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      "body": "@@ -4105,8 +4105,34 @@\n e again.\n+%0A%0AAuthor: blckchainexplain\n",
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      "title": "Cryptocurrency Wallet Types",
      "body": "<center>__Cryptocurrency Wallet Types__</center>\n\n<center>![](https://steemitimages.com/DQmaADgpT6wPY6LXbLQrxMN6nFkuX6bCegnjW6Z2AdDF45P/image.png)</center>\n\nAs witnessed in the above diagram, digital wallets come in five major categories ranging from computer software programs to regular sheets of paper. To start off, a Desktop wallet is a digital wallet that is downloaded and installed on a PC or laptop. The user can access the wallet only on the desktop/laptop on which the digital wallet software is downloaded and installed. This type of digital wallet ranks high in terms of security because your digital currency is stored offline on your computer’s hard drive. It is very important to keep your desktop/laptop up to date in terms of malware and virus software. Take the necessary precautions to keep your computer security high so your digital assets stored on your desktop wallet are not susceptible to hacking and viruses.\n\nOnline wallets represent a class of digital wallets that are stored on the cloud. These types of wallets are provided and controlled by third parties. These third party services store your wallet’s private keys on their data servers making them much more vulnerable to theft and hacking attempts due to their centralization of digital storage. The great advantage of online wallets is having accessibility to your digital wallet from any computer with internet access.\n\nMobile wallets are like desktop wallets in the sense that you must download and install the application on your mobile device. The accessibility of mobile wallets is slightly better than desktop wallets because transporting a mobile device is much easier than carrying around a laptop computer. Another advantage of a mobile wallet is the ability to use the wallet at many retail locations. These mobile wallets are built to be much smaller and simpler due to the reduced storage space on mobile phones in comparison to desktop and laptop computers. This type of digital wallet is considered more secure than online wallets. Furthermore, malware and viruses are not as advanced on mobile applications as they are on desktop and laptop computers making this category of digital wallets slightly more secure than a desktop wallet.\n\nHardware wallets differ the most from the first three types of digital wallets mentioned above. A hardware wallet is a special type of digital wallet that stores the private keys of the user in a secure hardware device such as a USB. Hardware wallets are immune to computer viruses that can create havoc for desktop and mobile digital wallets. Furthermore, hardware wallets usually have the capability to store a wider range of cryptocurrencies rather than desktop and mobile applications. The major advantage of the hardware wallet is keeping your digital assets offline otherwise known as cold storage. This method is highly secure and very risk averse. However, this is the most expensive type of digital wallet.\n\nA paper wallet offers the highest level of digital security. This type of wallet is simply a physical printout of your public and private keys. A paper wallet isn’t any different from a digital wallet except for the fact that your information is kept offline on a physical sheet of paper. While a paper wallet offers the highest form of digital security and the cheapest cost, it is susceptible to physical loss and corruption. You may lose your paper wallet by simply misplacing it or spilling coffee on it resulting in a loss of your public and private keys. It is a wise approach to make several backups of your paper wallet to reduce this risk of physical loss. Paper wallets usually work in tandem with a software application that will generate your keys prior to print out. It is also possible to transfer funds from a paper wallet to a software wallet prior to making a purchase or receiving funds before transferring the funds back to the paper wallet once again.",
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      "body": "<center><h1>__Basics of a Cryptocurrency Wallet__<h1></center>\n\n\nA cryptocurrency wallet and how it is differentiated from a regular cash currency wallet is one of the major concepts that is important to understand when entering the world of cryptocurrency and blockchain technology for the first time. Since the first successful application of blockchain technology involves digital currencies, it is primary to understand how a digital cryptocurrency wallet functions, what it actually is, and what the major details surrounding it are.\n\n<center>![](https://steemitimages.com/DQmRFuYAJ8kLTLpAnJXYhHrir27f6tTG3aMGwUb2VyzraXr/image.png)</center>\n\nOne of the most important aspects of a digital wallet versus a traditional wallet is the fact that a digital wallet does not physically store the currency. This means that when cryptocurrency is sent or received from one digital wallet to another, no coins are moved but only transaction data is recorded, and the digital balance is altered for the sender and receiver of funds. Users of digital wallets have only two functions they can perform, they can check their digital balance and they can send or receive digital funds.