The Role of Wallets in Blockchain and Cryptocurrencies

What does your wallet do?

A cryptocurrency wallet is a software application that stores its owner's public and private keys while providing a user interface that allows users to read cryptocurrency balances, transfer cryptocurrency, and interact with decentralized applications (dapps).

What is in someone's wallet now?

Private keys

The term 'wallet' is slightly misleading, as cryptocurrency wallets do not store cryptocurrency but rather can read and interact with the blockchain's digital ledger by storing its users' public key (what is read by the blockchain to receive transactions) and private key (what is read by the blockchain or individuals and authorizes transactions and proves ownership of blockchain assets).

Digital Tokens (Cryptocurrencies)

Crypto wallets can store cryptocurrencies, a digital currency in which transactions and records are stored on a decentralized ledger secured by cryptography rather than a central authority. Most cryptocurrencies are fungible tokens (replaceable by identical tokens).

Digital Assets (NFTs & Ordinals)

Crypto wallets may also store digital assets or collectibles, referred to as Non-Fungible Tokens (irreplaceable by another identical token) or Ordinals (on Bitcoin). These tokens serve as proof of ownership via an immutable digital receipt. They can represent objects that are digital, physical, or a combination of the two to verify authenticity and proof of ownership.

What are people using their wallets for?

Interacting with Decentralized Applications (Dapps)

Decentralized applications (dapps) are the backbone of the decentralized web. When opening a dapp, users will be prompted to sign a message (through a gasless transaction) that securely transmits a free transaction that verifies that the user is, in fact, the owner of the wallet they are attempting to sign in with. Within the dapp, users can use their wallet to manage interactions and transactions or authenticate use and permissions.

Manage Cryptocurrencies and Blockchain Assets

Managing a Decentralized Community While Protecting Brand Compliance

What does the Foolproof token do to make decentralized user management accessible and compliant?

What is the FoolProof Token (FPT)?

The FoolProof Token (FPT) is a groundbreaking innovation in the blockchain space, designed to address some of the most pressing challenges faced by users and developers in the decentralized ecosystem.