Jun 13 in Education
What is a Crypto Wallet?
To understand crypto wallets fully, we have to understand some concepts about the blockchain, which will help us in understanding how a wallet aids us. Let's start off.
What is an address? 🤨
An address is a string of text generated using cryptography to represent your account on the blockchain. This address can be shared publicly with others, and is completely safe to do so. You can send and receive funds from and to your wallet address. Basically, the address is your unique identifier on the blockchain and represents your 'account.'
What are private keys? 🔐
A private key is the counterpart to an address. Each address has an associated private key. As the name suggests though, this is meant to be kept private and not shared with anyone.
You can think of it like a password, a really strong one, that contains a bunch of letters and numbers that allow you to prove ownership over your address. Anyone who has the private key has access to make transactions from your address i.e. send money from your address to theirs.
What is a seed phrase? 👮♀️
A seed phrase is like a master password - the password of passwords!
Think of a password manager, something like Lastpass or 1Password. These applications, within them, store your usernames and passwords for other apps securely, and themselves have a password. So, if someone hacks your password manager, they also get access to all accounts stored within it.
A crypto wallet is kind of like a password manager, where you can manage multiple blockchain accounts. If the private key is the password to a single account, the seed phrase is kind of like the master password for that wallet.
What is a crypto wallet then? 😛
Crypto wallets are a manager for your accounts, and mainly their private keys. They also allow you to interact with decentralized applications, and allow connecting to a dApp through the wallet, acting as a single sign-on for all applications built on the blockchain.
At LearnWeb3 as well, you can go into the Settings and connect your crypto wallet (after you have set it up), which will let us know what your address is so we can send you some sick NFTs when you graduate from our tracks!
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What is a Crypto Wallet?