\n\nNow that you understand the concept of a cryptocurrency wallet, it is important to understand the two major keys that make up the wallet. After all, a digital wallet is just a software program that stores these two keys. These two major keys are called a private key and a public key. A mailbox is a simple analogy that makes it easier to understand how the public and private keys work. A mailbox usually stands on the street at a public location where anyone has access to its public address. Anybody who knows the address can drop a letter in the mailbox. Only the owner of the mailbox has a key that opens the mailbox to read the messages. Therefore, in the mailbox example, the public key represents the address of the mailbox which allows people to know where to send you messages. A private key is like the key that the owner uses to open his mailbox to read the messages. A private key is only known to you and you shouldn’t share it with anybody. However, your public key is like an address that everybody can find and has access to. \n\nOne important difference from the analogy is that these keys are not actual physical keys and they consist of a certain length of upper and lower-case letters mixed with numbers forming a long chain of characters. Through the process of asymmetric encryption, both your wallet’s private key and public key are linked to each other. This link is done through an intensive mathematical process that alters the private key into a public key. The mathematical encryption prevents the ability to reverse engineer your public key back to your private key ensuring security of your digital wallet.",
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      "body": "<center><h1>__Basics of Sending/Receiving Cryptocurrency Funds__<h1></center>\n\nThe process behind how funds are sent and received from one digital wallet to another is quite simple. Let’s think of a scenario where we have two people that are trying to transfer digital funds from one to the other.\n\n<center>![](https://steemitimages.com/DQmULNoFTpjUqhsGZiXrZn2nzgHrShgn6rFYW9reft7dRtL/image.png)</center>\n\nJohn just received a piece of furniture from Jill and the two decided to settle their funds by exchanging cryptocurrency. The first thing that both John and Jill must do is exchange their own public keys with each other. John give’s his public key for his digital wallet to Jill and Jill give’s her public key for her digital wallet to John. Now John can create a digital message that contains the specific amount of digital currency he is planning on paying Jill for the piece of furniture. \n\nJohn creates the message using his digital wallet software and then encrypts the message with Jill’s public key. John then sends the message to Jill who now uses her private key to decrypt the message and receive the funds in her digital wallet. Jill is the only one who can decrypt the message because only she has the private key. Even John would not be able to decrypt the message he creates because his private key would not match the public key used to encrypting the message. \n\nRemember that everyone who possesses a digital wallet has a private and public key that are mathematically linked to each other. This process is called asymmetric encryption and its strength and security depends on John and Jill keeping their private keys secure and protected. If a hacker found Jill’s private key, the hacker would then be able to decrypt any messages sent to Jill compromising the security of her digital wallet. \n\nIn short, what’s most important to remember are three main points in the process of sending and receiving funds with digital wallets. The very first point is that a public key are used to encrypt data and only a matching private key can decrypt that data. Second, to be able to spend digital assets, your wallet’s private key must match the public address the digital asset is assigned to. Finally, if both public and private key’s match, the balance of your digital wallet will increase, and the senders decrease.",
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      "body": "This is very interesting. Crimea has been crippled financially since the beginning of the US sanctions and most businesses are staying away from the region due to this. I have hope for this cryptocurrency development in the region.",
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      "body": "<center><h1>__Basics of Sending/Receiving Cryptocurrency Funds__<h1></center>\n\nThe process behind how funds are sent and received from one digital wallet to another is quite simple. Let’s think of a scenario where we have two people that are trying to transfer digital funds from one to the other.\n\n<center>![](https://steemitimages.com/DQmULNoFTpjUqhsGZiXrZn2nzgHrShgn6rFYW9reft7dRtL/image.png)</center>\n\nJohn just received a piece of furniture from Jill and the two decided to settle their funds by exchanging cryptocurrency. The first thing that both John and Jill must do is exchange their own public keys with each other. John give’s his public key for his digital wallet to Jill and Jill give’s her public key for her digital wallet to John. Now John can create a digital message that contains the specific amount of digital currency he is planning on paying Jill for the piece of furniture. \n\nJohn creates the message using his digital wallet software and then encrypts the message with Jill’s public key. John then sends the message to Jill who now uses her private key to decrypt the message and receive the funds in her digital wallet. Jill is the only one who can decrypt the message because only she has the private key. Even John would not be able to decrypt the message he creates because his private key would not match the public key used to encrypting the message. \n\nRemember that everyone who possesses a digital wallet has a private and public key that are mathematically linked to each other. This process is called asymmetric encryption and its strength and security depends on John and Jill keeping their private keys secure and protected. If a hacker found Jill’s private key, the hacker would then be able to decrypt any messages sent to Jill compromising the security of her digital wallet. \n\nIn short, what’s most important to remember are three main points in the process of sending and receiving funds with digital wallets. The very first point is that a public key are used to encrypt data and only a matching private key can decrypt that data. Second, to be able to spend digital assets, your wallet’s private key must match the public address the digital asset is assigned to. Finally, if both public and private key’s match, the balance of your digital wallet will increase, and the senders decrease.",
