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Hello there again.πππππππππππ
It's @cosai99 with the next homework post for task 9, Steemit CrytpAcademy Season 5, Introductory Course. It is with great exhilaration that I get to share with you the next topic. Today we are going to discuss one of the features of the Blockchain Network, The Blockchain Wallet. We will discuss the uses, types as well as installation and restoration of such wallets. We will also describe steps you should take during the installation and restorations and a few tips you should consider. This lecture was facilitated by @sapwood and reviewed by @nane15 and @dilchamo.
Let's begin. πββοΈπββοΈπ«π«π«π«π«π«
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# Overview of Blockchain Wallet( Types, Uses, Installation, Restoration, etc.)πΌπ΅π
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In today's world, we keep money in wallets, similar to the money pouches used in the early 15th and 16th Centuries. We use them to keep the money for various transactions as we carry out our daily, which may be business-related. We secured them by tieing them with cords, as in the case of the money pouches, or put them in secure places like bags and pockets just like the wallet. In the bank, it is required of you to create an account to keep your assets for transactions. The assets owned are kept safe in a confined area, maybe a vault or a box locked with a key, which is unique to the owner only.
In the same way, the Blockchain Network which deals with cryptocurrencies also needs such a feature. Users will need a "Wallet" to safe keep their crypto assets since the blockchain functions as a DeFi system.
Let's take a deep look at the matter then.
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.coinbase.com%2Flearn%2Fcrypto-basics%2Fwhat-is-a-crypto-wallet&psig=AOvVaw1xSH7VexUGLYrCLyHyogyC&ust=1637231800852000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCNDytfOZn_QCFQAAAAAdAAAAABAD)
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**Crypto-Wallets** are digital storage spaces that allow you to transfer crypto between your *Private key wallet* to your Trading account and also between your Trading account to external addresses. It is also used to manage crypto assets that are stored by the user. It must be known that every wallet charges an amount of fee, *Transaction fee* and this varies from the extent of the transaction size and the crypto used in the transaction. The wallet can act as a ledger, keeping records of all transactions initiated by the user, thus creating a *transaction history.* The wallet is usually a dApp as it is based on the blockchain network and should be able to communicate with other dApps on the blockchain.
Now, there are types of wallets based on various features and functionality. Let's take a look at them.
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**Based on technology used.**
*Hardware Wallets*
These are wallets that operate offline and hence need a hardware device to function. Usually, USB drives or pen drives are used as hardware wallets.
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fcoinsutra.com%2Fbest-hardware-wallet-bitcoin%2F&psig=AOvVaw39FMT-LLulAfQBVTwHl3ql&ust=1637233581462000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCOjirNSgn_QCFQAAAAAdAAAAABAQ)
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Here, even if you sign in and confirm a transaction, there risk level of losing your assets due to cyber attacks like hacking is lowered, and hence wouldn't need to worry all because the information is stored in the hardware wallet. To use, it has to be connected to a laptop or desktop and assessed by the blockchain network to initiate a transaction.
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.123rf.com%2Fphoto_129943128_stock-vector-hardware-wallet-concept-icon-storing-private-keys-in-storage-device-idea-thin-line-illustration-maki.html&psig=AOvVaw25d9paE1zlTqCAJ8P0kr3X&ust=1637235197661000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCNi_5camn_QCFQAAAAAdAAAAABAK)
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Examples are *Trezor One and Ledger Nano X.*
*Software wallets*
As opposed to the technology used here, software wallets are installed as applications or extensions on the device, assessed, and connected to the blockchain network. They come in 3 forms;
- *As web browser extensions, where you do not need to download them on the device but rather add them as a browser extension, and then connect them to the blockchain network. Examples are Metamask and TronLink wallets.*
- *As desktop clients, installing their applications based on the operating system of either the desktop or laptop, that is
Windows or Machintosh(Mac).*
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.vectorstock.com%2Froyalty-free-vector%2Fdesktop-wallet-blue-concept-icon-money-vector-29161084&psig=AOvVaw3VuFUAJGV_qFi1W2HebCWc&ust=1637234251017000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCICc6Liln_QCFQAAAAAdAAAAABAI)
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- *As mobile clients, where you need to install applications of the wallets based on the mobile User interface, which is Andriod or iOS. Users feel safer with this kind of wallet as it grants them a feeling of holding on to their wallets physically.*
It must be known that as compared to hardware wallets, software wallets are exposed to a higher risk of being attacked by cyber threats like malware, bugs, or hacking and this is especially noted in desktop clients.
