In this blog, we shall discuss a very innovative financial application that is not going to go out of the market any time soon! We shall discuss all the peripherals of Bitcoin wallets and all about bitcoin wallet development. Bitcoin was introduced to the world in 2009 by some anonymous person called Satoshi Nakamoto and it created quite a hurricane. The price of this crypto token managed to increase multiple folds in the past years that rendered the investors as multi-millionaires. A few of you would have already invested in Bitcoins and know about the gigantic returns I am taking. Today, there is a possibility to harness the popularity of Bitcoins and develop a payment application where the Bitcoin will be the payment option for all online payments. Here, we shall, of course, discuss how to develop a mobile Bitcoin Wallet. It is basically a system to transfer money using Bitcoin mobile wallet. Get to know more about Cryptocurrency wallet- The Perfect Wallet for your Altcoin Before we get on with bitcoin wallet development guide, let us see why the bitcoin wallet is advantageous for money transfer.
#1. It is the simplest form of exchange
The digital nature of Bitcoin renders it as a perfect virtual currency for international money transactions. It is extremely fast and the transaction cost is very low. Other payment options are much slower and more expensive. Cryptocurrency is not associated with no foreign exchange rates or has no other hassles. One can purchase Bitcoin from any online cryptocurrency exchange platform for liquid cash from any local seller. You can also try to mine bitcoins on your own, This can be quite a tedious task and will require you to set up complex equipment for mining and have it endlessly run algorithms. Though it might seem like an easy task, we are dealing with highly complex algorithms. It is not conceivable for a standard home PC to effectively mine Bitcoin. People who are into hardcore mining has dedicated mining rigs with chips that are specially optimized to solve the cryptocurrency hashes. Despite the mode of obtaining bitcoins, it is transferred to a digital wallet where it is stored locally. There are various ways to withdraw money from a bitcoin wallet app. You can go to a local Bitcoin teller and can exchange Bitcoins for liquid money by scanning a user’s QR code in the app.You can also sell the cryptocurrency through your bank account. However, this option is limited to certain countries.
Bitcoin is a peer-to-peer system and this bitcoin wallet application acts as a node in a public network called a Blockchain. The Blockchain contains all information about all transactions that have ever made. The full transaction log is open and this can be traced back at any time. With this decentralized mechanism, a transaction can neither be blocked or declined and the funds are locked. Here are the top 5 Blockchain Applications for small business. However, every coin has two sides. The lack of regulation from the government authorities is one of the main reasons why Bitcoin is so popular. This also does imply that it can prove to be a potential virtual currency for criminals. Since the wallets are digital, they don’t have to be registered with any government or financial authority. Also, an important aspect for the cryptocurrency is that it can be easily exchanged for fiat money. A single Bitcoin can be sold online or offline for around $290, as we speak.
#3. Safe and secure
The bitcoin wallet is developed in such a manner that it is a safe place for the storage, exchange, and usage of cryptocurrency. Every transaction that takes place in the wallet is signed with a digital signature before it is stored in the Blockchain. After getting recorded in the blockchain, a transaction is processed and propagated through all blockchain nodes. Post this, it will become committed and the money will be transferred to another wallet. A Bitcoin wallet allows you to send and receive money and see your transaction history and current balance in the wallet. Also, the wallet runs a few service tasks like synchronizing the blockchain. These tasks are important for validating transactions in the blockchain network. Desktop wallets usually store an entire transaction log of the whole network, This log is an enormous amount of data and is around 20Gb or even more. Mobile bitcoin wallets and web bitcoin wallets generally store only the most recent part of the transaction log under the assumption that older transactions were correct. This is not a concern since the network will detect it sooner or later even if a mobile wallet validates an incorrect transaction. All the data regarding the bitcoin wallet is stored in a “wallet file” on the user’s devices. If you miss the file, you lose the money.
Bitcoin transactions provide complete anonymity to the users. All you need to know is the You Bitcoin wallet address of the recipient to do a transaction in the wallet app. The wallet address is generated by the wallet and each wallet owner has his own wallet address. The user can generate as many addresses as he wants for his wallet file. With this wallet address, you can check on how much money was to and from the wallet but you can’t say which wallet is associated with the address and who is the recipient of the money. Now, that is the kind of anonymity we are talking about.
#5. It is great for gamblers in the stock market
The value of Bitcoin fluctuates greatly and is hugely dependent on the supply-demand gap.this is very much similar to fiat currency and stock markets. There are a lot of Cryptocurrency trading platforms or exchanges where anyone can buy and sell the crypto tokens. In such platforms, the user prefers currency stability over the extreme fluctuations in the value. This stability can be attained by hedging. This feature is offered as an additional feature of a mobile Bitcoin wallet. Hedging reduces the substantial losses or gains suffered by a trader or a trading organization and offsets potential price volatility. Smart contracts are used for hedging and there are multiple platforms such as Veritaseum, Hedgy etc that provide hedging smart contracts. These platforms work on top of the blockchain and give a provision for the users to “lock” their funds. For example, if a user adds $100 to his account, he will have that money in his account and this will not be affected by the current exchange rate. Have a quick glance at how smart contract development is done. Now, let us see how hedging smart contracts will lock funds. The platform-like Veritaserum will issue an agreement between the users. one of the users places a bet that the price of the bitcoin will increase and the other one vouches that it will fall. When the period expires, the user who made the right prediction will compensate for the user who lost. Now, the money that users added to their account remains the same.
How can you get one – Bitcoin wallet development Guide
A bitcoin wallet is very easy to implement. If you are keen on making a Bitcoin wallet, there are a few libraries gives you standard functionality for synchronizing with the blockchain and creating transactions. For instance, Chain-java is a Java library for the chain.com. Bitcoin API can help you access the blockchain. With bitcoinj, a library for working with the Bitcoin protocol, you can perform the wallet functions. This library powers a lot of wallets.
If you don’t want to use standard libraries for some reason, you are free to make a Bitcoin wallet app all by yourself. All standards are open and can be found in public sources.
Bitcoin Wallet development can indeed transform the way people send and receive bitcoins. This particular crypto token is indeed becoming more and more popular and the demand is not going to fall anytime soon. The ways by which people can exchange bitcoin for liquid money is also many. This has also proved beneficial for the growth in popularity and prices of bitcoins. Do you want to develop bitcoin wallets? Contact Cryptosoftwares today!