Modern tech startups are striving to break down the boundaries between the virtual and real world with blockchain technology that is changing our world. Distributed technologies in mobile applications allow today to integrate cryptocurrency payments along with other internet payment options. You can build a bitcoin wallet to suit the business needs or integrate it for use as a payment method.
In this article, we are going to discuss cryptocurrency wallets, their types, benefits, main features, and challenges.
What are the types of bitcoin wallets?
Bitcoin wallets can be divided into two categories: hot and cold.
Desktop
Desktop wallets are intended for a desktop computer and give people complete control over the wallet. Desktop wallets function as an address where a user can send and receive bitcoins. They also allow the customer to store the private key. Several notable desktop wallets include Bitcoin Core, MultiBit, Armory, Hive OS X, and Electrum.
Mobile
Mobile wallets have the same features as desktop wallets. But they make it easy to pay at physical stores by scanning QR codes with touch-to-pay and Near Field Communication (NFC). Bitcoin Wallet, Hive Android, and Mycelium Bitcoin Wallet are examples of mobile wallets. Bitcoin wallets are generally compatible with the iOS or Android system. There is a considerable amount of malware posing as bitcoin wallets, so it is a good idea to research your options before deciding the one to use.
Web
Web wallets make it easy to access bitcoins from anywhere, from any browser or mobile device. Choosing your web wallet should be done carefully as it stores your private keys online. Coinbase and Blockchain are popular web wallet providers.
Now that we’ve talked about the features that need to be integrated when building a Bitcoin wallet, it’s time to talk about the technical side of building a Bitcoin wallet app.
If you are building a web bitcoin wallet app, you should use Angular JS 10.0 and above to build the frontend along with HTML5 and CSS3. Use Node JS to create the back end, and you can use AWS to set up the server.
We highly recommend our clients develop cross-platform solutions. This shouldn’t come as a surprise – using this approach allows companies to save time, money, and effort. Thus, you will need React Native to create a frontend and API service using Node JS for the backend.
Moreover, for signing and verifying data with Ethereum keys we should create a collection of functions. Typescript fits the best for it.
However, if building an app from scratch isn’t what you want to do, you can easily use the public libraries available on the web to build your app.
These libraries will implement the standard functionality of your application and synchronize it with the blockchain. Some of the great examples of public libraries are Chain-Java and BitcoinJ.
Challenges of crypto wallet development
The crypto wallet development is a complicated task. So, you should be ready for the pitfalls you may face. Here is the list of the main of them.
Regulation
The legal status of cryptocurrencies and blockchain technology varies significantly from country to country.
Initial costs
Blockchain promises long-term cost savings, but its implementation requires a high initial price.
Integration with legacy systems
To migrate to a blockchain-based system, a company must either completely redesign its existing system or integrate it with a blockchain solution; both processes can take a lot of time, money, and experience
Power consumption
Blockchain networks require a significant amount of computing power to function; this can be a limiting factor for many companies
Read more: https://code-care.com/blog/cryptocurrency-wallet-app-development/
