Having a DeFi wallet helps users to retain 100% control over their assets. Multiple cryptocurrencies and tokens can be stored in the wallet, ensuring convenience and flexibility.
Private keys can be utilized by the users to access their funds. It is protected by robust security measures like two-factor authentication and biometric recognition.
DeFi wallets support the creation of multi-wallets, where users can have more than 1 wallet on the platform by either creating new wallets or importing existing wallets.
Another aspect is the support for the Ethereum testnet. This enables users to easily perform transactions on the Testnet blockchain network without facing the risk of losing their real funds.
What are the Advantages of Partnering with a DeFi Wallet Development Company?
- No authorities will interfere in the day to day functioning of the system, ensuring ample freedom for the users of the platform.
- There is no chance of loss of data or swindling of funds as customized private keys are available to every user, giving them sole access to their account. Hence, it is completely immune to hacking attacks, phishing incidents, and data breaches.
- There is also a secret seed phrase available to recover your account in case of any misuse or unauthorized access.
- Since two-factor authentication is integrated into the DeFi wallet, users will be immediately alerted if there is any potential intrusion into their wallet.
- Multi-signature technology requires more than one signature to access a particular account.
- Since transaction limits have been set per day or per week in the wallet, no one can withdraw all the money in one attempt including the owner of the wallet. This reduces the chances of fund mismanagement.
- The majority of funds will be backed up in a secure cold wallet thwarting any chances of hacking.
How to Develop DeFi Wallet?
- Hire a DeFi app development company who will understand what problem you are aiming to solve by developing a DeFi wallet with the help of blockchain technology.
- Design the technical architecture like the cloud framework and opt for either a private, public, or a hybrid blockchain network.
- Finalize the consensus algorithm which will determine how the members of a network authenticate a transaction. It can be either Proof of Work or Proof of Stake. It must be Byzantine fault-tolerant.
- Select the blockchain platform to develop your DeFi wallet. Ethereum is a popular hub for various DeFi projects. It will depend on your business needs and budget.
- Develop the user interface and establish a robust admin console. Hire well-versed front-end developers to ensure utmost user satisfaction. ‘
- Test all the features and functionalities of the DeFi wallet before officially launching it. It is better to choose the MVP (Minimum Viable Product) model for your wallet at an early stage.
- You can scale the DeFi wallet as your business grows.
What are the Different Types available for Developing your Own DeFi Wallet?
- Web wallets are stored in browsers. Users must not share their private keys with anyone. MetaMask, Guarda, and MyEtherWallet are popular examples of web wallets.
- Hardware wallets are a safe avenue for storing your cryptocurrency holdings. They exist in the form of physical wallets like pen drives. Hence, hackers can never access a user’s wallet anytime.
- Mobile wallets can be installed on a user’s smartphone. It is ideal to download the application from the authorized official website of the organization. Coinbase wallet, Trust Wallet, and Argent are common examples of mobile wallets.
- Desktop wallets can be downloaded on a computer or a laptop. They are needed to be handled safely especially when connected to the Internet as there are plenty of risks to take into account while operating online. Electrum and Bitgo are typical examples of Desktop wallets.
Possessing a non-custodial DeFi wallet made by a competent DeFi wallet developer will ensure better asset management. This will also contribute to building an open financial system.