DeFi Wallet is a decentralized ledger based on blockchain technology designed to have a secure and reliable wallet. This is designed to gain the trust of every user in the system.
The estimated reach of these digital wallets in terms of worth could go up to 20,000 million dollars by the end of this decade, hence a lot of businesses and banks are thinking to move towards adopting and investing their money in a secure system like DeFi wallets.
Here are a few ways which can be used to develop a DeFi wallet with prime security;
Multi-sig support means multiple signatures support. One way to protect and create a secure DeFi wallet is to make sure that your wallet’s smart contract is locked by multiple signatures.
So, for example; a hacker gains access to one key of your wallet, he will not have access to the entire asset pool until he has access to all the signatures used to encrypt the wallet.
Two Factor Authentication is known as the 2FA method used to secure the applications and DeFi wallets. This system eliminates the risk associated with thirst parties present in money transactions which can be a cause of several frauds or money stealing. By implementing this technique, you potentially secure your Defi wallet from threats.
This method adds an extra layer of reliability for users by secure the wallet for legitimate users only. It works by creating an OTP known as a one-time password. This password is unique and temporarily valid for a short period of time. All the net banking apps use this system to protect your account from hacking.
This is the most common source of security system used in almost all security-driven programs. Even our ID cards are biometric these days. Biometric means one used their face or fingerprint recognition, this factor is saved in the system and all their transactions can happen with this biometric code which will always be unique as no two people will have same fingerprints hence protecting your wallet from any security issues.
4.Optional Sessional Logout:
Optional Sessional logout is a way by which when a user takes zero action on the wallet for an interval (usually pre-defined in the smart contract). The shorter the pre-defined interval is set, the less time an attacker needs to use the valid session ID. This method improves the security of the user’s DeFi wallet.
Crypto DeFi wallets have seen their hype in the past few years and they are grown exponentially. Considering that in mind, businesses should plan on adopting a secured DeFi wallet.