Secure Bitcoin Wallets (Mobile) - Part IIl
2017-05-25 00:00:00:
The financial phenomenon called Bitcoin, marked the beginning of the formation of a new kind of monetary relationship online. It is known that cryptocurrencies in general are virtual means of payment that have no material embodiment. For their storage, the same virtual storages were developed, some analogy of the wallets familiar to all, with which you can store cryptocapital and dispose of it at your own will. The evolution of cryptocurrency wallets took place along with the development of alternative monetary units and several varieties of them were developed about one category, in particular, about mobile wallets and will be discussed in this article.
The first bitcoin wallets allowed storing savings only on computers, which required users to download a huge amount of data. The developers did not stop there by introducing Bitcoin wallets for a mobile device. As a rule, the main part of the database in such a wallet is stored on the server.
The development of a purse designed to work on mobile phones or various other modern gadgets was the development and spread of the Internet. Modern smartphones have become a massive attribute of the everyday life of modern inhabitants, and mobile traffic is already very cheap. Thanks to this and the improvement in the functionality of gadgets, it became possible to use them on the web without any restrictions, including for making money transfers.
A mobile wallet is not a place to store your savings
Unlike stationary counterparts, mobile applications are very practical to use and have a significantly low information capacity. They occupy only a small amount of the total memory of the device. Although, on the other hand, this is also the main disadvantage of this type of wallets.
But dont think of the "light client" as the ideal way to store your savings. All members of the Bitcoin community are constantly reminded of this. A mobile service is a great way to store small amounts of money that are used for everyday payment - like a regular wallet. The main part of Bitcoin savings should not be located on third-party servers, but in a safe and secure place, which include cold storage methods and desktop wallets.
Functionality
First of all, the Bitcoin wallet of a mobile device is distinguished by the convenience of paying for services and goods with digital currency. The wallet is powered by QR code scanning technology as well as NFS, which is known as high frequency contactless communication. Essentially, NFS is an advanced Bluetooth technology with high speed connections. Any device equipped with simple software turns into an ordinary wallet. Setting a strong password will exclude the possibility of stealing Bitcoins even if it is lost.
To pay using a mobile Bitcoin wallet, you do not need to enter the entire set of numbers and letters that make up the cryptocurrency address. After scanning the QR code with a tablet or phone camera, payment is confirmed. Currently, this method is used all over the world, and the process itself takes no more time than paying with a traditional bank card.
Modern wallets for cryptocurrency are constantly being improved and offer many additional options in the form of an address book, calculator, exchange service and others.
The difficulty for most users is that they are offered different types of digital wallets and choosing the right one is very difficult. In order to simplify this task, you need to navigate the main types of wallets that are relevant today.
Blockchain: The Most Popular Digital Wallet Service
Blockchain is the most common resource in terms of the number of users. The company has been operating since 2011. The headquarters are located in London. Blockchain calls its Internet wallets the most secure and functional in the world.
According to the information presented on the official website, the total number of users exceeds 8 million. The service covers the whole world and offers several types of wallets for the user to choose. The owner of the Blockchain mobile Bitcoin wallet gets full control over the keys (as opposed to the online version). The program interface is absolutely clear. Also, the service is fully Russified.
For professionals, Blockchain is primarily known as a Bitcoin explorer. The system does not offer customers "cold storage" of cryptocurrency. But in other matters, the full range of specialized services is quite voluminous.
Installation of a mobile wallet takes place within one minute, after which the user can immediately start financial transactions. At the same time, a very important difference of the service is that it is impossible to replenish the Blockchain Bitcoin wallet directly through the purchase of cryptocurrency. Blockchain encourages its customers to buy Bitcoins elsewhere and then transfer funds to the wallet. Thus, the system excludes there was interference in its activities by government regulators, which cannot be said about some Blockchain competitors. It is worth emphasizing that a huge number of Blockchain service clients are represented by residents of South America, in which people are disappointed in the current financial systems.
The appearance of the mobile wallet is very simple and resembles the design of the companys website. The sending speed is standard.
The security system includes two-factor protection. To store the keys of the Blockchain Bitcoin wallet, it is proposed to create an encrypted version directly in the memory of the gadget. The keys can also be sent by email and copied to an external drive.
