A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys. In addition to this basic function of storing the keys, they more often also offer the functionality of encrypting and/or signing information. Signing can for example result in executing a smart contract, a cryptocurrency transaction, identification or legally signing a ‘document’. There is a cryptocurrency wallet types: Simple cryptocurrency wallet, eID wallet, Multisignature wallet, Smart contract, Deterministic wallet, Non-deterministic wallet.
A cryptocurrency wallet is analogous to a physical wallet. However, instead of storing physical currency, the wallet stores relevant information such as the secure private key used to access Bitcoin addresses and carry out transactions.
Simple cryptocurrency wallet – A simple cryptocurrency wallet contains pairs of public and private cryptographic keys.
eID wallet – Some wallets are specifically designed to be compatible with a framework.
Multisignature wallet – In contrast to simple cryptocurrency wallets requiring just one party to sign a transaction, multisignature wallets require multiple parties to sign a transaction. Multisignature wallets are designed to have increased security.
Smart contract – In the cryptocurrency space, smart contracts are digitally signed in the same way a cryptocurrency transaction is signed.
Deterministic wallet – With a deterministic wallet a single key can be used to generate an entire tree of key pairs.
Non-deterministic wallet – In a non-deterministic wallet, each key is randomly generated on its own accord, and they are not seeded from a common key.