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With a decentralized Web 3.0 poised to be the future of the internet, digital assets may very soon become a norm. What is now being driven by FOMO may just become the standard for ownership. Digital assets, including cryptocurrencies, NFTs and more, have the potential to form a whole new asset class that is defined by control and ownership.
But as this technology continues to grow, it is vital to ensure that the assets are kept safe by the best the industry has to offer. This is where Web3 wallets come into the picture. These wallets are completely decentralized and give the users complete control over the public and private keys. This means that Web3 wallet development is driven by the need for impenetrable security such that nobody but the owner of the keys has access to the contents of the wallet.
Based on where the private keys are stored and the wallet’s connectivity to the internet, Web3 wallets are classified into different types. Here are a few of them.
Classifying Web3 Wallets
On the basis of storage of private keys, Web3 wallets may be divided into hardware and software wallets. While the former stores the keys in a physical device, the latter can be accessed via an app or even a website. There is yet another category called paper wallets that consist of the wallet’s keys being printed on paper. This, however, is the least secure of the three.
Depending on their connectivity to the internet, wallets can be either hot or cold. Hot wallets can be accessed anytime, anywhere through the internet. However, it must be noted that they may have limitations in security. You also have cold wallets that are not connected to the internet and, therefore, more secure.
Closing Thoughts
With so many types of wallets to choose from, selecting the right one may be daunting. However, it is imperative that you DYOR (do your own research) and decide on the one that offers you the best in terms of convenience and security.
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