[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

1. Cryptocurrency Overview

 

Bitcoin's scripting language is relatively simple. Therefore, Bitcoin only functions as a 'money'. For example, Bitcoin's scripting language is the primitive language used by humans when primitive humans first appeared. This is called ‘Turing-incompleteness’ of Bitcoin.

 

Also, UTXO (Bitcoin Balance) has limitations in making applications other than the function of money, which is called 'Blockchain-blindness'.

 

 

In addition, the state that Bitcoin's UTXO can express is either used or not, so it cannot express shared use. This is called 'Lack of state'.

 

In summary, Bitcoin is an application that only serves as an 'electronic calculator' in a large network called the block chain.

 

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

 

 

2. So what about Ethereum?

 

Ethereum developer Vitalik decided to create a new blockchain network to use a more sophisticated language (Turing complete language) than Bitcoin's script to create a platform that can use various dApps (decentralized applications). This is the Ethereum platform.

In simple terms, if Bitcoin is an electronic calculator, the Ethereum platform is a single giant computer or a modern smartphone. art, government administration, insurance, etc.).

Whereas Bitcoin used Turing-incomplete 'scripts', Ethereum uses Turing-complete languages ​​'Solidity (JAVA script)' and 'Serpent (Python)'. Through this part, Smart Contract is enabled and distributed application is implemented.

 

 

 

3. What is GAS?

 

There are several altcoins implemented in the Ethereum ecosystem. More precisely, it is a dApp, and among them there is an application called GAS that is absolutely necessary.

 

The Ethereum platform has its own currency token called ether. If you purchase an application called gas (GAS) with this Ether, Ether can supply 'fuel' to provide computing power and storage space for Smart Contract. According to this command, compulsory and automatic contracts are executed under certain conditions.

 

 

 

 

4. Smart Contract란?

 

The execution of certain terms and conditions online. For example, if Steven is admitted to the intensive care unit, the condition is that 10 ETH will be transferred to Steven's son's wallet as hospital bills. Then, when Steven is hospitalized in the intensive care unit, a 'state transformation function' is created to satisfy certain conditions, and 10ETH is forcibly and automatically transferred to Steven's son.

When this is recorded on the blockchain, the initial condition cannot be changed and must be executed when the condition is satisfied.

 

conclusion:

Bitcoin is progressing to pursue only the function of money and its value as money. However, Ethereum is a 'platform' that creates various kinds of services and makes them operate in a decentralized manner.

 

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

 

5. Ethereum Wallet

 

The more people join the community, the greater the need to create a fully secure cryptocurrency wallet that allows users to securely store Ethereum coins and ERC-20 tokens. There are a surprisingly wide variety of Ethereum wallets out there today, but choosing the right wallet can be challenging because you have to consider many important factors, including security, ease of use, reliability, functionality, and durability.

 

1. Overview of Ethereum Wallet

An Ethereum wallet can be generally thought of as an application or software program that allows you to store your Ethereum-based cryptocurrencies in a secure location away from hackers. Buying and maintaining Ethereum on an exchange is risky as there is always the possibility that the exchange itself will be hacked or even shut down. As a result, your cryptocurrency may be stolen or lost. Therefore, the safest and most reliable way is to keep your cryptocurrency in your own wallet. An Ethereum wallet has two important keys (private and public) that are required to conduct transactions. A public key is usually linked to a wallet address where other users can send coins. You can provide your wallet address to anyone without fear of compromising the security of your wallet. In turn, your private key is your password to your wallet, meaning you cannot give it to anyone. You can unlock your wallet and have full control over your content. If your private key is compromised, anyone can steal your coins. The only solution to this problem is to create a new wallet with a new private key and move the coins into that wallet. Whenever you want to send ETH tokens to another user or exchange, you must authorize the transaction by entering the address of the receiving wallet and providing your own private key.

 

2. Ethereum address and account

When dealing with Ethereum wallets, it is important to know that Ethereum has two types of accounts: Externally Owned Accounts (EOA) and Contract Accounts.

 

3. Externally Owned Accounts

An externally owned account, or EOA for short, is the most common type of Ethereum account. I have an Ethereum address managed with a private key. Users can open as many EOAs as they want. You can also create and activate smart contracts using externally owned accounts.

 

4. Contract accounts

Every contract deployed within the Ethereum network has its own account with a unique Ethereum address. Unlike EOAs, contract accounts do not have a private key to control them. Instead, the code that defines the contract contains predefined triggers responsible for account management. Like EOA, contract accounts can receive and send Ether, and can also launch additional contract accounts (if pre-programmed). It is worth noting that once the contract is designed, it cannot be changed. This means that contract authors must be careful and consistent when writing conditions for each trigger.

