ELLIPAL Clone Script — How to Develop a Cold Hardware Wallet for Cryptocurrencies?
Today, most trades on the cryptocurrency market are made on centralized exchanges. The most popular ones are Kuna and Binance, yet Whitebit, Coinbase, Huobi, Exmo, etc., are also famous.
Centralized exchanges help their clients buy and store cryptocurrencies. To access their wallets, one needs to go to the exchange’s application on their mobile (if there is such an application). The main drawback is that the cryptocurrency is under the exchange’s possession because it has full access to the coins.
As a result, the users might experience a scenario when the exchange takes all the users’ money. There were such cases in history; Africrypt users lost about 3.5 billion dollars after the platform simply disappeared. Thodex cryptocurrency exchange seized 2 billion dollars the same way.
The other significant risk is that hackers might choose any cryptocurrency exchange as a victim of their crimes. Recently, there were 600 million dollars stolen from Poly Network. However, the hacker gave the money back, as they simply wanted to emphasize the vulnerability of the technology. Atlas VPN statistics show that from 2012 hackers made about 300 hacking attempts of cryptocurrency exchanges.
Storing funds on cryptocurrency exchanges is just as insecure as buying dollars in a banking application and then storing it on a currency card of the same institution. The money belongs to the client, yet the bank keeps it and has full access. The only advantage of the banks is the strict regulatory oversight and the mandatory return of funds through the Deposit Guarantee Fund when damage exceeds 6.5 thousand dollars. The cryptocurrency system cannot provide such guarantees.
Cold wallets gain recognition, and they will minimize the risks on the cryptocurrency market. In contrast to exchanges, only the owners will have access to the wallets.
Some sources tell us that a flash drive storing Bitcoins was stolen, or a folder storing Bitcoins was deleted, yet all assets are stored in the blockchain network. Only the access keys to these assets are stolen or lost. Centralized cryptocurrency exchanges store the keys on their servers, while cold wallet owners store the keys themselves.
The public key is the address of the wallet that functions like any bank card number. If access to the public wallet is lost, other users will only be able to send cryptocurrency to that wallet and nothing more. The private key should be kept secret, for it functions like a bank card PIN code.
The private key is a combination of alphabetic and numeric characters. The characters can be developed into a QR code if the client requires them, which is quite comfortable. Souvenir coins with a molded code on the surface are also considered paper wallets.
Storing keys on a paper wallet has its advantages and disadvantages. It is easy to hide the paper, yet it may get easily lost or destroyed.
These are the most common storing methods for large amounts. Hardware wallets are a particular program that helps record the codes on a device. If one needs to access the assets, they need to connect the device to a computer.
Hardware wallets look pretty similar to flash drives. They require entering a PIN code for access, and it’s a good advantage. Stealing these devices will give nothing to the thieves. However, there are still some disadvantages; one might lose the hardware wallet, which is quite expensive. Some good-quality models cost about $300.
These are any software installed on a gadget or a PC. The users can access them at any time. The risk of storing assets is that viruses or other malicious software can affect the device. Furthermore, one might lose the device, or it can stop functioning. Restoring it is possible, yet it requires a user’s password for registration. If the user does not remember the password, it will be impossible to regain access to the wallet.
Ellipal is sold at an affordable price, which is approximately $160. They ship it in about 70 countries, and the clients can pay via PayPal or cryptocurrency.
The transfer procedure involves selecting a coin entering the desired transaction amount and the recipient's wallet address. Next, the user sets the fee for the transaction, signs it using a QR code, and confirms the transfer. In the case of the reverse operation, i.e., receiving funds, it's enough to select an account, amount, and currency, click ‘Receive’ and copy the account’s address. Access to the cryptocurrency will be granted after sending it to the recipient's account.
The system functions on Android and iOS; it supports 35 coins and about 7 thousand tokens. Furthermore, it grows and improves each year. The peculiar thing about Ellipal is that people can use it with or without other devices.
To sum up, we want to highlight the advantages of Ellipal: it supports 35 blockchains, the work is entirely autonomic, the design is stylish, and the interface is intuitive. Moreover, the wallet provides excellent protection from hacking attacks. This wallet can efficiently store the key due to several security measures. However, if a user possesses significant assets, the experts recommend using various cold wallets.