Non-custodial multichain crypto wallet: features, uses, and examples.

12 months ago

Cryptocurrencey wallets remain a vital and regular feature of blockchain technology, allowing users too store, transfer, receive and trade their tokens. Each crypto has some wallet for users to complete transactions and interact with the blockchain.

Crypto wallets can be broadly categorized into two main types: single chain and multichain (non-custodial) wallets. Each type of wallet has its use, features and specific examples. In this presentation, I will focus on explaining what multichain crypto wallets are and some interesting things stuffs about them.

Understanding Multichain (non-custodial) crypto wallets

Multichain (non-custodial) wallets are the type that allows users to store several cryptocurrencies from different public blockchains. This type of wallet is usually non-custodial in nature, meaning that users have full access (custody) and control of the wallet by owning the private keys. Users of multichain wallets are in full charge of everything about the wallet including its security, exporting or importing the wallet and recovery of the wallet in the case of any data loss events.

While single chain wallets are designed for a specific blockchain or users in mind, multichain wallets can accept crypto from all public blockchains, making them the ideal wallet type for most users today. The blockchain space is growing and ever expanding. Each day sees an influx of many new blockchain projects and cryptocurrencies. Having a multichain wallet allows a user to easily manage all their assets from the same platform. We will expand more on that as we look at some popular features of multichain crypto wallets later. Thinking about specific examples of the two types of wallets, there are many. Hive is an example of a single chain crypto wallet since it can only accept hive and related cryptos. Trust wallet is a great example of web3 multichain crypto wallet that can store cryptocurrencies from many different public blockchains.

Features of Multichain crypto wallets

There are many great features of non-custodial multichain crypto wallets. lets consider the following 5:

Supports multiple cryptocurrencies: This should be the very first feature of multichain wallets. They allow users to manage cryptocurrencies from different public blockchains. Users are free to send, receive, store and transact various cryptocurrencies all from the same wallet. With the boom of many crypto projects and blockchains, multichain wallets have become so popular as users find it easier to operate from the same wallet, instead of installing several single-chain wallets.
Supports inter-chain crypto operations: One beautiful thing about multichain wallets is that they give users the capacity to do transactions across multiple blockchains. One such transaction is swapping of one coin for another. Users can swap a coin from one blockchain to another one from a different blockchain. For example, swapping Bitcoin for Ethereum. These kind of blockchain inter-operability can only happen in multichain crypto wallets.
Multi device support through the export/import feature: Multichain wallets have seed phrases which is a combination of 12 words that can be used to import the wallet to another device. It means that the same wallet could be accessed through a desktop PC, laptop, or any mobile devices. The seed phrase or backup phrase needs to be kept in a safe place. Assuming the original device where the wallet was stored got damaged, lost or broken, the wallet remains safe so long as the seed phrase is safe. Once a new device is gotten, the user simple installs a new wallet app, and import the wallet using its seed phrase. In this way, the wallet funds remain safe too.

Further on the import/export feature, a user can also choose to export a specific crypto from the multichain wallet into a single chain wallet as the case may be. For example, a user can export their USDT from Trust wallet to a single chain wallet that supports USDT, once they know the private key of that particular crypto.

Web3 support: Multichain wallets also support the implementation of DApps on the wallet. Such DApps could be for a gaming blockchain, decentralized exchanges or other other Web3 projects. This is a cool feature of multichain wallets that has expanded the possibilities for Web3 growth. Many multichain wallets like the trust wallet supports various DApps for borrowing or lending cryptos, staking cryptos, crypto data tracking DApps, and a host of other Web3 DApps.
Hardware wallet synchronization: Multichain wallets can be made to store private keys in an offline physical storage device often referred to as a hardware wallet. This is one massive feature for security which makes multichain wallets safer for storing crypto funds. Allowing seed phrases and private keys to be backed up online comes with lots of security threats. Hacking which happens everyday could result in keys being stolen - and the crypto as well. So synchronizing the multichain wallet with a hardware wallet allows the user to keep their private keys safe offline. At the same time, they are able to continue making use of the wallets and performing transactions in a more secure manner online.

Advantages of Multichain (non-custodial) wallets

There are many advantages of this type of wallet. Below are some of them:

Access to a several cryptocurrencies: While single chain wallets allow for managing specific cryptos, multichain wallets allow users to store and manage several cryptos from different blockchains all from the same spot.
Security: Non-custodial multichain wallets are the most secure because only the user have access to the private keys. The principle of "not your key, not your crypto" applies here. Users can choose the best way to manage their wallet security such as through storing them offline, or even backing them up using a hardware wallet. In the case of device loss or other data loss events, the wallet can still be imported into another device using the seed phrase.
Web3 Support: Only multichain wallets support Web3 DApps, giving users the opportunity to interact with Web3 projects like games, lending platforms, staking platforms, and so on.
Cross device support: Multichainwallets are truly portable, allowing the user access to their funds through all devices including laptops, desktop computers, palm tops, mobile devices, etc. This ease of use and access from multiple devices make multichain wallets attractive to many users.
More private: Non-custodial multichain wallets allows the user more privacy than other types of wallets. The user does not store lots of private information on centralized servers managed by someone. This enhances privacy and allows users the opportunity to be a little more anonymous.
Decentralized: multichain wallets remove intermediaries from accessing funds or being involved in any way in managing user funds. The are more decentralized in design than single chain wallets.

Examples of Multichain wallets

Here are five great multichain wallets. There are more though:

Conclusion

Having seen the many uses and advantages of multichain wallets, its up to you to decide what to do. If you deal with some many different cryptos, then you could actually consider getting any of the above multichain wallets and manage your crypto assets from one location.

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