Blockchain development: How to create a Bitcoin wallet-like application
With cryptocurrencies keep evolving, now we are seeing the increase in Bitcoin wallet-like applications. Providing security of transactions, the privacy of user data, and multicurrency support, they facilitate financial operations and build trust between the two parties.
Bitcoin, a peer-to-peer payment system and the most famous cryptocurrency of today, became possible due to blockchain technology, which is sometimes called the new internet. It is the blockchain that joins decentralization, cryptography, and distributed data record to ensure the removal of intermediaries, traceable transactions, and safe data storage.
With all these benefits taking the center stage in the business world, companies and corporations start integrating innovative ways of payment. Such giants as Amazon, Zappos, WordPress, Expedia, and Bloomberg have already adopted cryptocurrency transactions and use them together with other online payment methods. Maybe, now is your turn?)
In this post, we’ll consider the option of building a Bitcoin wallet-like application and offer you meaningful recommendations associated with crypto wallet app development.
Why should use crypto wallets and cryptocurrency payments
Transferring digital currencies is easier and less time-consuming – A user doesn’t have to wait before the funds are available like it is in traditional financial transactions. In speaking of international payments, sometimes a financial operation can take a few days. When using blockchain, you will need only several hours.
Transaction completion is cheaper than in the case of traditional money transfers.
Cryptocurrency transactions are decentralized – There is no regulatory body (government) or a central authority that controls them. The use of p2p system means that each crypto wallet app acts like a node in the blockchain, a public decentralized network, which maintains an increasing number of transactions.
Transactions are completely anonymous – All transactions are fully encrypted. To make a cryptocurrency transaction a sender needs the address of a recipient’s wallet, which can look something like this 1Kitrn6ziMNniSKp67THJdF5jWDgR. When having the address, a user can view the amount of money that was sent but you won’t be able to check out what wallet (and whose) is connected to this address.
They provide the highest security level – Users are protected from fraud and data distortion. Nobody can steal your money without special keys – one public and one private – only you possess them. Also, each transfer includes a user digital signature. Once the cryptocurrency is moved to the network, all the data about the transaction is fixed and recorded on the ledger with no ability to be changed or deleted. Thus, you receive a reliable blockchain-based solution that guarantees that the transaction will be successfully completed.
Unfortunately, there are some issues that a bit disrupt such an attractive picture, for instance, fluctuations in cryptocurrency exchange rates. You needn’t look hard to find examples – take Bitcoin, the most visible illustration of high ups and downs!
However, there are always useful services offering good ways for conversion to the currency users would like to receive. Let’s run a little ahead: during crypto wallet app development, make integration with such a service to bypass this challenge. Despite some risks associated with cryptocurrencies, banks cannot offer such high levels of security, trust, and transparency.
Since almost every cryptocurrency provides its own electronic wallet, you can either integrate some to use for payments or develop your own Bitcoin wallet like application according to your business requirements. Both ways have their pros and cons.
Simply put, if you don’t need something extraordinary and have several simple tasks to solve, choose the first option. If you need more complex functionality and have more specific challenges, you should think about building your own solution.
Wishing to bridge the gap between real and virtual worlds, technological startups are working on cryptocurrency initiatives, which include crypto wallet app development too. Though there are so many famous e-wallets like Bitcoin, Blockchain, Coinbase, and many others, they manage to find something truly new and valuable.)
If you have some questions, feel free to apply to the team of blockchain experts who will always help you with choosing the way. We start with analyzing your requirements and then define the best option taking into account all project goals and peculiarities.
A blockchain-based crypto wallet app that can be instantly downloaded from the App Store or Google Play is a good way to simplify and secure transactions for both non-technical users and business organizations.
A Bitcoin wallet-like application is a solution that generally involves the following features:
- user authorization (sign up/sign in)
- the wallet itself (to store and exchange cryptocurrencies)
- private keys for user cryptocurrencies
- support of several cryptocurrencies / multicurrency support
- conversion rates to track cryptocurrency price
- users can check out their cryptocurrency balance any time
- QR code scanner (to send and request money)
- push notifications (alerts on transactions, price changes, etc.)
- backup and restoration feature (for the information safekeeping)
How to define the functionality for a crypto wallet app
Before starting Bitcoin wallet-like application development, clarify product goals and define the audience you need to reach. Another important thing that should be made is to conduct competitor analysis and then choose a market niche.
Answer on the following questions: Do you plan to target only cryptocurrency traders or want to attract ICO investors too? How will the app add value to users? What features should be implemented in order to provide this value?
In most cases, it’s better to begin with MVP development (minimum viable product), meaning only the key features will be realized in the first version. By following this approach, you save time, reduce costs, and quickly receive a working solution. Then, you measure the user reaction and design the application they dream about.
What’s more, building the app with top-priority features and then moving to the implementation of others is much more convenient than developing a rich functionality from the very beginning. As a result, you achieve a higher quality and meet user expectations.
Also, find out how we use a Pre-Discovery stage to define the app functionality and deliver successful blockchain solutions that solve customer challenges.
How to choose the technology stack
If you want to build a crypto wallet app, you should make it for (at least) the two most popular operating systems – iOS and Android. Many companies add the web to attract more users and provide the highest level of convenience. We say, now having the wallet available on mobile and web is a must-have.
The tools that programmers use in their work have a crucial role as they directly impact such factors as product reliability, scalability, security, and so on. Generally, the backend part is designed with the use of Java or Node.js. Also, there are useful libraries available (Chain-java, BitcoinJ, etc.) that contain most features required for crypto wallet app development.
The frontend is usually based on Angular or React. Another technology, called React Native, has become very popular recently. A plus is that it enables to create modern interfaces faster and easier while saving costs and quality. When using React Native, a developer makes only one application that can run on both iOS and Android.
In speaking of practical examples, let’s consider the technology stack of Blockchain wallet, one of the most famous applications. The backend was created with the help of Java, Clojure, and Node.js, a frontend part was implemented with AngularJS, while the database is MySQL.
The app is available for both iOS and Android users. When building an iOS application, blockchain developers used several tools, namely Storyboards, JSBridgeWebView, while for Android they applied Gradle, BitcoinJ, Apache Commons, and Junit.
Certainly, the determination of the technology stack widely depends on the project complexity. Above we’ve made some kind of introduction to the most popular and one of the best tools that are used now and will be applied in the near future.
Specializing in blockchain application development, we’are always ready to help you with your project, including marketing research, the definition of the app features, and the development as well!
How to improve the security of a crypto wallet app
Security is essential for any app, but when building a Bitcoin wallet-like application, the strongest focus must be made. There are several features you should integrate to improve product security.
- Provide a 2-factor user authentication. A simple way to create an additional protection level. You can use login confirmation with a mobile number, PIN, or Touch/Face ID.
- Integrate auto-logout. This feature will enable to prevent anyone from using electronic crypto wallets if a user smartphone was lost or stolen.
- Ensure that the app generates a separate public key for each cryptocurrency transaction. By designing public keys designed for every new transaction you implement an additional security level, thus preventing frauds and hacks.
Also, pay attention to testing and debugging stage, which has a direct impact on project success. If users will come across some bugs or errors, they will just stop using your app. Worse, will leave negative comments or write bad reviews.
The worst thing is some security vulnerabilities that may stay unnoticed. So, when testing the application, blockchain developers must focus on achieving the highest security level.
Hope, the article has been useful to you.) If you have some questions on want to discuss a project idea, you’re welcome to apply to the team of experienced blockchain experts! Having many projects successfully delivered, we are always ready to help you with yours!