When talking about «wallets» there are many doubts (especially among new users) since the different modalities and types that exist can create certain confusions, in this article we will talk about the main differences that exist between a Wallet and Microwallet, and we will know the details of the security of the wallets

What is a Wallet?

A Wallet or cryptocurrency wallet is a kind of “bridge” that allows us to manage our own cryptocurrencies. They are one of the most important elements in the crypto and Blockchain technology world. Its use is essential when you want to manage our cryptocurrencies.

A wallet is a software or hardware exclusively designed to store and manage the public and private keys of our cryptocurrencies. Let’s remember that cryptocurrencies are transaction records that are contained in the Blockchain, which is operated by nodes that are interconnected with each other around the world, due to this, the public and private keys within a Wallet are what give us ownership and the right over cryptocurrencies that are transferred to a particular address.

What is a Microwallet?

A Microwallet is a mini wallet (or mini wallet), which becomes a kind of “place” where payments are stored before they are processed and sent, for example when making a transaction on the Bitcoin network, it is sent to the blockchain to be confirmed, which requires a certain time, and generates a fee for each transaction, however with a Microwallet, operators and tap owners send coins to a certain address and they are stored there, and then they are split off-chain immediately.

Once the threshold is reached, the coins are available to be withdrawn as an end-user, it is at this moment that the transaction “returns” to the blockchain. The good thing about this service is that once the withdrawal limit has been reached, nothing has to be done since the coins are automatically sent to the address of your Bitcoin wallet.

Wallet Security

The wallets or Wallets use advanced encryption techniques that are mainly managed through the Blockchain, and in this way, guarantee total security to its users to receive, save and send cryptocurrencies without many risks and maintaining the privacy of transactions.

How are these wallets different?

The Microwallet is a small purse, while a Wallet is a purse as such. In the Microwallet small transactions arrive, that is, 25, 40, 50 or 100 Satoshis, up to a certain limit, and they are sent to a real account or to a main wallet or purse. Here this purse or Wallet does not charge per transaction, it means that before creating a Microwallet, a Wallet must be created, in order to have an address to send the cryptocurrencies to.

This Blockchain becomes the main wallet where all transactions arrive. Another difference is that in a Microwallet, small accumulative payments are received to form a large payment so that it reaches the Blockchain wallet, where you can make transactions such as to receive, store and send, it is the wallet or Wallet. In contrast, in the Microwallet, only payments are received.

What do you think about this topic? Did you know about the existence of microwallets?

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Image by Adelou Eletu via unsplash.com under creative commons license.

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