Crypto wallets

Developing a crypto wallet

The rapid development of blockchain technologies and the growing popularity of digital assets make the development of crypto wallets one of the most relevant services in the fintech industry. Today, cryptocurrencies are actively used not only for investments but also for everyday transactions, which increases the demand for reliable, convenient, and secure solutions for their storage.

CryptonisLabs develops turnkey crypto wallets — from architecture and interface design to the integration of blockchain protocols and smart contracts. Our solutions support multi-currency, NFT, and DeFi services, ensuring a high level of security and stability.

Creating your own crypto wallet opens up new opportunities for your business: attracting users to the Web3 ecosystem, launching tokenized services, and building an innovative brand image. We develop products tailored to your project's goals — from mobile and web applications to corporate blockchain platforms.

What is a crypto wallet and how does it work?

Users often say they store cryptocurrency in wallets. But in reality, this is not the case. Digital assets are stored on the blockchain, and a wallet is simply a tool that gives a person access to a certain amount of coins within the decentralized network and ensures their secure storage.

A crypto wallet itself is a specialized program that allows a user to interact with the blockchain: create payments, send transfers, store funds, and more. Technically, such software can be integrated with software, exchanges, or hardware.

Regardless of the wallet type, it always contains two elements: private and public keys:

• Public – a unique user address, represented by a string of alphanumeric characters visible to any network participant. It is required for making payments to a specific wallet account.
• A private key is a secret key required to confirm transfers. It is used to conduct all transactions from the account, and whoever owns this key has full access to the funds in the wallet. It is essentially a series of random, automatically generated numbers.

To put it simply, a public key can be compared to a bank card number that you send to a counterparty to receive payment, while a private key can be compared to a PIN code and CVV code.

When a financial transaction is carried out, it is signed with a private key and then sent to the blockchain. Once verified by the blockchain, the transaction is completed.

Why Mobile App Developers Use Blockchain

Until recently, blockchain technology was considered exclusively in the context of cryptocurrency, but over time, its potential began to be used in other areas, particularly in the development of mobile applications.

Blockchain is a decentralized digital ledger in which data about every transaction is stored in an immutable chain. Based on data access, blockchains can be classified as:

• An open blockchain is a database in which any market participant can view transaction history, study data, and create a smart contract.
• A private blockchain restricts access to the information stored in the ledger, requiring all network participants to have the appropriate permissions. Transactions are accessible only to the parties involved.
• A public (inclusive) blockchain places no restrictions on the identity of transaction processors; users can create blocks themselves; an exclusive blockchain, on the contrary, allows only a specific list of entities with established identities to process transactions.

Why is this important? All the features of blockchain make the system transparent and enhance app security, as they eliminate the possibility of fraud—it's impossible to conduct unauthorized transactions on the network without the knowledge of the participants. Furthermore, it turns out that any peer-to-peer transactions in mobile apps are perfectly suited for this technology. Blockchain allows for maintaining records of any type of transaction, depending on the needs of the mobile app.

This technology will make it possible to automate many labor-intensive processes. Blockchain protocols, for example, can make digital transactions in business processes more accessible and faster through the use of new methods.

How blockchain can be used in mobile applications

First and foremost, blockchain implementation significantly improves the security of mobile payments. This will allow more users to trust mobile banking by using secure apps.

An example of such collaboration is the partnership between Telcoin and telecommunications companies. Using apps, people with mobile phones but no bank accounts can make secure payments.

Landmapp is also developing a service and mobile app that will register land ownership using blockchain technology. This will significantly simplify many routine tasks in the future.

Decentralized applications on the blockchain

Decentralized applications (dApps) are based on blockchain technology and operate on a decentralized computing system or peer-to-peer network. DApps create an innovative open-source software ecosystem that is both secure and resilient.

Smart contracts—computer algorithms designed to execute and manage self-executing contracts in a blockchain environment—play a key role in the operation of dApps. The algorithm executes specific actions when predetermined conditions are met. Smart contracts eliminate administrative costs, making them one of the most attractive features associated with this new technology.

DApps have found application in many areas, from digital asset exchanges to online gambling. You can read more about their development here.

Types of crypto wallets

To order a crypto wallet, you need to understand the different types. Generally, digital wallets can be divided into two types: custodial and non-custodial. Let's take a closer look at each.

Custodial wallet

These are wallets in which the user's private and public keys, as well as all transaction data, are stored by a third party. Many consider this type of wallet unsafe and vulnerable to hacking. However, they also provide the ability to restore access to funds if the user loses their password or secret phrase.

Custodial wallets can be divided into:

• Exchange - in which keys are created and stored by the exchange.
• Software – created by private developers who store all data on their own servers.

Non-custodial wallet

A type of wallet in which the keys belong directly to the owner and are not shared with third parties. Certainly, such wallets are more secure from a security standpoint. However, the user must also be careful with the keys, as if they are lost, it will be impossible to regain access to their funds.

Non-custodial wallets can be divided into:

• Software – these are applications that are downloaded to a personal computer.
• Web wallets are the most common and convenient wallets, allowing you to make transactions directly on websites. They are accessible directly in your browser and can be used anywhere, regardless of location. The main drawback of these wallets is the high risk of hacking.
• Mobile – applications that allow you to manage digital assets from your smartphone.

Which crypto wallet should I create?

In the crypto industry, there's one rule: everyone is responsible for their own money. For example, in the real world, you can put your money in a bank and rest assured it won't disappear. This doesn't work with digital currency.

When choosing a wallet from those already on the market, you'll have to balance convenience and security. The higher one parameter, the lower the other. And vice versa. Therefore, if you plan to store large sums, we recommend ordering a custom cryptocurrency wallet that will fully meet your needs.

Benefits of developing your own wallet

Using your own cryptocurrency management app opens up unlimited possibilities for users. During development, you can implement not only the wallet's core functionality but also additional features, including:

• multicurrency;
• buying and selling cryptocurrency using fiat money;
• connecting a merchant to accept payments;
• development of a reliable space for trading between users.

Importantly, by using their own crypto wallet, users don't have to pay extra fees. Therefore, the cost of developing such a solution will quickly pay for itself.

Where to order wallet development

When you order a crypto wallet from CryptonisLabs, you can count on the studio's 10 years of experience in blockchain development. We offer a full range of services for the development, implementation, and maintenance of reliable blockchain-based applications, and we also handle projects of varying complexity and scale.

We will create:

• A cryptocurrency asset management app that works on any platform, including iOS, Windows, Android, Linux, Mac OS, and various web browsers.
• Functionality tailored to your specific needs, without unnecessary options that distract or slow down the service.
• User-friendly interface, intuitively understandable.
• Protection from hacker attacks: local and global, which is achieved through reliable data encryption.

Our team uses cutting-edge technologies to ensure maximum application security, responsiveness, and speed.