What determines the Security of Ramzarz wallets? In this article, we are going to examine the Security of cryptocurrencies in a simple and understandable language for the general public and address the issues that if you operate in the cryptocurrency market, you must pay attention to them.
Before Instead of examining the Security of these wallets, it is better to know What a digital currency wallet is and how it works. First of all, we must say that, contrary to popular belief, Ramzarz wallets do not store any of the currencies purchased or transferred to them (you must have been surprised!). This is absolutely true, and you should know that all digital wallets such as Trust Walt, online exchanges, hardware wallets such as Ledger and Treasury all contain only your private and public keys and a device that blocks you from various networks such as Atrium, Cardano, Polkadat connects Bitcoin and..
With this introduction, it's best to go over a series of basic concepts.
What is the private and public key?
Because you do not have any personally identifiable information in the blockchain, having a private key indicates that you own the property in the blockchain (I hope I have been able to state the importance of the private key in this short sentence.) A text string is confidential and is a combination of letters and numbers that is created randomly as soon as you make a wallet. In fact, the private key is obtained from our chosen password for the wallet using encryption functions (hashing functions). A general way to gain control of an address in cryptocurrencies is to have a private key associated with it. The private key actually acts like a bank account password, and anyone with it can take full control of the account.
you should know that the private bitcoin key is used for non-refundable transactions. This irrevocability is guaranteed by the digital signatures associated with each transaction when you use private keys to send bitcoins. (This transaction will be non-refundable if you make a transaction and deposit money into someone else's account.) These digital signatures, although created by the same private keys, are unique to each transaction. This feature makes it impossible to copy and cheat them, and users can confidently use a private key over and over again.
Public and private key example
So far we know What a private key is. Now let's move on to the public key. The public key is a string of letters and text that, if I want to give you an example in the real world, is the same as your account number, which can be used to deposit digital currency to your blockchain account, and knowing that no one can access your account. Take over. So the public key or address is somehow (not quite) like your bank account number that you can send to anyone who is going to send you bitcoins, and to access your wallet assets, you need to know your private address or key. .
Knowing What the private and public keys are, we need to know What role digital wallets will play. As I said above, we can not connect directly to blockchains, so we need an interface. This is where digital wallets like the Walt Trust and Ledger come into play and act as an intermediary for us, connecting us to the blockchain. Remember that private keys are the only proof that we can prove that we own the property, so we have to store them in a very safe place. Because it is difficult for users to maintain and maintain a private key and we will have a different private key for each cipher, Seed was coined in 2013. Digital currency bags create recovery terms or Seed from your private key, and in 2014, with the next update of the Multicurrency property of the recovery term (so that we can access several cryptocurrencies with one recovery term in the wallet). wallets added.
Sample wallets Hardware (Treasury and Ledger)
is a retrieval set of several words that a user receives when building a wallet. One of the most important features of the digital currency recovery wallet is the ability to use it for multiple cryptocurrencies. As mentioned, the mechanism of digital currencies is different, and this makes the format of the private key in the network of some cryptocurrencies different from others. But not so with Seed. you can access your assets on different blockchain networks with one recovery phrase.
This feature greatly enhances the user experience when using digital wallets without the need for The user must use or maintain the private key separately for each of their passwords. Having a Seed can simultaneously access assets on different networks such as Polkadat, Bitcoin, Cardano, etc.
The list of the number of words used to generate a Seed Phrase is a definite number. The wallet recovery phrase (with any number of words, for example 12 or 24 words) is selected from 2048 words. The list of these words can be seen through this link. Abandon, for example, is one of those 2048 words used in retrieval terms, but the word Asparagus is not a part of these terms and will not appear in any retrieval terms. It should also be noted that there is a number next to each word, which is why the order of the words entered is important for recovering a digital currency wallet through Recovery Phrase. If one of the words is moved with another, it will not be possible to access the assets.
Sample recovery phrase generated in Trust Walt application
The difference between software and hardware wallets
So far we have had an overview of the main elements And What determines the Security of digital wallets? In this regard, I remember that at an event, one of my companions asked me a good question about this subject:
I use a multi-signature bag, but for many novices who enter the world of cryptography, I recommend using ledger, treasury or hot wallets such as trust wallet because they have a very simple user interface. But the question is, how can they trust these wallets to make the word recovery?
This is a really good question that always comes to the minds of users.
The fact is that No matter What device you are running from, you have to trust the software and hardware to some extent. In fact, the only way you can trust any software or hardware maker is to do all the work with paper and pen, which is certainly not possible!
But well, suppose you trust the procedure We went ahead, now how can we minimize the level of trust in the third person? This question is a bit deceptive. Depending on how you respond, people may try a treatment that is even worse than the disease! What happens here is that people may say I do not trust ledgers and treasures or other wallets to make retrieval words, and instead download software like Tails and follow the Glacier protocols on a laptop that has been around for 3 years. I will install it before it is not connected to the net and I will print the recovery statements with a printer that is not connected to the network.
In response to this, I must say that all you have done is trust the software, hardware or system It is a device designed for general use, not specifically for storing passwords. It is even more difficult to check the original origin of these products, which are designed for general use, and this increases the error rate.
Hardware wallets are still the safest mechanism for keeping passwords offline. Even if you can't afford a hardware wallet, and you have a small amount of crypto, mobile apps like Trust Wallet are good choices.
The reason we trust these wallets is that both software and hardware are carefully crafted Security experts are reviewed. Of course, this is still not a reason to trust them 100%. In fact, you trust Security experts who constantly monitor these devices for any vulnerabilities. If there are any Security holes in these products, it will be revealed immediately, which means that the developer of the software or hardware of the cryptocurrencies must say goodbye to the world of crypto forever.
Be aware that using online wallets also greatly increases the likelihood of fraud. If you are using a system that has a great deal of knowledge about security, then the chances of losing money due to a mistake are very high.
Conclusion: What kind of wallet should we use?
With all this talk, now is the time to conclude. If you have a lot of passwords, you need to create the recovery words offline yourself and save them in the hardware wallets. (I will publish the tutorial on these in a separate article soon.)
Example of a device for storing offline (cold) recovery methods
But if you have a small amount of passwords, the best option are the software wallets you have on your mobile. Of course, if you use software wallets, you should save the recovery words offline somewhere, and keep in mind that if these recovery statements reach someone, it is tantamount to losing your property.
Overall, Security issues in the blockchain take a lot of time to learn. However, in this series of articles we will try to explain the basic issues in this area in simple language.
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