How can blockchain be used to keep digital assets safe? What apps can consumers use?

By Shrikant Bhalerao

Digital assets are becoming increasingly popular because they are easy to trade and store. They also offer a high degree of security that traditional investments do not and are difficult to counterfeit. The infrastructure development and integration of blockchain brings out the full potential of digital assets.

There are many reasons for the rapid adoption of digital assets including-

➢ They can be used to hedge against inflation.

➢ They offer a way to diversify one’s portfolio.

➢ They are becoming more accessible to ordinary people through platforms such as Coinbase and Robinhood.

➢ They are not subject to the same regulation as traditional investments, which makes them more attractive for some investors.

➢ They offer a degree of flexibility and liquidity that traditional investments do not.

The blockchain is a distributed database that allows secure, transparent and tamper-proof storage of digital assets. What makes blockchain secure and ideal for storing digital assets is its decentralized nature. By using cryptographic hashes, each asset can be securely stored on the blockchain and tracked as it changes hands. This makes it an ideal platform for keeping track of digital assets. In addition, blockchain allows the creation of smart contracts, which can automate the management of digital assets, ultimately increasing overall security.

While discussing blockchain security, it is also important to look at the vulnerabilities. Blockchains have been attacked in various ways, the main ones being phishing, routing, Sybil and 51% attacks. As a user, you should be most concerned about phishing, where fraudsters attempt to steal a user’s credentials.

A user must understand the type of blockchain they are interacting with, whether public, private, or permissioned, and then choose a medium to store their assets accordingly. Because managing your digital assets is probably one of the most important aspects of owning a digital asset. The most widely used ways to safely store digital assets are via blockchain wallet apps, escrow and non-escrow. Major apps based on custodial wallets include Coinbase, Binance, BitGo and KuCoin, which operate on a centralized level. Non-custodial wallet apps like Exodus, Ledge Nano S, MetaMask, TrustWallet and others operate on a decentralized level.

Also read: 31 percent of Russians expected to buy cryptocurrency in the next six months: Survey

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