Steps to Create Shared Bitcoin Wallet and Why to Use One

Cryptocurrencies is one of the biggest known term now a day and is all set to gain more in future. One of the very amusing feature is smart contract which is basically programmable money. Smart contracts are the automated transactions which are based on certain conditions. Multi-signature action or shared wallet is the application of smart contract.

How shared Bitcoin wallet(Multisig) works

The bitcoin shared wallet application allows users to store both Bitcoin cash(BCH) and Bitcoin core(BTC) and the ability to create shared wallet. Creating a shared wallet is not that touch and gives the advantage of extra security. These shared wallets are also called as multisig(multisignature) wallets.

Multi-signature wallets are close to joint accounts in traditional banking system and is accessible by two or more users. Every transaction in Bitcoin shared wallet must be authorized by all the authoritative holders. Before you spend any coin, it must be approved by co-signer. If the requirement to create a community or trust managed fund these wallets are the perfect solution.

Why use multisig wallet

Shared wallets are the ordinary wallets with not so ordinary features. Using shared wallets has its own advantages and few of them is here:

-       Security: Shared wallets secures all your transactions either for single user multiple devices or shared accounts. A single user can also secure all the transactions of the wallet by creating a shred wallet. If in case due to any reason you lose your smart phone you need not to worry about the transactions. Reason being the thief would not be able to execute any transaction as it requires permissions from co-signers. This automatically increases the security for you.

Account history: It plays an important role in management of shared account history. When the account is jointly owned all the co-owners has access to the history and passbook of shared wallet which helps in accounting management.

Consent of all co-owners: As the wallet belongs to group of people any transaction or action seeks opinion of all the parties. Since the transaction cannot be authorized without the required authorization from the co-owners it promotes mutual consent from all within app.

3^rd party Escrow or mediation: In the cases where you want to buy something online or make any bet.

How to create shared wallets

Download and install Bitcoin.com wallet app. The application is available for iOS, Linux, windows, android.

Navigate to home screen and click on “+” icon to create your wallet.

Select create shared wallet from “add wallet”.

There comes the account set up. Choose your wallet name, your name, Number of co-payers, total number of signature required etc.

The number of co-payers is all the users who has access to this shared wallet and the number of signature required is the minimum number of signature required to complete a transaction with consent.

Once you will click on create a wallet you need to share the invite code with all the co-payers to join the wallet. You can scan the code or copy the text of block and share among all.

You must be thinking that wallet is shared so where is the individual security however it is secured at individual level. Each co-signer will have their own private key which will grant them access to their own wallet.

Note: -

Always keep the number of required signatories less than number of co-signers so that of any of the co-signer loses the device you can still execute the transaction.

Always keep backup of your shared wallet and it is advised to all the participants of shared wallet.

What is Proof of Stake wallet? Why it is important?

Blockchain is the new revolution and there is a lot to explore in this technology. Every now and then we come to know something new or a new term. Proof of stake is a term which is very common in terms of Blockchain and is attracting lot of attention these days.

It is an alternative transaction verification process on Blockchain. Proof of stake works differ than proof of work. Unlike Proof of work, it depends on the Altcoins or Cryptocurrencies you own. The system chooses the forger/miner in a random fashion based on the number of currencies they hold. These forgers can mine and validate the transactions and create new blocks. Proof of stake requires complete ownership and to mine or create new blocks, holders need to put their own asset on stake. If they validate a fraud transaction they will lose rights to validate coins in future and will lose their coins on stake. If they validate right transactions, they will receive rewards. 

Why do we need Proof of stake wallet?

Owning a crypto asset is like owning fiat. You need a wallet to store and keep your asset safe. You will find number of crypto wallets online these days however not all of them will provide you all the benefits hence choosing one of them is a task. One such wallet is a proof of stake wallet which is being adopted by Ethereum and is it is in talks more these days. Coin like Ethereum has adopted this process which means there must be something big or unique with this.

Proof of stake wallet offers you a platform to store your digital currency safe, secure and private. It allows you to generate blocks and earn rewards on the stake of Cryptocurrencies you own. This assures instant and unlimited low fee transactions with high interest on your holdings. You can increase your coins with your holdings and this totally depends on the number of cryptos you hold.

Final thought

This model seems to be attractive, unique and worth giving a thought. There are number of digital wallets emerging to store crypto assets, so the competition is not easy. One must be promising to stand in this volatile digital world. As far as the benefits and advancement of the wallet, Proof of stake wallet surely deserves a chance.

What is Cryptocurrency Wallet, How to Choose One?

A wallet is something where you store your money so is the cryptocurrency wallet with the difference that you store your virtual money which is cryptocurrencies. So basically, a cryptocurrency wallet is secure digital wallet to store, send and receive any digital currency. If you want to use any cryptocurrency, a cryptocurrency wallet is a must. Every cryptocurrency has their own wallets or there are some third-party wallets for some.

Crypto Wallet

How does a cryptocurrency wallet Works?

So yes, these wallets store virtual currencies(cryptocurrencies) however, there must be some entity in the form of which virtual currency is stored or measured. The tokens are stored in the form of public and private keys which interacts with various blockchains to enable send and receive feature and monitors the balance.

Some wallets you can look to

There is a wide range of crypto wallets as no wallet supports all the coins however few of the wallets support more than one coin. Crypto wallets are secure however the extent depends on the wallet you are using. Do your own research before using any wallet and use official wallet of the coin if available like litecoin core, Bitcoin core wallet Ethereum wallet or MyEtherWallet for Litecoin, bitcoin, and Ethereum based coins respectively.

There are some custodial wallets as well where you do not need to control your private key but are kept on third party company servers. Coinbase is such an exchange where you need to put your tokens in a custodial wallet. You have to have trust in custodians as they make transactions with your tokens on your behalf.

Security

Crypto wallets are secure but as said above the extent to which it is secured depends upon the wallet you are using. The security of your wallet is based upon the best practice.

1. Always use google authenticator for another layer of security.

2.You should not share your wallet password with anyone.

3. Do not store a large number of tokens for long if not in use.

4. Always take a back-up of your account because if you lose your wallet or private key you lose your money.

These wallets aren’t tied with any physical entity, however, all the transactions are stored on the blockchain. Before choosing any wallet, you have to be sure about your intent. There is an unending list of growing wallets but you should take your time to choose one for you. It’s always good to invest in cryptocurrencies and better than that if you are playing safe with your asset.