- Decentralized exchange aggregator 1inch announced plans to launch a hardware wallet by the end of 2023.
- Their main competitors will be Ledger and Trezor.
- The device will have a 2.7-inch screen and allow wireless transactions via QR codes or NFCs.
Buying and trading crypto is great, but storing crypto requires a wallet, either cold, hot, or warm. Decentralized exchange aggregator 1inch Network recently developed a secure device to hold the assets of crypto users in the form of a hardware wallet.
This hardware wallet would be a physical device almost the size of a mobile phone, claiming to offer a secure way to store a user’s private key offline. And this new wallet comes along with 1inch’s existing web-based wallet.
The hardware wallet announced by 1inch is going through its final stages of development and testing before being released to the public later this year. In a statement shared with The Block, when it was launched, it would compete with larger players like Ledger and Trezor.
“As the 1inch Network is eager to expand its ecosystem of products and projects, here comes the 1inch hardware wallet, a cutting-edge solution for cold crypto storage.” – 1inch team.
The hardware wallet would have a 2.7-inch touch display. The wireless device will run on rechargeable batteries, like Lithium-ion. The user can sign a wireless transaction through the device via a QR code of NFC technology.
Daily volumes make 1inch the largest decentralized exchange aggregator. The project allows traders to access liquidity from multiple decentralized exchanges to swap tokens within a single platform. Supposedly the aggregator registered a $1.8 billion volume in the past week alone.
There are three types of crypto wallets, cold, hot and warm.
A hot wallet is what an exchange provides the user at the time of opening the account; the user holds the private key and password, while the public key and the custody of the assets lie with the exchange. This provides ease of transaction and trading as it’s always online and easy to access. Moreover, this arrangement has proven risky in the case of FTX, where users’ money was misused.
A cold wallet is typically a physical device that stores the user’s private key, passwords, and assets. The user needs to connect it to a system to transfer some amount or trade. It increases the security but adds the hassle of carrying it around for every transaction. Also, keeping it safe is of utmost importance, as nothing can be retrieved once lost.
A warm wallet is nothing but a hot wallet not used for longer; it is online but rarely used. Though it tries to provide the best of both worlds, it’s just a perspective and depends on use cases.