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**Based on the working environment.**
*Hot Wallets*
This is synonymous with software wallets in the sense that they need to work or run in an **online environment**. Its working dynamics are similar to that of software wallets as well as its disadvantage.
*Cold Wallets*
These kinds of wallets work in an **offline environment**, just like hardware wallets. They also offer high protection against attacks from malware, bugs, or hacking.
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.vectorstock.com%2Froyalty-free-vector%2Fcold-storage-concept-icon-hardware-wallet-idea-vector-29161114&psig=AOvVaw25d9paE1zlTqCAJ8P0kr3X&ust=1637235197661000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCNi_5camn_QCFQAAAAAdAAAAABAP)
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**Based on the absence or presence of seed keys.**
*Non-deterministic Wallets*
These wallets do not have seed keys. Hence, for each time such a wallet is used, a new password(private keys) and public addresses have to be generated and kept due to the absence of a seed key. Therefore, the onus falls on the user to keep backing up passwords and keeping them as long as it is used. This makes the management of keys of users very tasking for the blockchain networks and also by users.
Examples of such wallets are wallets belonging to the *Mycelium and Trezor* systems.
*Deterministic Wallets*
In contrast to non-deterministic wallets, these wallets have seed keys and hence any new password or public address created will be linked to the seed key. Hence, only the seed keys would need to be safeguarded for any recovery needed. These seed keys are mnemonic seed phases and are mostly 12-24 phrases. Therefore, there wouldn't be a need to keep every new password or private key and public address created and hence makes easy management of keys in the blockchain system. Modern-day wallets use these kinds of wallets which makes use of mnemonic private keys.
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fbrax.gg%2Fblockchain-developer-lesson-1%2F&psig=AOvVaw3vvsKwhiY0UwYf9OuGY6rP&ust=1637236309496000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCKiKhOKqn_QCFQAAAAAdAAAAABA1)
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**Based on the number of crypto tokens stored(or blockchains linked).**
*Single-chain wallet*
These kinds of wallets only work with the native crypto token provided by the blockchain it is embedded in. They are unable to work with the other tokens from other blockchains. These are targeted for use by miners in the blockchain network or for sending/receiving native tokens.
An example is *TronLink which works with only TRC-20 tokens.*
*Multi-chain Wallet*
They are wallets that are interconnected with a lot of blockchain networks. You can access other cryptos with such wallets with ease. Here, the transaction fees vary about the exchange rate of the crypto of interest. Swapping can be allowed here easily.
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[Image Source](https://www.google.com/url?sa=i&url=https%3A%2F%2Fdailyfintech.com%2F2020%2F08%2F31%2Fcrypto-built-on-top-crypto-wallets%2F&psig=AOvVaw3djV2LMczurkzjcl4JyI5f&ust=1637238301339000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCJC8oZKyn_QCFQAAAAAdAAAAABAQ)
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An example is *Binance wallet which has a lot of crypto from various blockchain networks.*
Now that we have explored the world of crypto wallets, let's now look at the types of private keys invoked in securing such wallets.
*Alphanumeric Private Keys.*
These are a string of letters and numbers, in a cryptographic form, indicating a set of codes(hexadecimal codes) securing the wallets.
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[Example of an Alphanumeric Private Key](https://www.google.com/url?sa=i&url=https%3A%2F%2Fox-currencies.com%2Fhow-a-bitcoin-wallet-works-everything-explained%2F&psig=AOvVaw1AFiYhYBEeHGlOL99nwX8-&ust=1637313613611000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCMD6id7KofQCFQAAAAAdAAAAABAD)
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These codes are only decrypted by the algorithm running the blockchain wallet but appear as random characters to the user. This is one of the wonders of cryptography.
