Cryptocurrency wallets are used to access, store, send or receive our digital currencies such as Bitcoin, Ethereum, Litecoin and much more which wouldn’t be possible otherwise. Cryptocurrency wallet is a software programme that stores the owners private and public key. It is the link to various blockchains in the market and it allows the users to perform different actions like checking wallet balance, sending or receiving cryptocurrencies.
The most basic yet the most important feature of a wallet is that it lets you send or receive cryptocurrencies apart from the security it offers to the users to carry out such transactions. It is vital to understand how the wallets work with the blockchain before we start implementing the security features. The basic features will be the same for every wallet in the market. To understand how we can secure the wallet it is critical to understand how bitcoin transactions work in the first place. Let us take Alice and Bob in this example and let Alice be the sender and bob be the receiver. Both Alice and Bob will have a pair of private and public keys. For Alice to send the bitcoins to Bob the transaction will be signed my Alice’s private key. It will be later verified using Alice’s public key that the transaction was signed by Alice and not by anyone else. Now one of the key problems is to prevent an attacker from stealing the private key of the owner because if the private key gets compromised then anyone can use it to sign the transactions and send money to their own addresses.
wallet login will be secured by two-factor authetication
Transactons will be made secure using multisig technology
key management will become easy by using seeds
With the advent of digital currencies there have been raising concerns about the security protocols being used to secure their use. The crypto currencies and the underlying technology blockchain is secure but the way we humans interact with these technologies makes them unsecure. There have been numerous cases of people losing their crypto currencies because of their account passwords getting leaked. There could be many reasons for the passwords getting leaked. Weak authentication is a threat to the crypto wallet industry. People when signing up for an online account tend to click photos of their passwords and save them in their machines or email it to their accounts without knowing the repercussions. There have been cases when hackers get unauthorized access to email accounts to reset account passwords and then get access to their funds eventually. These are some of the issues that stop people from embracing these technologies that are otherwise secure. This project will integrate some security features that will make Cryptocurrency wallets secure.