Which Wallet Do You Prefer? A Key-based Wallet Or A Smart Contract Wallet? Why?

In the blockchain era, where bank accounts are 2G networks, cryptocurrency wallets are considered 5G networks. Bank transactions require a lot of human time and energy since they deal with physical currencies. However, crypto wallets store digital currencies and transfer them instantly when the users request them.

Because of the various benefits that blockchain technology offers, businesses are racing toward cryptocurrency wallet development services to develop and deliver secure and high-performing crypto wallets.

First of all, let’s discuss the differences between a key-based wallet and a smart contract wallet.

What Is A Key-based Wallet And Why It's Useful?

You can choose to keep your cryptos in an exchange wallet or in a mobile wallet, where you have control over your keys.

You can control the account, send and receive money, and buy goods & services using public and private keys.

Public key functions are similar to your bank account number. You can share it with others to receive money or identify your wallet (only if allowed). Despite others knowing your public key, they cannot identify your name or other linked details since the wallets offer anonymity.

A debit card pin and a private key are comparable. Only you can access it until or unless you let someone else know your passcode. So you should remember not to share your private key with anyone.

What Is A Smart Contract Wallet And Why It's Useful?

A special application of blockchain known as smart contracts carry out transactions between parties when certain conditions are met. They increase performance, transaction speed, accuracy, trust, and transparency.

Smart contract development services can be used for financial services such as trading, credit lines, and investments. Businesses in the real estate, gaming, and healthcare sectors, and even entire corporate architecture use smart contracts.

A cryptocurrency wallet is referred to as a smart contract wallet if it communicates with a smart contract for buying and selling assets and exchanging cryptos. Interaction with dApps, trading, borrowing, and lending are a few examples of smart contract transactions. 

So, will you store your digital assets in a key-based wallet or a smart contract wallet?

If you are interested in digital currency and want to store it in the safest place, choose wisely, whether you want to be a key holder or a smart person.