Storage from Xapo
The Xapo wallet from the international company of the same name, whose headquarters is located in Switzerland, is positioned as a reliable savings for Bitcoins. The company is included in the list of young but promising startups. Along with services for mobile users, Xapo offers cold storage of cryptocurrencies.
A special feature of the service is the issuance of debit cards in cryptocurrency that can be used in terminal networks around the world. The card can be issued directly when registering a mobile wallet. Also, new users get 5000 Satoshi as a bonus for the Xapo wallet for Bitcoins. The main advantages of the wallet:
The convenience of use.
No commission when withdrawing funds.
No need to collect the minimum amount to withdraw funds from taps (even 1 satoshi is withdrawn).
Referral program.
The service is Russified.
To buy Bitcoins, as well as to withdraw them, the system requires mandatory verification. Directly in the account management menu, the user can transfer funds to the safe deposit box. Thus, the owners of the Xapo company decided to secure the Bitcoin wallet for each user in the event of hacker attacks. In this case, the service is provided on a paid basis. In general, the security system provides for two-factor authentication, which should provide full protection of funds.
The service has access to the keys of each client, and this is a significant disadvantage of Xapo. Also, the company is not distinguished by the efficiency of the technical support service. For other issues, the service offers convenient, profitable and safe solutions.
Bitcoin Wallet - a wallet with many functions
Bitcoin Wallet is the first wallet designed for mobile phones. Registration is not required to use the service. The wallet is completely decentralized and is intended primarily for users who do not understand high technologies.
The design of the wallet is clear at first glance even to an inexperienced user. Color customization of the interface is provided. In addition, BitWallet allows you to create means of access to other wallets on the device that can be used on various operating systems. Nevertheless, BitWallet is designed specifically for Android and may well claim to be one of the best wallets for instant payments, given its huge functionality.
Characteristic differences
Peer-to-peer technology operation.
Multi-currency support.
Display of funds in Bitcoins and Satoshi.
User notification of receipt of funds.
The ability to store the addresses that are used most often.
The presence of a widget informing about the balance of funds on the balance.
In addition to the standard payment method by sending addresses, BitWallet wallet allows you to use QR codes and NFC technology. In the absence of a network, payment and acceptance of funds can be carried out via Bluetooth.
BitWallet has many advantages, among which security is an important one. It is not for nothing that the source code of this wallet is used as the basis for wallets of other popular services, for example, Blockchain. Also, this type of wallet is recommended for use at bitcoin.org. At the same time, multicurrency support, the ability to view private keys and other options do not reflect in the best way on the clients speed. The numerous options that the BitWallet wallet is literally stuffed with reduce the speed of work. Therefore, ordinary users should pay attention to other wallets.
Best Bitcoin wallet: BreadWallet for iOS users
There are very few offerings in the digital wallet market for iOS devices. Over the past two years, BreadWallet has held the lead. In 2016, the company introduced a new development - a digital wallet for Android, which, according to the developers, is the most popular in the world.
If we talk about software for iOS, then the company offers a convenient application that allows you to quickly deal with sending and receiving Bitcoins.
To receive crypto coins, the Breadwallet wallet is presented as an independent application that does not need to be connected to third-party resources. It means that each user gets full control over their funds and does not depend on third parties. The wallet takes up a minimum of space and at the same time is characterized by high speed, which is achieved due to synchronization using SPV technology.
Wallet data protection is poor. For information security, data backup is not provided, since addresses are found using one mnemonic phrase. Thus, in case of loss or theft of the device, it will not be difficult to restore the Breadwallet wallet.
The multi-signature, which has been used for the security of transactions since 2014, is not provided in the wallet for iOS devices. Also, there is no two-factor verification, authentication, which causes confusion for many members of the Bitcoin community who are worried about the security of their funds.
Despite its security flaws, BreadWallet currently has no worthy competition in its segment. But given the trends in the development of the digital cash market, as well as the urgent problems of their security, most likely, the BreadWallet wallet will be modified in the near future.
Coinbase digital wallet: high security and minimum privacy
Coinbase is owned by an American company headquartered in San Francisco. In terms of the total number of users, the company is the main competitor to Blockchain. As of July 2016, more than 4 million people use Coinbase wallets.
