Cryptocurrency Custody and Wallet Software
As you probably know, cryptocurrencies don't have any physical form, unlike government-issued paper bills and coins that you keep inside your wallet or purse.
Since they are digital currencies, they exist and operate through IT technology and stored in digital form, called cryptocurrency wallets.
A cryptocurrency wallet is a software application to facilitate storage, receiving, and sending digital assets that the wallet supports. It works very much like a bank account where you keep track of your funds in different currencies.
There are different variations of cryptocurrency wallets, ranging from enterprise-grade vault storage to end-user wallet apps.
Openware can help you define and deploy the correct cryptocurrency wallet software to fit your business objectives and exposure.
What is Crypto Custody?
Cryptocurrency custody solutions are storage and security vault systems used to hold large quantities of digital currencies or tokens. Crypto Custody solutions are one of the latest innovations on the FinTech market and are the herald of institutional capital entry into the Blockchain industry.
The utility of cryptocurrency custody solutions lies in the safeguarding of cryptocurrency assets. Private keys used to conduct transactions or access crypto holdings are a complex combination of alphanumerics. They are challenging to remember and can be stolen or hacked. Online wallets are a potential solution, but they have also proven susceptible to hacks.
How safe is the OpenWallet crypto custody software?
OpenWallet cryptocurrency custody software facilitates the storage, transaction, and security services for cryptocurrencies. OpenWallet is an excellent solution for institutional holders, such as hedge funds and cryptocurrency exchanges, who hold large amounts of Bitcoin or other cryptocurrencies.
The solution incorporates a hybrid multi-layer hot, warm, and cold storage system, unlike any other.
OpenWallet aims to overcome the expected benefits and drawbacks of standard dual-layered storage procedure.
For example, hot vaults are connected to the Internet and, as a result, offer more comfortable liquidity. But hot storage options may be prone to hacks due to online exposure.
Cold storage solutions provide greater security compared to hot ones. The majority of funds are stored offline and can be accessed only using a physical storage device and a private key. However, it may be challenging to generate liquidity from cold crypto vaults on short notice because of their offline nature.
With the introduction of OpenWallet multi-layered vaults, your platform dynamically exposes only the storage layer required for the current transaction batch.
OpenWallet dynamic vault storage is an inventive combination of both classic types of cryptocurrency custody solutions. Every storage layer has its checkpoint, security, and locking mechanism.
What about the crypto wallet applications?
While Crypto Custody is the solution to keep institution funds safe and sound, the crypto wallets are apps for institution customers to access the funds.
Web Wallets. A web wallet is a cryptocurrency wallet that only exists online. The user can access it through a web browser or Internet-connected app. The private key for the storage is either held by a custodian or encrypted behind a user's password.
Mobile Wallets. Mobile wallet apps are some of the most common types of cryptocurrency wallets out there today. You can find them for both iOS and Android, and there are some great options to choose from (we love Exodus). Mobile wallets are very similar to web wallets except for one crucial difference - the private key is only stored on the user's mobile device.
Desktop Wallets. Desktop Wallets function almost identically to mobile wallets. The private keys are stored locally on the computer. The user can access the wallet, whether he has an Internet connection or not. The big difference between mobile wallets and desktop wallets is that generally speaking, desktop wallets tend to be more advanced (we love Electrum). They tend to come with more technically complicated features that can increase privacy or allow for more flexibility when signing transactions.
Let's keep your digital assets safe and sound.
OpenWallet is an innovative bank-grade custody storage solution to ensure your platform's funds are safe so you can sleep at night.
We also provide the development of custom crypto wallet applications and ensure support of existing popular wallet applications.
Talk to technical sales for more details on crypto custody solutions, dynamic vault architecture, and a free cryptocurrency custody software demo.
You can also have a more detailed read through Openware Blockchain development SDK resources on platform components and modules.