The way to keep your cryptocurrency : hardware wallet

As cryptocurrency gained popularity, much hacking has occurred throughout the process of financial transactions. For example, in February, the Italian virtual currency exchange “BitGrail” was hacked, and about 17 million “virtual currency Nano” were withdrawn without permission. Considering that the nano-market price was around 9,600 won at the time of the hacking, the total damage was about 160.3 billion won. Due to these repercussions, more and more people are distrusting the system. 

Fortunately, on that note, the Hardware Wallet system allows individuals to store virtual currency safely. Are you asking how? It is easy to understand a hardware wallet if you think of a ‘virtual currency wallet.’ A cryptocurrency wallet literally refers to a wallet that stores cryptocurrency. Strictly speaking, however, cryptocurrency wallets do not store cryptocurrencies. Since it is a ‘virtual currency’ without physical existence, no currency can actually be held. So, it only records the ownership and transaction details. On the other hand, blockchain holds almost all cryptocurrencies, storing ownership and transaction details as well as information about all cryptocurrency participants.

After all, in the case of ownership, all you need is a way to prove it. This is when the private and public keys come in handy. A private key serves to verify ownership for free money transactions. On the other hand, the public key allows individuals to hold their assets securely. Luckily, just as you can create multiple accounts with your personal information, you can create various public keys using your private key. While the private key is so important to send or receive cryptocurrency., hardware wallets are just as crucial since it enhances security in cryptocurrency wallets. 

Today I’ve talked about the most powerful security technology called a hardware wallet. However, as cryptocurrency is increasingly getting popular, the security problem will keep appearing. Therefore, I think companies must keep their cryptocurrency safe amid busy exchange.

By: Yoonjun Song