As the popularity of cryptocurrencies and NFTs continues to soar, the need for secure storage like a crypto Ledger wallet and management of digital assets becomes paramount.

This is where crypto #wallets come into play.

Whether you’re new to the world of crypto or an experienced investor, understanding the fundamentals of crypto wallets is essential.

In this article, we will delve into the intricacies of crypto wallets, including their functionality, types, and the renowned #Ledger hardware wallet.

By the end, you’ll have a clear understanding of how Ledger can provide a secure and reliable solution for safeguarding your digital assets.

What is a Crypto Ledger Wallet?

Before diving into the specifics of Ledger, let’s start with the basics.

A crypto wallet is a digital tool that allows users to securely store, send, and receive cryptocurrencies.

When you create a crypto wallet, it generates two unique keys: a public key and a private key.

The public key acts as an address for receiving crypto, while the private key is used to sign transactions and access your digital assets.

Crypto wallets come in various forms, including #hardware wallets, mobile apps, #web-based wallets, and desktop wallets.

Each type offers its own set of advantages and disadvantages, depending on factors such as convenience and security.

Source: https://perseuscrypto.com/web3/exploring-the-crypto-ledger-wallet/

Seed

When you make the excellent choice of leaving exchanges, you’ll need to download a wallet beforehand (Wasabi, Electrum, Samourai, etc.).

Essentially, these wallets generate a “seed,” which consists of 12 words (or 24 words, depending on the wallet) chosen from a list of 2048 English words.

As long as you don’t lose this seed, you’ll always be able to regain access to your bitcoins. You should write it down on metal (there are plenty of solutions like cryptosteel) and bury it in your garden.

Example of a seed:

Fluid ancient satoshi rare zoo song object mother kick green human kitchen

For someone to take control of your bitcoins, they would have to discover these 12 words in the correct order. Is that possible? Yes. Is it probable? No.

Twelve words chosen from the same list of 2048 words means there are 2048^12 possible combinations.

That’s 5,444,517,870,735,015,415,413,993,718,908,291,383,296 combinations. In other words, 5444 sextillions of combinations.

In reality, it’s slightly less since the twelfth word of a seed is calculated from the previous eleven words. So, the actual number is 340,282,366,920,938,463,463,374,607,431,768,211,456 combinations.

If you could make 1 trillion guesses per second with a billion different computers, it would take over 10 billion years to exhaust such a number. That’s nearly the age of the universe.

To give you an idea, the probability of flipping heads a hundred times in a row is 1 in 1,267,650,600,228,230,000,000,000,000,000.

So, it’s 268 million times harder for an attacker to find your seed than to flip heads a hundred times in a row.

But there are more than one seed…

That’s right. So, the probability of finding any seed is actually higher.

Let’s imagine that each human has their own wallet. That would give us eight billion seeds. So, we need to divide the 340,282,366,920,938,463,463,374,607,431,768,211,456 possible combinations by eight billion.

The probability of finding a seed would then be 1 in 42,535,295,865,117,307,932,921,825,928.

It would take a billion computers capable of testing 1 trillion combinations per second to run for 1.3 years. That’s less than the age of the universe, but the probability remains zero.

Today, with a billion bitcoin addresses, we can assume that there are perhaps around 50 million seeds.

[Indeed, all addresses generated by a wallet derive from private keys that themselves derive from the wallet’s unique seed. We’ll come back to that.]

Therefore, we need to divide the 340,282,366,920,938,463,463,374,607,431,768,211,456 possible combinations by 50 million.

The probability of finding a seed today is about 1 in 6,805,647,338,418,769,269,267,492,148,635. That’s 215 years if we go back to our computer example.

We could also say that the probability of generating a seed that already exists is 1 in 6,805,647,338,418,769,269,267,492,148,635.

The lucky person would then end up with someone else’s BTC…

What is the seed used for?

The seed is the core from which a wallet creates private keys. And it is from these private keys that the famous Bitcoin “addresses” are generated.

It’s important to understand that there are no actual bitcoins in a wallet. It only contains private keys that allow you to move the BTC associated with them.

