wallets are ideal, of course they have a cost. If we have less funds and want quick access to our money, a mobile wallet may be our option. Generally a combination of both is reasonable.
- Ease of use. While crypto beginners may focus on finding a wallet that is easy to set up and use, more experienced users may look for more advanced features and functions, with cryptocurrency exchanges within the same wallet, selection of transaction fee amounts, or multiple signatures for funds management.
- Security. You should investigate the wallet’s security features, such as two-factor authentication, whether it is open source software, and whether it makes frequent updates to protect against attacks. Check with industry sources to ensure that the wallet has not suffered security breaches.
The Proposal: ccwallet.io
The proposal is based on a light wallet, exclusively for use with the Cardano blockchain, functional for browsers.
The team is determined to provide the best wallet experience for Cardano, rapidly implementing new features and functionalities. They present their proposal as the foundation the Cardano community wants for a modern web wallet, as they implement the features requested by users for both advanced users and newcomers.
The ccwallet.io wallet is currently operational, with its v1.0.8, bringing features that are missing in current wallets, such as NFT display, better token processing, address book, among other functionalities.
The enhancements they propose to implement in this proposal:
- Multi-delegation (stake pool wallets)
- Catalyst registration
- DApps integration
- Advanced user features: customized transactions
- Smart Contract support
- Yubikey support for wallet lock and/or spending passwords (2FA)
- Languages: English (implemented), German, Swedish, and others.
- Chrome browser version of the extension
- CSV exports for Cointracking, especially with internal accounts (intra wallet).
The developers consider as success for the development, the adoption of ccwallet.io as one of the main Cardano wallets, next to Daedalus and Yoroi, in the next 12 months.
The team currently consists of two devs, with another dev joining in September.
Marcel Baumberg, SPO of TITAN, CEO of Tastenkunst GmbH, an online advertising production company, based in Leipzig, Saxony, Germany.
Ola Ahlman, SPO of AHL, principal maintainer of CNTools. He tells us that he has more than 15 years of experience in IT management and implementation of mission-critical servers in an air traffic control center.
SPO Marcel Baumberg has renamed the TITAN #2 stake pool as ccwallet.io, public community pool [CCW], to raise funds for development.
The proposed budget will help plan ahead and add developers to the team.
Funds Requested: $30,000
- 4 months partial server costs: USD 12,000
- 4 months of developer salaries: USD 18,000
You can view the FUND6 proposal at Catalyst.
This article was written at Refine Stage and may have changes from the developers up to the Stage, which is ASSESS.
Editor’s note: always do your own research on developments (DYOR). The wallet is the most important tool for the user in the crypto industry.