Over the last year or so, Blockchain technology has invaded the tech space with promises of heightened efficiency and a new way of looking at everything from contracts to currencies. While much of this dialogue has been about cryptocurrencies, lesser known Blockchain applications have equally promising ideas worth exploring.

Doing our part to help understand the latest trends in tech, today we are going to look at the question of what a Blockchain wallet is and what it means for the Blockchain movement heading forward. Our hope is that by the end of this article you will have a better understanding of the Blockchain wallet and it’s uses outside of the crypto revolution.

Without further ado, let’s take a look at the what and how of Blockchain wallets.

What is a Blockchain wallet?

A Blockchain wallet, often referred to as a cryptocurrency wallet, is a software program that stores private and public keys linked to various Blockchain applications, including cryptocurrencies and digital currencies. There are currently multiple different options, both in regards to type of wallets and where they can be accessed, but before we get to that, let’s look at how these platforms work.

Unlike a typical wallet, Blockchain wallets don’t store anything on the actual phone or computer the user is operating on. Instead, users are given a unique decryption key that allows them access to an offsite backup where their information is kept. Often, the platform itself doesn’t even have access to this backup, making it one of the most secure ways to keep your information safe.

How does it work?

Since there are no actual coins being transferred with each transaction, Blockchain wallets work by simply keeping a ledger of who has ownership of the digital currency you are trading. In order to trade with others, your private key will need to match up with the public address that the currency is assigned to. Once the Blockchain sees that these keys match up, the ledger acknowledges the trade and the ownership is transferred.

While this is exciting for cryptocurrency enthusiasts, there are other Blockchain developments that have shown how Blockchain wallets can be used for paying bills, forming smart contracts, and more! Let’s look at a few features of popular Blockchain wallets to see what else can be done with this new trend in tech.

Features

As we mentioned earlier, there are a few basic features like storing cryptocurrencies that Blockchain wallets share. However, there are a few others that have yet to be used to their full potential that we want to showcase, including:

Tax reporting: Imagine how simple the tax process could be if all of your transactions from the year are kept in one secure location? Adding a trustworthy tax reporting feature should be a priority for existing Blockchain wallets.

Integration with financial software: Many cryptocurrencies suffer from lack of integration with existing financial software. We would like to see more of these collaborations and integrations in future Blockchain developments.

Automatic bill payments: Having a secure, automated way to pay bills would be a life-changing feature for many Blockchain users, especially if they could integrate with billing companies without the need for crypto.

You may be able to tell that there is still much to be desired when it comes to Blockchain wallets. However, by understanding this trend and where it is (hopefully) headed, we can create better future products. With this in mind, let’s take a look at the types of wallets already available to consumers.

Types of wallets

Currently, there are five different types of Blockchain wallets available, including desktop, mobile, online, hardware, and paper. While each of these is unique, they essential all simply house the unique key associated with the user’s personal Blockchain for routing and trading currencies. As more features are announced, it will be interesting to see if paper alternatives, for instance, outlast mobile applications and desktop platforms.

Regardless of the type of Blockchain wallet that you decide to use, there are a few things you would do well to remember in order to keep your secure information under wraps. For instance, experts recommend updating your software regularly, keeping your keys protected, and using a different browser when accessing the wallet online. If you are interested in further tips and wallet types, check out this article here.

Future of Blockchain wallets

As we have mentioned, we already have a few ideas for what we would like to see as Blockchain wallets become more common. That being said, it is clear that these platforms have come a long way already in regards to features and flexibility. Our hope is that the trajectory of wallets like these continues in the right direction that serves the largest amount of people with the best service.

One example of this is already being done is the consolidating of assets in Austin, TX for people without homes or low on resources. If we can use Blockchain wallets to serve the least among us instead of simply making the rich richer, we will be headed toward a better future. I, for one, would rather see this than another Elon Musk stunt.

Beyond crypto

Part of creating this better future, we believe, involves looking at the capabilities of Blockchain wallets and other applications outside of and beyond cryptocurrencies. While they have been raised the awareness of the uses of Blockchain, limiting ourselves to simply creating digital currencies could have disastrous outcomes.

Instead, we hope that Blockchain technologies will emerge that serve a greater good and help create a better, more efficient society. You don’t have to look far to find people in the world of Blockchain with revolutionary ideas, which is why we believe this is far bigger than crypto. For developers hoping to change the world, this where you should start.

Final thoughts

While this article might have been somewhat soapbox-y, we hope that it is has helped you better understand the world of Blockchain, Blockchain wallets, and what the future holds for these technologies. In order to create a better, more efficient world, we must have these discussions before the technology is built rather than after.

In the end, it is clear that both cryptocurrency and Blockchain wallets are going to become more prominently used in the coming years. We hope that you will remember these ideas and that the best way to predict the future is to build it, so make sure you are building a future you will be proud of. With that being said, get after it!