Dissecting the idea of hardware wallets
In this article, we will discuss the idea behind hardware wallets, focusing on how they work and why they are essential for anyone handling crypto.
As the popularity of cryptocurrencies is on the rise, the need for secure storage solutions has become paramount. To many, hardware wallets are the most secure method of storing cryptocurrencies.
How did the idea behind hardware wallets evolve?
A hardware wallet is a physical device designed to securely store cryptocurrencies. High-level security is achieved thanks to the fact that private keys for accessing users’ crypto are stored offline, which makes them less vulnerable to hacking attempts than software wallets or online exchanges. That led to hardware wallets becoming increasingly popular among crypto enthusiasts.
Back in 2012–2014, a series of crypto hacks and thefts triggered the creation of the first hardware wallets, in which private keys are stored in a secure and isolated way.
The first consumer-oriented crypto hardware wallet, Trezor One, was introduced to the market by SatoshiLabs in 2014. That year saw a sharp rise in Bitcoin prices, prompting users to search for ways to store their assets securely. Soon, several more projects hit the market. While some focused mainly on one specific cryptocurrency, others’ focus was on functionality (SafePal, KeepKey). Some of the projects from that era failed (EliptiBox, Goochain Citadelle), while others became industry standards (Ledger).
In the following years, significant attention was paid to adding new security levels, as well as improving devices’ durability and dApp connectivity. Recently, the hardware wallet segment has been growing rapidly, and it is expected to continue to do so. According to a recent report by IMARC Group, the global hardware wallet market size has reached $320.5 million in 2022. Looking forward, IMARC Group expects the market to reach $1.3 billion by 2028, with a growth rate of 23.1% in 2023–2028.
Hardware wallets provide the highest level of security for interactions with blockchain networks, enabling users to manage digital assets with confidence. Additionally, hardware wallets are convenient and easy to use, making them accessible to anyone, regardless of their tech skills. In a broader sense, hardware wallets are about innovation, privacy, security, and, once again, financial freedom. They strive to empower individuals to take control of their financial future and participate in the decentralized economy: “You own your device; you own the keys.”
What is the 1inch Hardware Wallet’s mission?
The 1inch Hardware Wallet aims to deliver a product corresponding to users’ highest expectations. Developed primarily for the DeFi space, the device is simple, intuitive, and open-source, which makes it easy for anyone to use. The long-term mission is to provide the highest level of security and convenience for storing cryptocurrencies, with a focus on transparency, simplicity, honesty, performance, and constant improvements.
The project is open for the community to review and identify potential issues. Anyone can download documentation and source code, participate in the device’s creation, or become a contributor. At the same time, every step of the development process has been and will be shared until the official product launch. Due to legal considerations, that information is published step by step. The 1inch Hardware Wallet welcomes all kinds of feedback and encourages the community’s members to become the device’s co-creators (Check out our Telegram Channel). That way, users can truly own their devices.
Closing thoughts
Hardware wallets have become a crucial tool for anyone involved with crypto. They provide the highest level of security, which makes hardware wallets an ideal choice for anyone who primarily values the security of their assets. As the market for hardware wallets continues to grow, we expect to see innovative solutions that make storing crypto more accessible and secure.
