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Wallet & Private Key
First, let’s see what you would have to know about and abide by the wallet.
Wallet
We would need a “key” that interacts with blockchain to transfer crypto assets, and this key is made and managed by wallets. In other words, crypto assets themselves are not in the wallet like how money is in our pocket.
“Then, what needs to be secured?”
If you make the wallet, you will get both Public Key and Private Key like the image below.
The Public key is similar to the account number of banking, and private key is similar to the password of the account.
Then, what should be complied to facilitate the safe and secure transfer of cryptocurrency?
Yes, the Private key!
Most of the crypto hackers aim to steal this private key.
Although it is true that crypto asset has a strong level of security based on complicated blockchain that is hard to counterfeit, it would be difficult to protect the assets if private key is hacked, just like the money can be easily taken from the robust storage bank when the password is revealed.
Who takes care of Burrito Wallet’s Private Key?
Wallet type is divided based on ‘who takes the responsibility and manage’ the private key.
- Non-custodial Wallet (personal wallet): user takes the full responsiblities with his/her private key.
- Custodial Wallet (central wallet): private keys are managed by the central institution like CEX.
“what kind of wallet is Burrito Wallet?”
Burrito Wallet is a non-custodial wallet, where user takes care of the private key themselves.
Private keys are free of risks that can take place within CEX and central institution, but requires more cautiousness as the responsibility is all yours.
