What is a Digital Wallet?

Normally people perceive a wallet as a small pouch where you can keep a significant amount of loose cash limited to size of the wallet and a number of debit and credit cards for financial transactions. Well guess what? A cryptocurrency wallet operates almost by the same fundamental principles that warrant you to have a leather wallet in your pocket.

A cryptocurrency wallet however is much different and much more complicated. Essentially, a cryptocurrency wallet is a software program that stores private and public keys. It interacts with various blockchains so that the user can send and receive digital currency like Ubricoin (UBN) and can monitor transactions and balances through this wallet. By unpacking the few sentences above, you realize that the cryptocurrency wallet is the channel, a sort of ‘gateway’ to the blockchain. Now, with a normal leather wallet, you can carry money around, maybe even larger amounts in your pockets. But for any transaction involving cryptocurrency, you need a cryptocurrency wallet.

 Unlike many would assume, these digital wallets don’t actually store currency, no! They show a record of transaction stored on the blockchain. The currencies are not stored in any single location nor do they exist anywhere in any physical form. So using a digital wallet, you can monitor your balance of any single cryptocurrency, send some and conduct other operations without the worry of having a single coin stolen. So when someone sends you some UBN, what they are doing is essentially acknowledging the transfer of ownership of the coins to your wallets address.

In order to unlock the potential that blockchain has come with, you need a digital wallet, just as you would need a spoon to eat. You can eat with your hands, but isn’t a spoon more efficient. Blockchain eliminates the need of a third party during the transfer of assets (digital), which makes it the financial system of the future. So if you don’t like the way the banks are handling your cash, do it yourself. Get yourself a wallet, use it to purchase some crypto and wait for it to grow in value.

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