Manage asset security

Blockchains can store much more data than most public blockchains actually do in practice or allow. The primary use of a blockchain, however, is to exchange assets. For example, cryptocurrencies use a specific payload in every transaction, which holds the amount of that currency that is being exchanged. Similarly, other blockchain systems record the possession of assets. Ownership of assets is demonstrated through the use of a private key (unique string) generated by a hashing algorithm. Assets are stored using the private key in so-called wallets. Despite the value of the keys that are stored in wallets, like any data, they can be lost or stolen, just like cash and real-world assets, for example, diamonds. In the case of theft, it is not a failure in the security of a blockchain, but rather personal security has failed by storing the private key insecurely. Of course, these wallets are not only for personal security, but they also provide a robust security framework for (especially public) blockchain implementations. Without it, assets can easily become liabilities and compromise the blockchain's integrity. There are a few ways of storing your assets securely in different kinds of wallets, and they vary in terms of features. Let's look at the available types, so that you know which one suits you best.