first guide you through the basic mechanics of how non-custodial wallets work under the hood.
Some wallets are custodial, meaning that the wallet provider has final control over your assets (for example, if you use an exchange’s wallet, the exchange has custody of your assets); others are non-custodial, meaning that you, and only you, have control over your digital assets.
Although empowering, non-custodial wallets can also feel daunting. Therefore, it’s important to understand how they work. Furthermore, we will probably see new wallets enter the space during this current bull market, so you will find it helpful to have a simple framework to reference to assess the quality of the wallet. Ultimately, being equipped with knowledge will help you to make informed decisions.
In this post, I seek to do exactly this: give you a small education about wallets and equip you with a framework, empowering you to make informed decisions when you encounter a new wallet.
as new wallets enter the market (which they most likely will in this bull market cycle, it’s important to have a framework to rely on to assess good wallets from not so good ones.
in the rapidly changing space of cryptocurrencies, where it’s important to understand the fundamentals of non-custodial wallets to be an educated user
Non-custodial wallets are empowering but, at times, can be daunting. Therefore, understanding thow non-custodial Ethereum wallets work and h win the world of cryptocurrencies. “In this rapidly evolving space, it’s crucial to comprehend the different types of Ethereum wallets available and their respective features, to ensure secure and efficient interactions with the Ethereum blockchain.”
Personally, like many people in crypto, I value self-sovereignty, the ability to have full control over one’s assets, therefore I will focus exclusively on non-custodial wallets in this post. Fortunately, many developers build with self-sovereignty top of mind, which means that non-custodial wallets are easily accessible.
Full
. There is no company or customer service number to call to recover funds.
For the sake of when I use the term wallet, I am referring to non-custodial wallet.
The reason is that na fundamental principle of crypto is self-sovereignty. For the sake of brevity, I w
non-custodial wallets embody a fundamental crypto principle: self-sovereignty.
Unlike a traditional wallet where you store bank cards that are ultimately controlled by centralized financial institutions, Ethereum wallets are non-custodial which means you are fully in control over your digital assets.
Self-sovereignty, the power to fully control your digital assets is both empowering and at times daunting. Therefore, understanding how Ethereum wallets work and why we need them becomes crucial in the world of cryptocurrencies.
For the sake of brevity, from here on out,
This is exactly what DeBank did when they launched Rabby Wallet in 2021.
DeBank, a popular and reputable data provider for on-chain activity launched Rabby Wallet with a “killer feature” that makes Rabby superior to Metamask. This killer feature is its native multichain experience, which means that the wallet automatically switches between different chains. It knows which chain a user is on and will automatically switch. This makes the user experiences really great because Ethereum has a plethora of chains (e.g, Arbitrum, Optimism, Base, Manta, etc.) and the reality is that when you are interacting with dApps, you are constantly switching between chains. Other wallets, like Metamask, require that users manually change networks — this is annoying. Additionally, Rabby has another very useful feature which is alerts around the contracts that you are signing. Rabby will tell you if it believes that a contract is malicious (previously, astute users would check websites such as Scope Scan to ensure they are not interacting with a malcious contract). Rabby has this built in natively. It will also tell you if your wallet has previously interacted with a malicious contract.
In a sign of the DeFi’s increased complexity, Rabby also promises to display more details regarding the contracts users are signing. “DeFi users are blindly signing transactions they don’t really understand,” the post states.
Rabby has a pre-transaction risk-scanning feature, which will alert users if it finds potential vulnerabilities in the contracts the user is interacting with. For instance, if a contract has previously been hacked, users will get a notification.
Rabby was created in 2021 by DeBank, a popular and reputable data provider for on-chain activity.