Bitcoins are technically unspent transaction outputs (UTXOs). There are currently around 80 million UTXOs whose list is maintained by each node in the Bitcoin network. They are fractions of bitcoin linked to a public key, which is in turn linked to a private key.

Each transaction (sending UTXOs) requires a valid private key (or multiple keys if the transaction contains multiple UTXOs). The public key is comparable to a bank account number, and the private key is like the PIN code of a bank card.

In a Bitcoin transaction, the recipient’s public key is represented by a Bitcoin “address” derived directly from their public key. Once the transaction is completed, only the recipient possessing the corresponding private key for that address will have control over the bitcoins.

Public key cryptography

There are two main families of cryptography algorithms:

Symmetric algorithms, also known as secret key algorithms (a single key)

Asymmetric algorithms, also known as public key algorithms (a private key and a public key)

Asymmetric cryptography lies at the heart of Bitcoin transactions. That’s where you should dig deeper if you want to better understand concepts like private keys, public keys, etc.

The first public key cryptography system was the RSA system, named after its inventors Ron Rivest, Adi Shamir, and Len Adleman. It was first presented in 1977 in the mathematical chronicle of the Scientific American magazine.

At its core lies the difficulty of factoring large prime numbers multiplied together. Here’s a great article if you’re interested.

The Bitcoin private and public key system, on the other hand, uses asymmetric cryptography based on elliptic curves.

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#BTC #Ledger #hardware #BRC20 #CryptoPatel

In a strategic move to accelerate the adoption of the digital yuan, China is placing its focus on hard wallets. The country believes that introducing hard wallets will encourage more widespread usage of the central bank digital currency (CBDC) and is specifically targeting the "elderly and children" demographic.

By promoting the use of hard wallets, China aims to enhance accessibility and convenience for users of all ages, including those who may be less tech-savvy or unfamiliar with digital #payment #systems . The emphasis on the "elderly and children" reflects China's commitment to ensure that the benefits of the digital yuan reach every segment of society.

Hard wallets, also known as #hardware #wallets , provide a secure offline storage solution for digital assets. They typically resemble USB devices and store the private keys necessary for accessing and transacting with cryptocurrencies. By using hard wallets for the digital yuan, individuals can store their CBDC securely and have direct control over their funds, reducing the risks associated with online wallets or centralized platforms.

The introduction of hard wallets aligns with China's broader objective of establishing the digital yuan as a widely accepted and #trusted form of digital payment. By targeting the "elderly and children" demographic, China aims to foster familiarity and acceptance of the CBDC from a young age, ensuring a seamless transition into a digital payment ecosystem for future generations.

The move also demonstrates China's commitment to financial inclusion, recognizing that accessibility is crucial for the widespread adoption of any digital currency. By prioritizing user-friendly solutions like hard wallets, China aims to overcome potential barriers that might hinder the adoption of the digital yuan by older or less tech-savvy individuals.

As China focuses on promoting hard wallets for the digital yuan, it underscores the country's determination to stay at the forefront of the global CBDC race. By prioritizing accessibility, security, and usability, China aims to position the digital yuan as a leading CBDC that can seamlessly integrate into everyday transactions and cater to the needs of all segments of society.

As the digital yuan gains traction and evolves, the introduction of hard wallets will play a crucial role in driving its adoption. By providing a secure and user-friendly storage solution, China is laying the foundation for the digital yuan to become a prominent player in the digital payment landscape, bringing the benefits of CBDCs to the "elderly and children" and establishing a strong foundation for the future of digital currency in China.

🔹The first method is a #hardware wallet.

It's a physical device that stores your private keys and allows you to access your funds on the go. These devices are designed for high security as they are not connected to the internet so they cannot be hacked.

Popular hardware wallets: Ledger, Nano S and Trezor.

🔹The second method is a #software wallet.

These are programs that store your private keys on your computer or mobile device. These wallets can be downloaded from the web and installed on your device, allowing you to access your funds from anywhere in the world with an internet connection.

The most popular software wallets: Meta Mask, Trust Wallet.

🔹The third method is the #Exchange .

I think everyone knows this method and most likely you use it. But remember that while your money is on the stock exchange, it is the money of the stock exchange. This was clearly shown to us by #FTX .

Keep the #coins you use in trade on the exchange.