Demystifying Cardano Light Wallets: How They Work

A majority of individuals who opt for self-custody of their assets utilize light wallets. This is also the case for those who employ hardware wallets like Trezor and Ledger. These wallets establish a connection with a full node managed by a third party. Users not only select light wallets but also a third party they deem trustworthy. In this article, we delve into the workings of these popular wallets.

Setting Up Light Wallets

Light wallets can be installed as an application on your computer. However, a more prevalent method is to incorporate an extension to your browser. Cardano wallets such as Yoroi, Lace, Nami, Eternl, Flint, among others, can be initiated as a browser extension. This is arguably the quickest and most secure way to acquire a wallet.

It’s crucial to always verify that your wallet is being sourced from a secure provider. There are instances where fraudsters have successfully infiltrated the web store with a counterfeit wallet bearing the same name.

Some light wallets operate as a web service. You are required to input the URL of the service and log in. If you opt for this type of wallet, it’s advisable to create a bookmark in your browser to circumvent manual URL entry. Fraudulent wallets are often created on URLs that closely resemble the original.