Cryptocurrency is the way of the future, and if you own some, you may already be aware of the value of a crypto wallet. Recent years have seen a substantial increase in the number of cryptocurrency users, which presents you with plenty of business prospects. For this reason, now is the perfect moment to purchase a blockchain-based wallet for your platform. However, are you considering the steps involved in creating a cryptocurrency wallet?
An introduction of the crypto wallet development process, key features, and other related topics are covered in this article. Let’s get going!
What Is A Crypto Wallet?
You may securely store and access your virtual money with a crypto wallet. It holds the public and private keys required for cryptocurrency exchanges and balance monitoring. It is a platform for managing cryptocurrency (Crypto tokens) and for trading and transferring them.
With a digital wallet, their virtual money is more secure. The address of the wallet receives control of the tokens each time they are supplied to it. This wallet could be installed on a computer, be real, digital, or portable.
The Functioning Of Cryptocurrency Wallets
You’ll need both your private and public keys—also referred to as your wallet address—if you wish to make a cryptocurrency purchase.
- A public key serves as your identity, much like a bank account number does. All you need is the bank account number of the person or organization whose money you wish to transmit or receive. Your digital wallet’s address could be the public key, which is shared unlike the private key.
- The private key to your cryptocurrency wallet is just as secret as your debit card PIN or bank account password. You should be cautious about who you disclose your personal identification number (PIN) to because it serves as a password to your digital money. If you provide your PIN to an unauthorized individual, they will have instant access to your financial information.
A third party requesting digital currency from you has to know the private cryptographic address that was created for your wallet. As a result, your cryptocurrency is stored on the blockchain rather than in the digital wallet. Your ownership interest in the digital currency is represented by the public and private keys that are kept in your crypto wallet because there isn’t a physical cryptocurrency token. These two keys allow you to send and receive crypto while safeguarding your private key.
Procedures To Follow When Developing A Cryptocurrency Wallet
If you plan ahead enough, you could create a cryptocurrency wallet app that becomes quite popular.
1. Understand The Concept Of Crypto And Blockchain
Without blockchain technology, it would be difficult to develop a cryptocurrency wallet. Prior to beginning to design a cryptocurrency wallet, become knowledgeable with blockchain development technology and digital currencies.
Blockchain technology promises to transform the way digital currencies (cryptocurrencies) operate, just like the internet allows people to browse the web. As the name suggests, a blockchain is made up of a number of connected blocks, each of which contains some digital data. A chain, a cryptographic mechanism, is used to connect the blocks. Sensitive information can be transferred efficiently and safely with its assistance.
2. Make Use Of Open-Source, Standard Cryptocurrency Libraries
Nearly every cryptocurrency has open source code. Consequently, there’s no need to begin at the beginning. You can use free libraries and tools like Coinbase SDK and BitcoinJ SDK.
All platforms are supported using the Java library known as the Coinbase SDK. It offers instructions on how to create a bitcoin wallet for iOS and Android. Moreover, this library is compatible with a large number of languages, including Python, Java, Ruby, etc.
The BitcoinJ SDK has clear documentation and is easy to use. Furthermore, you can utilize JVM languages like C++, JavaScript, Ruby, Python, and so on because BitcoinJ is JVM-compatible.
3. Use APIs
Using APIs makes creating a reliable digital wallet application simple. You may instantly synchronize your digital wallet with the blockchain ecosystem by using a distributed ledger application programming interface (API). Factom, SimpleSwap, Bitcore, and Coinbase are four of the most popular application programming interfaces (APIs).
4. Use Cloud Services
It’s time to choose the cloud services that will help your project the most.
- You can utilize PaaS (Platform as a Service) to develop a web application.
- On the other hand, you’ll need to locate a BaaS (Blockchain as a Service) provider and incorporate their cloud service if you want to create a cryptocurrency wallet application. Industry titans like Amazon, Azure, and Microsoft are among the providers of BaaS solutions.
Depending on your needs and preferences, you can utilize either one to make a specialized digital wallet application.
5. Technology Stack
Selecting the right technology stack is essential to the success of your app
- There are two well-liked choices for creating web applications: Node.js and Angular.js.
