A smart wallet crypto is an Ethereum-based cryptocurrency wallet that manages the user’s funds using smart contract code. This allows for more secure access, multi-sig transactions, daily transfer limits, emergency account freezing and more.
How a Smart Wallet Works
The wallet’s private key is a random 12 to 24 word string of text that only the user should know, and is only known after an initial set up process. This is called a seed phrase, and non-custodial wallets require that users keep the seed phrase in a safe location, since they can’t recover their funds without it.
Once a user has established an account, they can start using the wallet to manage their crypto assets. It can also be used to interact with decentralized applications (dApps).
Unlike custodial wallets, which store the private keys on a computer server, smart wallets are portable and use a smartphone to connect to the blockchain. They also have a number of security features, including 2-factor authentication and RFID blocking.
How a Smart Wallet Can be Built
Almost all of the wallets available today are based on the Ethereum blockchain, and many offer interoperability between currencies and platforms. This means that users will be able to convert their fungible tokens into different forms of currency.
Some of these wallets also provide an option to store cryptocurrencies in cold storage. This is helpful for users who need to store their funds for a long period of time.
While some of these wallets operate in partnership with a major crypto exchange, others are standalone products that offer their own storage. One example is Trust Wallet, which operates in partnership with Binance and supports more than 1 million digital assets.
The company says that its wallet is “simple to use” and offers free transactions. Its features include no paper backups, simple addresses and no fees for sending or receiving coins.
Argent — This UK-based company aims to build “radically better crypto wallets.” They boast no paper backups, simple addresses and free transactions. The wallet is based on the Ethereum protocol and uses a mobile phone number and email address to verify your identity during the set up process.
It also introduces Guardians, which enables accounts recovery with friends, relatives, hardware wallets or Argent Guards. The service also provides an option to freeze the wallet and prevent access if the device is lost or stolen.
Other wallets are designed to protect the wallet’s contents by detecting if it’s been lost or stolen. They often use RFID technology to help track the whereabouts of the device and the content inside it.
These features are a must for any smart wallet, and they can be very effective at protecting your crypto. They are a great way to make sure that only you can access your money.
A crypto wallet should be able to split fungible tokens into smaller denominations, which can help users avoid scams and other threats that can change the value of their crypto assets. This can be achieved by a factorization algorithm, which will break the value of each coin down into smaller fractions.