Hi everyone, I would like to thank Professor @sapwood for such an informative and amazingly detailed lecture on Blockchain Wallets. In lecture, every aspect of Blockchain Wallets has been discussed. This lecture has added lot of new things into my knowledge. Now I am here to submit my homework task.

Blockchain Wallets.

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Blockchain Wallets is a digital wallet. It is used to manage, store and transfer one's assets. These are mainly of two kinds.

1. Software Wallet.
2. Hardware wallet.

1. Software Wallet.

It includes web wallet, mobile client and desktop client mainly. As it is clear from the name, these are softwares and do not exist anywhere. These are digital currency wallets and can be used only on computer, web or mobile phone.

Key features.

1. Software wallets are installed on desktop and mobile devices.
2. In terms of web wallet, there is no need to install wallets.
3. As discussed in previous homework, Blockchain wallets provide its users the private keys of different kinds. These are the only way to operate these wallets. So these private keys should be backed up and stored safely.
4. These wallets are very easy and convenient to use.
5. In desktop/mobile client, laptop and mobile should be free from virus or malware.

2. Hardware Wallet.

Hardware wallet is a portable electronic device. These wallets remain in offline environment. These can be connected to a computer or laptop via USB port and bluetooth.

Key features.

1. Hardware wallet does not disclose sensitive information even if it is connected to internet device.
2. It is secure even while signing a transaction.
3. It feels like user has his assets in hand.
4. Very easy and convenient to use.

Examples of Hardware Wallets.

There are different hardware wallets are available in the market. They support many cryptocurrencies other than Bitcoin, Etherum.

Some examples are given below.

1. Ledger Nano X.

It is very famous hardware wallet. It supports more than 30 cryptocurrencies and over 500 ERC-20 tokens.

2. Trezor.

It is another example of hardware wallet being used now a days.

3. Bitbox.

Bitbox is also a hardware wallet.

Have I ever used Hardware/Software Wallet?

In terms of Hardware wallet, I have never used this wallet. While I have used Software wallet. I have used Dogecoin wallet few years ago. I stored my Dogecoin in it.

Which one is having better security advantage?

Hardware Wallets are the best on terms of security point of view. One can access his assets whenever he wants. Moreover, it can be termed as hack-free wallets. There is no risk of theft involved in such wallets.

While Software Wallet can be hacked. So, in other words, assets stored in software wallets are at risk. Assets can be stolen from software wallets. I would like to share my personal experience here. My Dogecoin wallet was hacked and my all Dogecoins were stolen.

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Points to be considered when dealing with an Exchange(centralized) Wallet & Decentralized wallet.

In this part, we will discuss points that needs to be considered while dealing with Exchange (Centralized) wallet and Decentralized wallet.

Exchange Wallet.

An exchange can be of two types. It can be both Centralized or Decentralized. But we will take into consideration Centralized exchange as per our topic. It is a fact that centralized exchanges are at top in terms of trading volume like Binance, Huobi, Bittrex etc. Moreover easy registration process is another good feature of centralized exchange. These exchanges provide users an exchange wallet. It also provides list of supported coins by that particular exchange. These exchanges facilitate users for spot trading, deposit, withdraw, p2p trading etc.

Generally, a user needs email accountand phone number. It also requires users to setup 2FA for more security. Anybody with these essentials can create account with exchange. It requires users to enter OTP/2FA while making a transaction. It is very easy process to make transaction if user have email and phone number intact.

Exchange Wallet is like a bank account. Exchange is the custodian of your assets. In such wallets, users do not have private keys. Users can gain access to the wallet with login credentials/OTP and then perform transaction.

Decentralized wallet.

On the other hand, a Decenterlized wallet is a self-custody wallet. It can also be termed as non-custodial wallet. Users have complete control. The only requisition is that user should have private keys and he can access his account to make transactions. So, in case of Decenterlized wallet, users must save private keys to get access to his wallet.

Keeping in view all the points discussed above, it can easily be concluded that both wallets have merits and demerits attached to them. But both can be used. Centralized wallets can be used for short term trading purposes. While decentralized wallets can be used for long term objectives (HODL).

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In case of any information lost, how to restore access.

If user lost any information like email, password or private keys, both have different process that are discussed below.

Centralized Wallet.

In case of centralized wallet, access can be gained even if user lost mobile number, email address or password. Only restriction in such case is, user cannot withdraw assets for 2/3 days. But still wallet is safe and can be accessed again. So point to be considered is that user should keep such information safe like email address, phone number, password and 2FA.

Decentralized wallet.

In Decentralized wallet, private keys are the only way to gain access. So users of Decentralized wallet should keep private keys very secure. I suggest to save private keys offline.

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Web 3.0 Wallet.

Now let us discuss about Web 3.o wallet. First question that comes into mind is

"What is Web 3.o".

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It can simply be defined as the latest version of the internet services for websites and applications. It provides 3rd generation internet services for applications and websites. In terms of speed, it is the fastest internet technology. It helps in improving the security of connected websites and organize them all. Other name of Web 3.0 is Semantic Web. It is built as absolutely user-centric.

Web 3.0 Wallet.

1. It is built on the idea of absolute ownership. It is a non-custodial wallet.
2. Being decentralized, this wallet is key based. Private keys are the main source to gain access.
3. These wallets should operate through smart contracts.
4. Web 3.0 wallet is compatible and integrated.

Examples of Web 3.0 Wallet.

1. Metamask is the example of Web 3.0. it is a web browser extension. It can be used to interact with dApps of Etherum family.

2. Tron link is another example of web browser extension. dApps of Tron family can be interacted using it.

3. Trust wallet is yet another example. It is a multichain wallet.

These are easy to install as they all are extensions. These can be installed on PC easily. These are very easy in use.

Distinctive uses of Web 3.0 wallet.

1. Interaction with other dApps is the main feature to be considered.
2. It interacts immediately with other dApps.
3. It provides complete control to the owner.
4. Such wallet operates through smart contracts.
5. It is also non-custodial wallet. It means user have the complete control in his hands.
6. This is a key based wallet.

My experience with Web 3.0 Wallet

I am currently using Tron link wallet for my own use. As member of steemit, it is recommended to create Tron link account and I have created account and using this wallet.

This is my homework task for Professor @sapwood. I have tried my best to explain everything in detail. Please comment if something is lacking.

Thanks in anticipation.
@steemitblog
@steemcurator01
@steemcurator02

Regards,

@mawattoo8