Crypto Academy Week 3 Homework Post for @sapwood

Hello Steemians ,

In this post , I am here to submit my Homework Task 3 which I have carried out as required by @sapwood Crypto Professor.

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(1) Have you ever used a Hardware/software wallet? Which one is having a better security advantage?
(2) What are the important points to consider when you deal with an Exchange (centralized) Wallet & Decentralized wallet. How do you secure/restore both types?
(3) Give an example of a Web 3.0 wallet and what are the distinct uses of a web 3.0 wallet? Have you ever used any Web 3.0 crypto Wallet? Examples?

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First of all, we should know what are hardware wallets and software wallets?

Hardware Wallets

In general, Hardware wallets are like a type of computer that takes away all logic requirements for a small screen, one or two buttons. So there is the simple act of storing the key and signing the transaction. Hardware wallet looks like a small USB devices.

In the case of Hardware wallets, the device is so perfect that it is commercially impossible to hack or infect with anything.

Due to its simple design, Hardware wallets cannot connect to the Internet or run complex apps. They are only a way to store our private keys offline. The hardware wallet is also known as cold storage.

Software Wallets

Software wallets are applications for managing crypto currencies that can be downloaded and installed on your smartphone , on your computers, laptops. You remain in control of your Private keys which cannot be shared or controlled by any third party. There are many software wallets available at the present time.

Now back to the question :

I have never used a hardware wallet before but I use a software wallet ; Tron Link. It is easy to use. I use this wallet only for small transactions. And I am also careful about its sequrity. If in future, I invest Crypto currency in large amount . So I will use hardware wallets .

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Which one is having a better security advantage?

Now , For having a better sequrity advantages I think hardware wallets are more capable for sequrity than software wallets.

Reason - Every day more and more people are joining the crypto world. Usually through online exchange platforms. Each such coin can be stored in one or two ways, in Hardware or Software wallet. Although they have many pros and cons of using each, both wallets give you the ability to store and use your coins safely.

Software wallets are non physical programs that you don't load into your computers. Software wallets are encrypted and requires a password to access the coins you have stored in it. The biggest issue having a software wallet is that it's still connected to the internet . Any recovery phrase and passcode that might be visible on your screen could be seen and recorded by a hacker.

Hardware wallets requires you to plug into a computer your digital currency can be stored into the hardware wallet and will be no longer be stored an online service .

At the end , Hardware Wallets provide the most secure way to store your digital currency. You will never have to worry about your Tokens being hacked or stolen . Even If your computer gets hacked and your wallet is stolen , the thief will be unable to transfer your tokens without knowing your passphrase .

On the other hand

You can use both wallets. You split your funds between Hardware and Software Wallets. Something like 80% and 20% OR 90% and 10% . That means 80% of the funds to be secured in the hardware wallet and 20% of the funds to be more liberty in the software wallet .

If You won't be exchanging your coins anytime soon or investing a large amount of funds , then Hardware Wallets are the best option. & If you want to have quick access to easy money to an exchange digital assets then Software Wallets might be your best way to stock up the currencies.

Exchange ( Centralized ) Wallet and Decentralized wallet

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A centralized exchange is a trading platform that functions like a traditional brokerage or stock market. With Centralized Exchanges intermediaries such as companies act as a middleman in order to facilitate trading on their platform. In order to provide this service, they collect business fees in return. In this, we do not need private key to set up our account, instead we need email account and mobile number.

There are many famous centralized exchanges available. Such as ; Binance , Huobi-pro , Bittrex etc.

Decentralized Exchange is a trading platform in which there is a type of transaction that takes place between peer to peer using the keys of your wallet like public and private keys. Decentralized wallets are a non custodial wallet that you have complete control over. Because you only have the keys on your wallet. Therefore, do not share your keys with anyone and should never be lost. And if we and lost our keys, then the sad fact is that our funds is gone forever..

What are the important points to consider when you deal with an Exchange (centralized) Wallet & Decentralized wallet.

• Before using any wallet, know about your assets whether you are going to use it in the short term or long term. Then you choose your wallet.
• If you are using your assets objectively for a long term, then the descentralized wallet should be used. And If you want to have quick access to easy money or use your assets for short term objective like P2P , Spot Trading , samll transactions, So you should use a Centralized Wallet.
• Before using the wallet, do a thorough inquiry about the wallet in advance. Like, about setting up an account, about the terms and policy.
• You should get complete information about the wallet and how it is used. If you are a newbie, then take information about it from an experienced person.
• The most important point should be considered about its security that your assets will be secure in it. And also know about its transactions fees.

How do you secure/restore Centralized Wallet?

As I have mentioned above, we do not need keys to set up an account in a centralized wallet. We need an email account and mobile number.

To secure wallet, never share your password with anyone, keep it limited to yourself. And you should use 2FA for better security. Even if you forget your password then it is very easy to restore it. You can reset the password by verifying the OTP using your email account or mobile number. And if you lose your phone, then you can reset the password by reactivating your email account. So make sure you have your email and your mobile number active.

How do you secure/restore decentralized Wallet?

For Decentralized wallets , You can restore your wallet using any of the three forms of private keys-- Private key/Mnemonic key/Keystore file. You will always have to keep your keys secure.

A private key is a string of alphanumeric characters.

• You can secure private key by create their PDF and store it in any pen drive, laptop or Google Drive.

• You can secure your keys by write it down on a piece of paper, split it into 3/4 parts and keep them safe, off-line.

• Never take a screenshot, never try to store them in an email or cloud storage facilities.

Web 3.0

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Web 1.0 was an era of slow internet that used dial-up modems to connect to the internet and made noises while they were connecting . It was also an era of when Altavista and Yahoo were a hot thing. At that time it would take about a month to download a movie. It was a read-only.

Then Web 2.0 came around and start replacing the slow internet with broadband connection. Now It wasn't just about surfing the web anymore rather having online intraction through social media platforms. For example : YouTube , Facebook , Wikipedia and many others. It is also called read-write. Web 2.0 is pretty much more of the interactive and collaborative version of Web 1.0

And now we are living in the era of Web 3.0. It is the decentralized . Web 3.0 is that the next generation of Internet technology that relies on the utilization of machine learning and AI. The purpose of Web 3.0 is to create open, connected and intelligent websites and web applications that are very expert by employing machine based understanding of knowledge.

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Web 3.0 Wallet:

• Metamask - Metamask is a browser extension for using th Ethereum blockchain in a normal browser. The Metamask browser extension replaces the Chrome browser with the Ethereum browser. Through which websites get data from the blockchain. Allows users to securely identify and manage transactions. It is powered by the Ethereum blockchain , an amazing combination of technologies.

• Tronlink - Tronlink is a browser extension which is installs a crypto wallet into your browser that allows it to interact with websites specifically Dapps.

Uses

• Metamask is a kind of key that connects us to new types of apps. We can use new applications using this.
• It's a wallet that keeps our data valuable , safe and sound.
• It's a shield that protacts us from hackers and data collectors
• With Metamask , We can explore this new internet safely and securely.

Features of Web 3.0.

• Semantic Web

• Artificial Intelligence

• 3D Graphics

• Connectivity

• Ubiquity

• Data Ownership

• Secure Network

Have you ever used any Web 3.0 crypto Wallet?

Yes, I have used TRONLINK Wallet and am still doing it. But I have never used metamask.

Thank You

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@sapwood