The system provides the ability to buy cryptocurrency through bank cards and withdraw it in the same way. However, many clients are outraged by the lack of privacy in their transactions. So, to withdraw funds, the user must upload a scan or photo of his passport, as well as a number of additional data.
The company fully owns the keys of customers, which also carries certain risks and is a disadvantage. The system does not provide a backup copy of data. User identification is two-factor. If the client wishes, the Coinbase wallet can be integrated with the Google service. An additional element of transaction security is the Multisig option. Several different keys must be used for each transfer.
Registration is in a standard format. You dont need to leave your Coinbase wallet to exchange Bitcoins for any other currency. Each user is automatically provided with an electronic wallet in euros. A separate service of the company is the Instant exchange office, which allows wallet owners to perform conversion operations with Bitcoin at the most favorable rate.
The system also offers a referral program, according to the terms of which, for each attracted user with a turnover of $ 100, the owner of the Coinbase wallet is charged 10% of the bonus amount. For the convenience of paying for services and goods, it is recommended to use the special Fold Mobile client.
Mycelium: a functional wallet for specific tasks
Despite the fact that the Austrian company Mycelium has been operating in the decentralized messaging market since 2008 and is directly related to the existence of Bitcoin, its mobile wallet came out somewhat later than other peers.
In 2016, the company updated the previous version, presenting the world with a new technological solution for doing business, as well as using it for the most common purposes - making purchases. The new Mycelium wallet stands out for its simplicity. All buttons are presented to the user on one screen, which does not need to be left when performing various operations.
The mobile wallet is designed to fulfill strictly defined tasks, downloads quickly, is easy to install, has several degrees of protection and is practically devoid of additional services.
For wallet owners, there is a "cold storage" function. You can also back up your invoices at any time. Security is provided by a mnemonic phrase of a large number of words, which may be needed to recover funds in the event of theft or loss of the device. The disadvantage is that the Mycelium wallet was created exclusively for iOS and Android, and the most popular version is the version designed for Android.
In 2016, representatives of the Mycelium company announced that they will surprise users in the near future. Currently, among the advanced features of the wallet, one can note the ability to search for cryptocurrency sellers by rating. The service sorts the places of purchase of Bitcoins based on feedback from customers who have used their services.
An additional product of the developer is the Enthropy device, which connects to a phone or tablet via USB and allows generating "paper" keys.
Considering the Mycelium wallet among a wide range of offers, it is worth emphasizing its high level of security and convenient settings.
GreenAddress Wallet
GreenAddress service is young enough. Feature of the wallet is two multi-signature, as well as two-factor protection, which the user can change in the settings. The program offers a very high level of security, at least among other mobile wallet companies.
Taking into account the novelty of the product, GreenAddress invites new customers to use the trial version of the program, which is provided free of charge.
When making transactions on the GreenAddress Bitcoin wallet, keys are not transferred to a third party. At the same time, they are not stored anywhere, they are created when a mnemonic phrase is entered and are not sent to the companys server. Each payment can be made with additional encryption, which, if necessary, is set by the owner of the wallet.
The GreenAddress application can be operated through a regular PC browser as well as all operating systems for mobile devices. In addition, it is possible to install programs for gadgets.
Separately, we should talk about ensuring the security of transactions and the safety of savings. In general, the system offers the highest level of data protection and outperforms competitors at this point. To transfer funds from the GreenAddress Bitcoin wallet, you must receive a mandatory confirmation from the service in the form of a signature. Since in the event of a system shutdown, the client completely loses the right to use their savings, GreenAddress has implemented nLockTime technology. According to the terms of nLockTime, after a certain time has elapsed, the owner of the wallet can use Bitcoins without signing the service. Therefore, even if the online resource stops working, the user can be calm about his savings.
To improve security, the system logs in in two modes. So, to view transactions, the "observer" mode is provided, and full access to the GreenAddress Bitcoin wallet requires a code scan.
All mobile wallets presented in the review meet the requirements of an ordinary Internet user. At the same time, they offer different functionalities and levels of data protection. But in our time, given the interest of fraudsters in cryptocurrency, first of all, you need to focus on security and it should be remembered that the protection of crypto savings also depends on the observance of basic security rules by the owners of virtual wallets.