- These can be combined with CSS3 and HTML5 to create a strong and adaptable foundation. This can be used to create a secure online application.
- To make a native Android app, you can utilize Kotlin or Java.
- Objective-C and Swift can both be used to create iOS applications.
6. Boost Security
The first thing you should consider while creating a digital wallet application is security. You must ensure that your cryptocurrency app has the best possible security.
An extra security precaution for the cryptocurrency wallet software can be two-factor authentication (2FA), which can take the form of hardware authentication, face ID, or fingerprint.
It is the developers’ responsibility to continuously release security updates. If there are any defects or security holes, they must be located and immediately addressed with state-of-the-art techniques.
6. Examine Your Competitions
Undoubtedly, you want your wallet app to be unique from the rest. For this reason, you need to keep an eye on what your rivals are doing.
- Become familiar with their procedures and the technology they’ve used.
- Examine your selections to see what special features your app can offer.
- Remember that the only way to keep ahead of your competitors is to stay up to date on current affairs.
8. Create Your App
Thus, when the time comes for you to start creating your bitcoin wallet, be sure you:
- Choose the features that your app will have included.
- Write the code for the program and link it to your database.
- Make the user interface simple to use and comprehend.
- Make sure your wallet has undergone extensive testing before making it available to the general public.
Top Features To Be Included In Your Wallet App
1. Authorization Of Users
Your cryptocurrency wallet app should incorporate a two-factor or multi-factor authentication system (2FA or MFA). It functions as an additional security measure for your data.
2. QR Code Scanner
Enhancing your digital wallet’s speed, ease of use, convenience, and safety can be achieved by adding a QR Code Scanner. It may enable the automatic scanning of wallet addresses and public keys.
3. Multiple Cryptocurrencies
Your wallet must be able to hold multiple cryptocurrency types because new ones are continually being introduced and the prices of those that do exist frequently fluctuate. Simple cross-currency transactions must be supported by your cryptocurrency wallet software.
4. Paper Wallets
Users of your app must be able to access their paper wallets using the QR code scanner in order to send and receive cryptocurrency.
5. Push Notifications
Push notifications can be used to inform and alert consumers about cryptocurrency transactions and other pertinent information.
6. Current Conversion Rates
Give your clients the option to observe and modify transaction charges in response to the currency rate’s ongoing fluctuations.
6. Exchanges Employing Blockchain Technology
Users should be able to transfer and receive digital currency quickly and securely with your crypto app.
8. Address Administration
This feature will streamline transactions and save your clients time by giving them a single area to manage all of their frequently used addresses.
9. Payment Gateways
If you integrate a payment gateway into your app, customers will be able to purchase and exchange virtual products more rapidly.
10. Session Log Out
This is a great addition to the security aspects of your app. Users who haven’t used the app for a while will be automatically logged out under this configuration.
Why There Is A Need For Cryptocurrency Wallet Development?
For cryptocurrencies to be widely adopted, there are a few essential purposes for crypto wallets. Among the several situations in which a digital wallet is necessary are the ones listed below:
- Managing virtual currencies: Users can monitor the value of their crypto assets with a crypto wallet.
- Transactions: Digital wallets play a crucial role in enabling users to send and receive bitcoin payments.
- The fundamental prerequisite for accessing and utilizing decentralized applications (dApps) on Web 3.0 is a cryptocurrency wallet.
- Identifying usernames: To put it simply, all cryptocurrency data is stored on the blockchain. Users require a cryptocurrency wallet that connects their username to a public key address in order to transact on a blockchain.
- Key management: A public key address on the blockchain represents a cryptocurrency in its most basic form. Software called a digital wallet makes it easier to store and maintain the private encryption keys needed to send and receive cryptocurrencies.
FAQs
How Can I Ensure The Security Of My Crypto Wallet?
By implementing security features like a password, biometric authentication, and multi-signature wallet, you may increase the security of your digital wallet.
What Is The Market Value Of Cryptocurrency Wallets Globally?
With a compound annual growth rate (CAGR) of 9.2% from 2022 to 2032, the market is expected to grow from its $1,300 million worth in 2021 to $3,371.3 million.