Crypto Academy Week 3 Homework Post for [@Sapwood].
This is my first Homework Task for Professor Sapwood's course [India]. I am very excited to start participating in this initiative, it seems to me that it is quite nutritious and necessary for users to have a more solid basic notion in the world of cryptocurrencies.
(1) Have you ever used a Hardware/software wallet? Which one is having a better security advantage?
Yes, I have used a Software wallet, its name is Metamask, it is currently an extension and it works in browsers like Firefox, Google, Brave, etc. Its system method is quite interesting, since the main password is a series of words that the same extension gives you.
I gave it a lot of use a few years ago, when a lot of Airdrops of projects/companies that wanted to launch cryptocurrencies arose, I remember that these Tokens used the Etherum ERC-20 technology.
Unfortunately that year I used it (2018), Chinese regulations occurred, among other factors that caused cryptocurrencies to collapse from their previous price, such as Bitcoin, which in December 2017 touched $ 20,000 per unit. A few months ago I lost the password for that Software wallet as it is stored on a computer that is currently corrupted.
I have not had the opportunity to use a Hardware wallet, if I have read and have knowledge of this type of wallet.
The Hardware wallet and the Software wallet have their advantages, for example, the Software wallet is easier to use, it is generally free, which makes it more accessible and its installation is very fast, the Hardware wallets are connected through of USB Ports or with Bluetooh, it is usually expensive, the wallet shown in the image above is a Ledger Nano X and its value from the Official Store is $ 119, but this has a higher level of security since they are used in the offline environment, that means that Softwre wallets will always be more exposed to hackers, so it is recommended to store the private keys somewhere that is offline.
Multi-chain wallets are essential for people who only dedicate themselves to one main cryptocurrency and their family, as in the case of Bitcoin or Ethereum, this can be Hardware or Software.
(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?
It should be noted that centralized and decentralized wallets have advantages as well as disadvantages, here are several important points to take regarding each type of wallet:
Exchange Wallet (Centralized)
You have no control of private keys, they access the wallet through permissions, such as login or OTP.
It can be said that the exchanges are made through an intermediary (Exchange). (Binance, Poloniex, etc)
Like financial institutions, they store and safeguard assets, but exchanges are more adapted to the financial market.
It is frequently more threatened by hackers.
It is advisable to make a backup copy of the 2FA, however, if a user loses their phone/2FA/password, they can recover the account, it may even be necessary for the Exchange to recognize their identity.
Descentralized Wallet.
The user has absolute control, there is no custody.
Being of absolute control, no third party is needed to carry out the exchanges
In general, the commissions are usually lower.
It is recommended to use it with long-term objectives (HODL, absolute control, etc.)
If you lose your private key, you will not be able to access your wallet again.
(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?
The best example I can give of a wallet with Web 3.0 technology is the wallet that I have used the most, as I said before this is Metamask, created on July 14, 2016. Metamask bridges the gap between Web browsers and DApps, allows interaction with DApps on the Ethereum Blockchain, allows users to interact with DApps on the Ethereum Blockchain.
It also allows the creation of accounts with HD, this means that users can make backup copies through the seeds, it allows the use of multiple accounts and Etherem networks, mainly thanks to the creation of usage profiles.
Web 3.0 reflects technological revolution and brings us closer and closer to an environment with more opportunities, Web 3.0 brings an anti-monopoly and pro-privacy structure, it does not need intermediaries and all this in turn, means that the 3.0 network is safer than the previous ones.
Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@sapwood.
> Mentions:- @booming01 @booming02 @booming03 @booming04
Thank you for attending the lecture in Steemit-Crypto-Academy & doing the homework task-3.
A multichain wallet may not necessarily represent a single-family(Blockchain) and its tribes. It can also be a family of heterogenous Blockchains.
In fact, these days Multichain wallets with web 3.0 features are more prevalent than the others and Single-chain wallets like TronLink and Metamask are for targeted use. Both types are quite popular today.
In deed, Metamask is popular web 3.0 wallet and with the DeFi boom, its use and relevance has definitely galvanized the use-case of a Web 3.0 wallet.
Thank you.
Homework Task -3
[7.5]
Thanks teacher!