General Talk about Blockchain Wallet Types

Image for post
Image for post

Simply speaking, the blockchain wallet is a tool for storing user blockchain digital assets.
At present, there are many storage user blockchain digital asset tools in the blockchain industry. But it usually classified according to certain functions or technical characteristics.

  1. Blockchain wallet can be divided into cold wallet according to whether the wallet is networked or not.

Cold wallet, also called offline wallet. It usually comes in the form of electronic hardware to store the user’s wallet private key and isolate it from the network. Normally, blockchain cold wallets aren’t connect to the Internet only when it is necessary. It needs to be connected manually or through other devices. At present, there are common cold wallets like paper, USB disk, small hard disk, smart watches and other smart storage hardwares.

Hot wallet, also called online wallet, which usually comes in the form of an app or web platform. Unlike a cold wallet which can be made with material, hot wallet is usually developed by a third party or service provider. The user must access the hot wallet through the network. In most cases, the private key of the hot wallet is kept by the third party or service provider instead of the user.

  1. According to whether the node data is completely stored or not, blockchain wallet can be divided into full node wallets and light wallets.

Full-node wallet is a blockchain wallet that stores all transaction data, which is usually used with the node client as the official wallet. It can trace the origin and verify the authenticity of digital assets; it can verify whether transactions on the blockchain are completed, how many blocks are confirmed for protection, whether there is sufficient balance in the address and whether there are double spend attack, etc. Because the data stored in the wallet is huge and the data needs to be synchronized with the blockchain in time, so it is more restrictive to use.

Light wallet: A light node wallet is simply understood as a node wallet that stores blockchain transaction data incompletely, referred to as a light wallet. Because its data is incomplete, it cannot fully perform the functions of a full node wallet.

  1. According to whether the user owns the private key, blockchain wallet can be divided into centralized wallet and decentralized wallet.

Centralized wallet: The user does not hold the wallet private key which is kept by a third party or service provider.

Decentralized wallet: The user owns the wallet private key while the third party or service provider do not have access to that.

  1. According to whether it supports multiple currencies, it can be divided into single, multi-currency wallets, and full-currency wallets.

Single currency wallet: A blockchain wallet that only serves a single blockchain digital asset. Wallets that only support a single blockchain main chain platform are also called main chain wallets, and are generally developed by project parties or the community.

Multi-currency wallet: It support multiple blockchain digital assets. A variety of blockchain digital assets can be a token of a main chain or its protocol, or they can be different digital assets on a variety of blockchain main chains.

Full currency wallet: A blockchain wallet that supports all types of blockchain main chain digital assets and token assets. As the types of digital assets continue to increase, full-currency wallets are currently only envisioned. When the blockchain technical specifications and the circulation of digital assets will become more convenient in the future, full currency wallets may come out then .

5.Classified by private key signature, blockchain wallet can be divided into single-signature wallet and multi-signature wallet.

Single-signature wallet: A blockchain wallet that requires only one person to sign with a private key.

Multi-signature wallet: A blockchain wallet that requires 2 or more different private key signatures to use. It is usually used in scenarios that require joint management of accounts, such as digital asset organization cooperation, blockchain enterprise management, and so on.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store