 

5. Difference between Cold Wallet and Hot Wallet

Basically, Ethereum wallets can be divided into two main categories: hot wallets and cold wallets. HotWallet allows you to store your private key online so that you can access it from virtually anywhere in the world while connected to the internet. However, it is not the safest option as there is a risk of being hacked by scammers trying to steal your funds. Cold wallets, on the other hand, are always non-custodial and allow you to store your keys offline. It is much more reliable and less vulnerable to hacker attacks because it only connects to the internet when transactions are needed. Installing two-factor authentication (2FA) two-factor authentication as a security measure is the best way to increase security in the short term, which is especially important for wallet storage. This way, you will only be granted access to your wallet after going through a two-step verification process in which you enter your password and provide a numeric code sent to your mobile device. 2FA greatly reduces the risk of account theft as hackers need access to both your password and your real phone. The type of Ethereum wallet you choose also determines the level of security of your funds, and it is up to you to choose the right balance of convenience and security. Let's take a closer look at the available options.

 

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

 

6. Paper wallet

Ethereum paper wallets are the most secure way to store Ether, they are basically papers with code written on them. The biggest advantage is that you don't need to connect to the Internet or store it on your computer, keeping your funds safe from hacker attacks and physical theft. To access digital assets, you must either manually enter the key or scan the QR code that comes with a printed piece of paper with your private and public keys. In general, paper wallets have the following advantages: It is very safe when used properly, making it suitable for storing large amounts of Ether. The downside is that when you access funds from your digital wallet, you can use that record in your transaction history. So, to maintain unbreakable security, you need to create a new paper wallet. Usually, these wallets act as personal safes rather than for everyday transactions.

 

7. Online wallet

The Ethereum online wallet is the most secure type of wallet. With centralized services like cryptocurrency exchanges, some people may be tempted by the ease of use, but they risk losing all their cryptocurrencies. When using online wallets, beware of phishing websites. Phishing sites look like normal legitimate websites, but can steal personal information, including usernames and passwords. After that, cybercriminals can access your account and steal your cryptocurrency.

 

8. Software Wallet

Software wallets allow users to strike a sort of balance between security and convenience. This type of wallet is much more convenient for conducting repetitive transactions than paper wallets. But the biggest benefit is that you are the only one in control of your private key. So the risk of being hacked is definitely reduced. Still, it's not as secure as a paper wallet or hardware wallet. Different types of software wallets are available. Choose the code that works for you, and the code should be open source. This allows the cryptocurrency community to test wallets for bugs and ensure that their software code is hacker-free. Not only that, the software wallet has a convenient interface, so there is no difficulty in sending or receiving Ether.

 

9. Mobile Wallet

Some cryptocurrency holders prefer to keep their Ether in a mobile wallet where they can manage their cryptocurrency easily and efficiently. Mobile wallets are also referred to as “lightweight” clients because they do not need to download the entire blockchain to move around. However, this kind of “lightness” is what causes hacks to happen more often than other wallets. Also, if someone knows the phone's PIN, they can extract the private key of the Ethereum wallet. That's why we recommend that you only store a small amount of Ether in your mobile wallet for daily use.

 

10. Hardware Wallet

One of the most reliable ways to store cryptocurrencies, a hardware wallet is similar to a USB drive. This allows you to store your private key on a physical medium. To access, simply connect the pen drive to a desktop computer or laptop and enter a 4-digit PIN code. The biggest advantage is that hardware wallets are very secure. For example, if someone tries to gain access to your assets, they will also need physical access to your device, so you can be secure in the end.

 

11. Browser wallet

Browser wallets provide a relatively secure and efficient way to process and sign blockchain transactions directly from a regular browser such as Google Chrome. Not only that, the browser wallet is a neat tool for interacting with some of the Web3 applications powered by Ethereum. Browser wallets are undoubtedly convenient for using Ethereum-based applications, but are not recommended for long-term storage of user holdings.

 

12. Desktop Wallet

A desktop wallet can work on your computer or laptop. You can download the full client to the Ethereum blockchain or simply utilize a light client. The latter is definitely easier, but the former offers better security. Since a complete client can fully validate the transaction itself, it can normally operate without miners or nodes sending transaction information. Desktop wallets certainly have many advantages. Nevertheless, they still rely on the internet, which can have adverse consequences, so you should always take precautions to make sure your computer is not hacked or infected with malware.

 

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

 

 

6. Ethereum Online Wallet Recommendation

 

A secure Ethereum wallet is a must for anyone who owns Ether. However, if you are just starting out exploring the crypto space and Ethereum, choosing the right wallet can be a bit confusing, especially given the sheer number available. But rather than worrying too much, we've put together the following list of 10 popular Ethereum wallets, so it's probably not too late to pick a wallet after thinking through the details and other technical aspects.

 

1. MyEtherWallet(MEW)

Introduced in 2015, MyEtherWallet is the most popular online wallet for storing ETH and ERC-20 tokens. This wallet is free and open source, and you don't need to set up anything on your laptop or PC. There is also a mobile MEW app available for both Android and iOS. You can download this app and access your wallet literally from anywhere. MyEtherWallet is also compatible with hardware wallets such as the Ledger Nano S and Trezor, so you can run MEW on your computer as well.

