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How Crypto Wallets Have Improved Since the Beginning

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The cryptocurrency world moves fast, and any company that wants to be a part of it must move with it. As the use of cryptocurrency grows and more people recognize it as a viable alternative to traditional fiat money, firms in the industry are continually working to provide crypto wallets that balance the desire for greater convenience and the necessity of improved security. Thankfully, we’ve come a long way since Satoshi’s first crypto wallet in 2009.

The Rise of Multi-Coin Wallets

Since the recognition of Bitcoin as a legitimate means of economic transfer, many altcoins have found their way into the marketplace. Unfortunately for cryptocurrency users, the early days meant that you would need a different wallet for every coin you owned.

Fortunately, as the use of cryptocurrencies grows, so does the convenience offered by firms in the industry. Presently, there are various multi-coin wallets available that allow users to trade between different cryptocurrencies, usually without leaving the interface. Companies that offer this type of liquidity among different cryptocurrencies include Coinbase Pro and Blockchain, both of which also allow the purchase of crypto with fiat money. Coinbase allows you to avoid waiting for coins to be verified on the exchanges by signing up for its extension services.

A Greater Diversity of Wallets

Crypto enthusiasts have a lot more choice in the ways in which they can manage their money. Those looking for the utmost convenience can use a web wallet like GreenAddress, which runs on the internet browser, or a mobile wallet app like that offered by Xapo

Crypto users willing to sacrifice a little convenience for greater security can use a desktop wallet that includes software packs that allow you to make transactions offline. Hardware wallets, like Ledger Nano, operate similar to a USB stick. They allow the user to make transactions online while storing the money offline. The Ledger Nano has the benefit of offering the exchange of 22 coins in its interface.

A More Enhanced and Convenient Security

Perhaps the biggest change in crypto wallets over the years is an ever-constant push to increase their security. Several major hacks in the last decade have emphasized the need to protect users’ funds.

In order to safeguard cryptocurrencies, some companies offer multi-signature wallets, which require multiple parties to sign off on a transaction before it can be completed. Armory is one of many multi-signature wallets on the market that uses this method to bolster security. The Armory wallet is also noncustodial, meaning that there isn’t a third party that has access to your money, keeping with the original spirit of the first cryptocurrencies.

Another exciting trend in cryptocurrency is the use of artificial intelligence to secure both the blockchain and users’ crypto wallets. Velas, for example, offers a web and desktop wallet that uses AI to encrypt the data and protect against attacks. Alex Alexandrov, CEO of Velas and CoinPayments, states: “We are excited to launch our Velas pre-alpha mainnet blockchain, powered by artificial intuition and now made available our desktop and web wallets.” Removing human dependency in the system is meant to prevent any openings for potential hackers. 

As the cryptocurrency ecosystem evolves, so does the services offered to its users. These include ways of managing and protecting coins, providing crypto enthusiasts easier and safer ways to move funds, as well as more opportunities to do so. With crypto wallets keeping pace with user demands, the future of cryptocurrency continues to look bright.

About Ryan Dennis

Ryan Dennis a cryptocurrency and fintech writer based in Western Ireland. When not following the latest blockchain news, Ryan is playing on one of the few softball teams found on the island.

He tweets at @PenOfRyanDennis.

Click here for more guest articles on The Daily Chain.

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