Ethereum wallets explained | Simply Smart contracts, gas, and transactions
What are the best Ethereum wallets out there, how does the theory work in wallets, what is their purpose, what is gas and how is it calculated well? In this article, we will answer these questions and we will talk about Ethereum wallets, those pieces of software or hardware that allow us to interact with the Ethereum network.
What is an Ethereum wallet?
In essence, it is also known as a client that holds your private key and a secret password that gives you control over your coins. It also provides you with a public Ethereum address that people can use to send a theoretical currency known as Ether.
And that’s almost as far as Bitcoin and Ethereum go in terms of similarities that many non-technical users think of Ether as a currency in the same sense, they look at Bitcoin, they buy Ether in the hope that its price will go up, they pay for things that contain Ether and more, but they don’t. Ether is designed for the same purpose as Bitcoin.
Ethereum is a network of independent computers that work together as one supercomputer. This supercomputer executes pieces of code known as contracts or smart contracts. Interacting with contracts requires more complex communications than simply sending X amount of money from Y to Z. As does Bitcoin.
How to build Ethereum?
Ethereum wallets are the tool that we use for this communication, so to understand wallet theory, we first need to understand how Ethereum is built in Ethereum, there are two types of accounts, the basic type of account in Ethereum is called an EO or external owned account similar to how it works. A large coin wallet, where you have an Ethereum address controlled by a private key, and anyone can open as many EO as they want as well as send and receive ether with methods that can create and run contracts.
The second type of account is the contract account, which are accounts that have a code associated with them. Each contract published on the theoretical network has its account, which includes a unique Ethereum address, but unlike an external account address, the contract account does not contain a private key that controls it, so how is it controlled in a way? Good at calculating the contract, the code that defines the contract includes a set of pre-defined triggers that control the computation. In other words, the terms controlling how the contract works are that it can receive hard-coded EOS contract accounts from the beginning, and if triggered, send ether or Even create additional node accounts.
How to create smart contract wallets in Ethereum?
Now that you understand how Ethereum is built and that transactions are used to help accounts talk to each other, we can move on to Ethereum wallets, as some Ethereum wallets will only allow you to transfer value or send ether between accounts.
Other wallets will also allow you to deploy or activate nodes. These wallets are known as smart contract wallets similar to Bitcoin wallets and are sometimes referred to as clients or contracts. There are two types of clients:
Complete clients
Light clients.
A full node is a computer that carries the entire history of the Ethereum blockchain from its inception to the present day.
Full nodes have drawbacks such as increased memory and computer usage, however, they allow you to verify transactions on the Ethereum blockchain without having to trust anyone’s word because full nodes are an integral part of the Ethereum network.
How to run an Ethereum node.
There are different programs to help you run a full Ethereum node, we will not discuss them all but we will talk about the most popular ones. The first one is the Death Short Forgo Ethereum program developed by the Ethereum Foundation, a non-profit organization created to develop the code and community for Ethereum Death is the most famous and used program on the market. wide range.
The second is Mist because Death is a tool designed for developers, and Mist was created to allow non-technical users to interact with it, so while you are technically using Death Myst provides you with an easy user interface to talk to.
Finally, Parity is a private company based in London whose mission is to empower businesses to take advantage of blockchain technology. They have developed software to run Ethereum full nodes and it is considered the second most popular full client.
SPV wallets
It is software that relies on third-party full nodes to obtain information when needed instead of maintaining a complete copy of the blockchain. This means that it requires less space and can run on devices with limited space such as mobile phones, being the second largest currency by market capitalization in the world. The cryptocurrency market has attracted a lot of attention from Ethereum users.
Ethereum hardware wallets
If you are serious about security, I suggest storing your Ether on a hardware wallet While it is the most secure way to store your coins, hardware wallets cost money, and hardware wallets are not smart contracts Wallets by design can only send and receive ERC 20 tokens.
Summary
Now you have a better understanding of Ethereum wallets, gas transaction fees, Ethereum accounts as well as the various wallets you can choose from. As you have probably noticed, the Ethereum service is more complex than Bitcoin mainly because it aims to perform more complex functions than just sending funds from point A to point A. B.