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      "body": "<center><h1>__Basics of a Cryptocurrency Wallet__<h1></center>\n\n\nA cryptocurrency wallet and how it is differentiated from a regular cash currency wallet is one of the major concepts that is important to understand when entering the world of cryptocurrency and blockchain technology for the first time. Since the first successful application of blockchain technology involves digital currencies, it is primary to understand how a digital cryptocurrency wallet functions, what it actually is, and what the major details surrounding it are.\n\n<center>![](https://steemitimages.com/DQmRFuYAJ8kLTLpAnJXYhHrir27f6tTG3aMGwUb2VyzraXr/image.png)</center>\n\nOne of the most important aspects of a digital wallet versus a traditional wallet is the fact that a digital wallet does not physically store the currency. This means that when cryptocurrency is sent or received from one digital wallet to another, no coins are moved but only transaction data is recorded, and the digital balance is altered for the sender and receiver of funds. Users of digital wallets have only two functions they can perform, they can check their digital balance and they can send or receive digital funds.\n\nNow that you understand the concept of a cryptocurrency wallet, it is important to understand the two major keys that make up the wallet. After all, a digital wallet is just a software program that stores these two keys. These two major keys are called a private key and a public key. A mailbox is a simple analogy that makes it easier to understand how the public and private keys work. A mailbox usually stands on the street at a public location where anyone has access to its public address. Anybody who knows the address can drop a letter in the mailbox. Only the owner of the mailbox has a key that opens the mailbox to read the messages. Therefore, in the mailbox example, the public key represents the address of the mailbox which allows people to know where to send you messages. A private key is like the key that the owner uses to open his mailbox to read the messages. A private key is only known to you and you shouldn’t share it with anybody. However, your public key is like an address that everybody can find and has access to. \n\nOne important difference from the analogy is that these keys are not actual physical keys and they consist of a certain length of upper and lower-case letters mixed with numbers forming a long chain of characters. Through the process of asymmetric encryption, both your wallet’s private key and public key are linked to each other. This link is done through an intensive mathematical process that alters the private key into a public key. The mathematical encryption prevents the ability to reverse engineer your public key back to your private key ensuring security of your digital wallet.",
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      "parent_permlink": "blockchain",
      "author": "blckchainexplain",
      "permlink": "h1what-is-a-cryptocurrency-wallet",
      "title": "<h1>What is a Cryptocurrency Wallet?",
      "body": "<center><h1>__Basics of a Cryptocurrency Wallet__<h1></center>\n\n\n A cryptocurrency wallet and how it is differentiated from a regular cash currency wallet is one of the major concepts that is important to understand when entering the world of cryptocurrency and blockchain technology for the first time. Since the first successful application of blockchain technology involves digital currencies, it is primary to understand how a digital cryptocurrency wallet functions, what it actually is, and what the major details surrounding it are. \n\tOne of the most important aspects of a digital wallet versus a traditional wallet is the fact that a digital wallet does not physically store the currency. This means that when cryptocurrency is sent or received from one digital wallet to another, no coins are moved but only transaction data is recorded, and the digital balance is altered for the sender and receiver of funds. Users of digital wallets have only two functions they can perform, they can check their digital balance and they can send or receive digital funds. \n\tNow that you understand the concept of a cryptocurrency wallet, it is important to understand the two major keys that make up the wallet. After all, a digital wallet is just a software program that stores these two keys. These two major keys are called a private key and a public key. A mailbox is a simple analogy that makes it easier to understand how the public and private keys work. A mailbox usually stands on the street at a public location where anyone has access to its public address. Anybody who knows the address can drop a letter in the mailbox. Only the owner of the mailbox has a key that opens the mailbox to read the messages. Therefore, in the mailbox example, the public key represents the address of the mailbox which allows people to know where to send you messages. A private key is like the key that the owner uses to open his mailbox to read the messages. A private key is only known to you and you shouldn’t share it with anybody. However, your public key is like an address that everybody can find and has access to. One important difference from the analogy is that these keys are not actual physical keys and they consist of a certain length of upper and lower-case letters mixed with numbers forming a long chain of characters. Through the process of asymmetric encryption, both your wallet’s private key and public key are linked to each other. This link is done through an intensive mathematical process that alters the private key into a public key. The mathematical encryption prevents the ability to reverse engineer your public key back to your private key ensuring security of your digital wallet.",
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