The STEEM blockchain uses this kind of private key.
*Mnemonic Seed keys*
These also are cryptographic sets of codes used by some blockchain wallets. These contain phrases, from 12 to 24 simples phrases, that are private keys for the wallets.
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[Mnemonic Phrase example](https://www.google.com/url?sa=i&url=https%3A%2F%2Fcoinsutra.com%2Fmnemonic-passphrase%2F&psig=AOvVaw1l6Blrcm3flh1S-DNcDB19&ust=1637314101264000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCPi7xMDMofQCFQAAAAAdAAAAABAD)
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They are needed for securing and recovering the wallet and should be kept safe somewhere. They follow a particular sequence and hence this is the edge that grants security to wallets. Hence, just knowing the phrases won't do.
*Metamask* of the Ethereum blockchain uses this cryptographic technology for generating private keys for wallets.
*Keystore files(JSON files)*
These are files created or better said, generated, on the onset of creating the wallet but these alone aren't enough to call private keys. What makes these special is that you need to create your password in addition to these JSON files to form a complete private key to your wallet.
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[A JSON file from Binance account](https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.mql5.com%2Fen%2Fblogs%2Fpost%2F721377&psig=AOvVaw0Ekig_3bMI-TKsNPTocBJr&ust=1637314555911000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCPCuy5nOofQCFQAAAAAdAAAAABAD)
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These resemble codes for computing programs like *Javascript*.
We must know that the blockchain wallet is secure due to its cryptographic nature making it difficult to decipher by normal means and also that the information contained can't be changed at all, making it immutable.
Given that let's start today's task
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## QUESTION 3
> *If you have already installed your TronLInk wallet, demonstrate how do you export your account?*
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TronLink wallet can be exported to another wallet in just a few simple steps.
- Open your Tronlink wallet either by application or by extension as in this case. Click on the Menu button next to the
"Unconnected" display as shown below.
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- Key in your password you set to the Tronlink wallet and Click on "Confirm"
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- Choose any of the types of private keys you wish to export. Here, I chose to use the alphanumeric private key.
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- Click on "Copy" to copy the key and click on "I have saved it securely" to finish the process to export to wherever you wish to export to.
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> *Which form of the private key are you comfortable with to deal with your wallet? How do your store your keys?*
I prefer to deal with the Mnemonic seed keys when talking about private keys to a wallet.
*Why?*
Because these can be used to gain access to the wallet, they can also be used to restore the wallet if something were to happen. Also, knowing the phrases isn't enough since you would require also the sequence in which they were generated. This gives double the security.
Also, as Prof. @sapwood described, it would be best to write the keys down on paper, splitting them into parts and keeping them secured at a safe location, and if you will even keep them in a safe.
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> *Demonstrate your experience with all three forms of keys during the installation/restoration of the TronLink wallet? Include screenshots and hide/blur the sensitive information.*
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Restoring the Tronlink account is very easy and can be done in a few minutes.
- Download the TronLink from *https://www.tronlink.org*
- After installing the app or the extension, set a password for the wallet.
- Click on "Restore"
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- After, you choose the kind of private key you would want to use to restore your wallet. Either Alphanumeric private key, mnemonic key, or Keystore file.
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- If the mnemonic key, then you provide the seed phrases and click "continue" to restore.
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- If Keystore file, then you provide the file by importing and providing the password you use to sign in into the wallet and click on "continue".
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So here are the ways to restore your wallet with the various types of private keys.
# Conclusion
So in this task, we were able to explore the blockchain wallet and its uses. Also, we were able to look at the types of wallets and the installation of wallets. We explained the types of private keys used to secure the wallets as well. So, now we have in-depth knowledge of blockchain wallets and when we meet, them I hope we can exploit them to fully experience the world of crypto-trading.
Thank you for your time @sapwood, @nane15, @dilchamoπππππππππ
**NB**: All unreferenced screenshots are as a result of the fact that they were from a browser extension and hence did not have website addresses.
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