A Defi wallet is a secure, blockchain-based platform that supports the use of decentralized applications (Dapps) on the Ethereum blockchain. It is an important piece of technology that allows users to buy, sell and trade Dapps using tokens built on top of the Ethereum network.
A Defi wallet enables users to purchase Dapps with their cryptocurrency assets, which are stored in a secure, decentralized location. These wallets also allow users to securely store their private keys and access them at any time.
The estimated reach of these digital wallets in terms of worth could go up to 20,000 million dollars by the end of this decade, hence a lot of businesses and banks are thinking to move towards adopting and investing their money in a secure system like Defi Wallet.
Steps to Develop a Defi Wallet With Prime Security:
1. Defi Wallet Multi-Sig support:
Multi-sig support means multiple signatures support. One way to protect and create a secure Defi Wallet is to make sure that your smart contract wallet’s is locked by multiple signatures.
One of the most appealing features of multi-signature addresses is that they allow multiple people to sign a document simultaneously. Users who own and sign for a joint wallet are referred to as “copayers” in the context of multi-signature wallets.
So, for example; if a hacker gains access to one key of your wallet, he/she will not have access to the entire asset pool until he has access to all the signatures used to encrypt the wallet.
2. Two-factor Authentication:
Two Factor Authentication is known as the 2FA method used to secure the applications and Defi Wallet. This system eliminates the risk associated with thirst parties present in money transactions which can be a cause of several fraud or money stealing. By implementing this technique, you potentially secure your Defi wallet from threats.
This method adds an extra layer of reliability for users by securing the wallet for legitimate users only. It works by creating an OTP known as a one-time password. This password is unique and temporarily valid for a short period of time. All the net banking apps use this system to protect your account from hacking.
3. Biometric Methods:
Biometric security is the most secure form of security that you can use in your Defi wallet. It is an authentication method where the user is required to scan his fingerprints or face to make transactions. This technology has been around for a long time and its popularity has increased over the years.
The idea behind biometrics is that it allows you to verify the identity of the user without any physical contact between them. This makes it a very secure method of authentication, especially if you are dealing with large amounts of money. There are many biometric devices available on the market today, but they tend to be expensive and difficult to use.
4. Optional Sessional Logout:
If you’re a Defi wallet user, you’ve likely come across the idea of a sessional logout. The idea of a sessional logout is to create a temporary logout that allows users to temporarily stop using their wallets and still be able to access their wallets at any time in the future.
This is useful for users who may want to access their wallets during different parts of the day. For example, if you have a business trip coming up and need to access your funds during this time, you could use this feature so that you don’t have to worry about logging in every time you need access.
Optional Sessional logout is a way by which when a user takes zero action on the wallet for an interval (usually pre-defined in the smart contract). The shorter the pre-defined interval is set, the less time an attacker needs to use the valid session ID. This method improves the security of the user’s Defi wallet.
Crypto Defi wallets have seen their hype in the past few years and they are grown exponentially. Considering that in mind, businesses should plan on adopting a secured Defi wallet. It is a software application that runs on a computer or mobile device and allows users to access and send a cryptocurrency such as bitcoin.
Defi wallets are designed to protect the user’s assets from hackers, malware, and viruses. They also allow users to make sure that they are only transacting with trusted parties and institutions.