Other notable features of the wallet include smart contract support, the ability to exchange ETH for BTC, and the ability to store Ethereum private keys on your computer, which guarantees the highest security of any similar type of wallet.

 

2. Vault

Trezor is a hardware wallet compatible with Windows, macOS and Linux. Used to store Ether and ERC-20 tokens. This flash drive sized device allows you to keep your private key offline. Although initially used to store only bitcoins, Trezor is now known as one of the most popular Ethereum wallets. In addition to Ether, it also supports Bitcoin, Bitcoin Cash, Litecoin, Dash, Ethereum Classic, Dorgecoin and other cryptocurrencies.

Trezor has top-notch security features, including two-factor authentication, Secure Shell Protocol (SSH), and encryption via GNU Privacy Guard (GPG). It stores Ether offline with the help of an electronic chip that can be activated by logging in with a user password.

 

3. Exodus

Exodus is a multi-currency desktop Ethereum wallet that can also be used on mobile devices that support both iOS and Android. Its sophisticated UI and built-in exchange called ShapeShift allow wallet users to exchange one currency for another efficiently. We usually store the user's private key on the PC and do not transmit it over the network.

The wallet also supports a variety of cryptocurrencies such as Bitcoin, Augur, Dash, Factom, Golem, and Litecoin, making Exodus a great option for those who have different types of coins in their portfolio.

 

4. MetaMask

MetaMask is a wallet in the form of a cross-browser extension for Google Chrome, Firefox, Opera and Brave that grants access to the Ethereum network and DApps. This type of Ethereum wallet is secure, convenient, easy to use, and allows you to encrypt your passwords and store them on your computer. MetaMask also provides an opportunity to interact with decentralized applications located on the Ethereum blockchain, such as Maker, Uniswap, Compound, etc., without the mandatory installation of full nodes. It stores the user's private key in the browser itself in encrypted form, but does not transmit it to the browser's server. We also regularly update the database of phishing websites and notify you immediately if you have interacted with sites in this database.

 

[Ethereum] What is Ethereum, features of Ethereum, and Ethereum wallet summary

 

5. Ledger Nano S

The Ledger Nano S is widely regarded as a top-notch hardware wallet. It supports other cryptocurrencies including Ethereum, various types of ERC-20 tokens, and even Bitcoin, Litecoin, and more. The Ledger Nano S comes with a small OLED screen to simplify transaction monitoring. It also includes two-factor authentication and PIN code and recovery seed capabilities. Equally important, the Nano S can be integrated with MyEtherWallet to send, receive and hold tokens. It runs on operating systems such as Windows, macOS, and Linux.

 

6. Jaxx

Jaxx is a multi-chain wallet that supports various cryptocurrencies such as Ethereum, Bitcoin, Dash, DAO, REP, and more. It supports Windows, macOS and Linux, and there is an extension for the Chrome browser, but it is especially popular with iOS and Android users. It has many useful features such as ease of use and intuitive UI. Private keys are usually generated on the local device and are not sent to any server.

 

7. Coinbase

Introduced in 2012, Coinbase is an Ethereum wallet with approximately 100,000 users signing up per day. It provides an inexpensive and efficient way to trade Ethereum and other cryptocurrencies in your country. To use this wallet, sign up on the Coinbase website by entering your email address and other personal data. After that, you will receive a public address that will be used to send cryptocurrency coins. However, your private key is stored on Coinbase hosting servers and cannot be managed by you.

 

8. Mist

Mist is the official Ethereum desktop wallet great for storing ETH and several types of ERC-20 tokens. The wallet is cross-platform, available for Mac OS, Linux and Windows. Easy to install and user-friendly, you don't need to be a crypto expert. To protect your Mist wallet, you can create a password that can never be changed. You won't be asked to provide any personal information when downloading, and you can be 100% confident that only you are in control of the private key stored on the device you set up Mist for.

 

9. Argent

Argent was created in 2017. A non-custodial mobile wallet for Ethereum and ERC-20 tokens focused on the DeFi project. If there is a problem with your account, you can easily recover it using your email, mobile number or Argent Guardian Service.

The Argent wallet allows you to store, buy and exchange coins directly in the app. Cryptocurrency can be purchased with Apple Pay, credit card or bank transfer. Argent is a partner on the Compound platform, so you can get interest in Ethereum when using the app.

 

10. Coinomi

The Coinomi wallet not only lets you store cryptocurrencies, but also allows you to exchange and buy around a thousand different coins directly from the app. It is a multi-chain wallet available for both mobile and desktop versions. Coinomi offers a high level of security and a convenient user interface. This is non-custodial. This means that your private key is encrypted on your device and only you have control over your funds and their safety. The wallet is very easy to install and use even for beginners.