Virtual currency (digital assets) and wallet

FIRST, THE BACKGROUND

When virtual currency (digital assets) is more and more vigorous, its sending and receiving is bound to become one of the key points. As we know the legal currency (such as NT, US dollars) also need to store and send and receive, such as home safes or banks and other financial institutions are common channels. So where should virtual currency (digital assets) be stored?

SECOND, FOCUS VIEW

The virtual currency (digital assets) wallet (Wallet) is in the form of a software wallet, a hardware wallet, a hot wallet, a cool wallet, a paper wallet (Paper Wallet), and a brain. Wallet (Brain Wallet) and various other types.

The hardware wallet also has a physical vehicle that carries relevant information and delivers digital currency with a software package; the software wallet has no physical form, and is carried out on a mobile device, a computer or the cloud.

For example, there are virtual currency (digital assets) exchanges or purchases of virtual currency (digital assets) and stored in the web wallet of the exchange or the shopping center, and because of the way of network storage, it is vulnerable. As a result of guest attacks, there is a growing need to isolate wallet-related information from the Internet. Such isolation method, there is the popular practice purely virtual currency (digital assets) of the private key (Private Key) to print on paper records, and commonly known as the paper’s purse (record delete files from your computer and then on paper), have their own user Set, after the operation to generate the corresponding private key (Private Key) and address (Address), and record it in the head, called the brain wallet, there is a private key and address record will be recorded In the computer of the network, it is called a cold wallet only by scanning code and flash drive. Compared to the offline mode of the cold wallet, the online mode is called a hot wallet. Hot wallets are more convenient because they have a network connection, but the security is lower than the cold wallet as mentioned above. There are also multiple-key wallets (Multi-Sig Wallet) with a set of public keys and multiple sets of private keys, and a Hierarchical Deterministic Wallet with a tree-like structure. Each has its own performance and use.

In addition to the above-mentioned type purse, may refer to other bits credits functional improvements file (Bitcoin Improvement Proposals, BIP). For example, BIP32 also mentions the Deterministic Wallet and its advantages over non-deterministic wallets (randomly generating private keys). BIP38 mentions Passphrase-Encrypted Wallet. BIP39 refers to the use of mnemonic code or mnemonic code, BIP44 refers to different currency and account support methods.

THIRD, THE CONCLUSION

After observing the above wallet types, it is not difficult to find that one of the focuses is the security of virtual currency (digital assets). Whether it is stored in paper, brain, flash drive or any offline mode, or in multiple signatures, attempts are made to improve security. Convenience is also one of the focuses, and now there are hundreds of people contending in the market. If you are interested, you can try to download your favorite style for personal experience.

Author: Cheng Yuk high (financial technology consultant / internationally recognized anti-money laundering division)

Originally published in Yuedan Accounting Network: http://www.angle.com.tw/accounting/cross/post.aspx?ipost=3156&fbclid=IwAR32k6UDBKchvVGQ6m4gO8d4zE75NQr_vC1xA4r71_YOFJlUZljQd1t1ZII

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