Committed Cold Wallets 👝

Crypto Wallets like Metamask, Phantom, etc helps you store your cryptocurrency safely but there is another type of wallet know as cold wallets. Lets dig deep into the concept of Cold Wallets 🚀

What is a Cold Wallet?

A cold wallet is used offline for storing bitcoins or other cryptocurrencies. With a cold wallet, also originally known as cold storage, the digital wallet is stored on a platform not connected to the internet, thereby protecting the wallet from unauthorised access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible to.

How does cold storage work?

Cold storage resolves this issue by signing the transaction with the private keys in an offline environment. A cold storage method shouldn't have the ability to communicate with any other electronic device unless it is physically plugged into that device when you're accessing your keys.

Any transaction initiated online is temporarily transferred to an offline wallet kept on a device such as a USB drive, a compact disk (CD), hard drive, paper, or offline computer, where it is then digitally signed before it is transmitted to the online network.

That's it for the day, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