Why are wallets so important and what’s the big deal about PLAAK’s?
Why are wallets so important?
With the cryptocurrency market climbing exponentially, many people are clamoring for the chance to get in on one of the biggest investment booms of this and possible the next generation’s lifetime. Keeping assets safe is usually of primary concern, especially when headlines are dominated by scary words such as millions of crypto-assets “stolen”, “hacked”, “scammed” and similar sentiments.
A digital wallet is the typical way that assets are stored safely. Digital wallets come with two different keys, sometimes called wallet addresses. The two keys are a “private” key and a “public” key. They both serve two very different and specific purposes, and it’s important not to mix the two up. Cryptocurrencies are sent and received using sophisticated codes and equations (hence “crypto” derived from the word cryptography). The public key is used as part of an encryption for assets to be sent to your wallet, like an address. The public key is given when the owner wishes to receive coins from someone. The private key is your unique pin number or password to access the wallet. Whoever has possession of the private key owns the assets contained within the wallet. It is important to note the significance of keeping the private key in your possession only. You wouldn’t give the pin to your bank account to a stranger or even an estranged family member. Treat your private key the same, DO NOT give your private key to anyone.
Due to the secure nature of these kinds of wallets the only way to access the wallet is with the private key, so if you lose it then you also lose access to the wallet. Some people keep private keys saved on a usb kept in a vault, others written on a piece of paper under their mattress or engraved on a dog tag around their neck, whatever keeps it safe and in their possession.
Two terms that are generally used when discussing wallets are “hot” and “cold” wallets. These actually refer to the way your private keys are kept safe. When you print out your private key onto paper, or write it down, it is considered “cold” storage because you are removing the key from any internet access and possible hacking. When you leave your private key on a computer connected to the Internet, or a file on a usb which you plug into a computer, this is considered “hot” storage because it is at risk of viruses, malware and hackers.
Cold storage is slightly different and involves the physical removal of your digital asset “codes” from a wallet attached to a computer to a device such as a usb, uniquely designed to hold these coin codes. Some only hold one type of coin, others are multi-coin and hold a select few. These are the best forms of storage currently available and are completely impenetrable to hacks since it is not attached to a computer or internet device, however you are unable to easily access the coins for use and these devices can be expensive to purchase.
Why PLAAK’s wallet?
PLAAK’s wallet is a balance between security and accessibility for use. There will be two main wallets, the PLAAK exchange wallet and the PLAAK user wallet. The exchange wallet will be an online hot private wallet which will be where all trading is done. The user wallet will be an offline cold decentralized private wallet, where the user deposits funds which can then be transferred to the exchange for wallet use. Neither require a separate download, and are linked through the one-login which will allow for seamless transactions.
The exciting feature is the user wallet which is completely decentralized and offline, which means you are in complete control of the private key at all times. This is different to many other exchanges who, unbeknownst to the user, often actually hold the private key and technically only give you public key access. When you hear about exchanges being hacked and users losing coins from their wallets, this is because the wallets are part of a centralized system and you, the “owner” do not actually hold the private key. PLAAK’s wallet gives sole control to the user. PLAAK’s wallet also has biometric security capability in addition to industry standard security. The wallet is also a multi-coin wallet and because it is attached to an ecosystem, the ease of use is far superior to the majority of other existing wallets. You can easily make purchases on the exchange or other apps straight from the wallet. Again you are given complete flexibility with how to use the coins from secure storage. The wallet is comforting for users, showing that there are still companies, although few and far between, who put the needs and wants of consumers first and foremost.
To learn more, head over to PLAAK’s website, join their Facebook community pageor Telegram group. There is also still time to participate in their ICO, which will run until 1 June 2018 when the launch of the exchange will occur, just head over to their websiteand follow the prompts.