The use of bitcoin wallets is increasing rapidly as various financial businesses are inclining towards bitcoin wallet applications for safe and secure transactions. As cryptocurrency is not controlled by any governmental organization or third-party, there are very few chances of bitcoin wallet apps being abandoned. Industries such as healthcare, eCommerce, banking, and retail stores adopt bitcoin wallet app development for receiving and sending money safely.
Due to this immense growth of bitcoin wallet applications, various industries have started investing in blockchain for better profits. As the environment offered by bitcoin wallets for sending and receiving payments, the demand for bitcoin wallets is increasing in the market. With cryptocurrency, people can transfer funds with very low transaction charges or even zero transaction charges in some cases.
What are the Uses of Bitcoin Wallets?
The first thing to consider before developing a wallet application is who will be using it and its purpose? The features, designs, type, and marketing strategy depend on the targeted customers. But if you want to develop an application that only accepts payments in bitcoins, bitcoin wallet applications can be created with various APIs. Developing a wallet application for a commercial SaaS project requires some extra money and effort. Here are some examples of the use of bitcoin wallets:
This option involves that the bitcoin wallet application created will be used in Apple Pay, Google Pay, or PayPal. It means that the users can transfer money to each other and pay for the products and services. So, the eCommerce bitcoin wallet application should be intuitive, simple, and easily accessible for users.
2. Cold Coin Storage
These applications use wallets to store coins for the long term, which implies improved reliability and high security. To fulfill these demands, developers usually create hardware cryptocurrency wallets for mobile or desktop apps with high-security features such as biometric authentication. Developing such apps requires a lot of money, time, and effort.
Private companies and individuals can also launch their cryptocurrency wallets with a SaaS solution n a similar way they launch their online store's website through WordPress or Shopify. But implementing such types of SaaS wallets is extremely expensive, difficult, and time-consuming.
4. Payment Receipt on the Site
Payments in the form of bitcoins are growing in online stores and other eCommerce websites. Custom APIs are used to connect online stores with a web wallet, cryptocurrency exchange, or SaaS solutions.
Types of Cryptocurrency Wallets
There are five different types of cryptocurrency wallets, and each wallet has its unique set of features and security levels to make sure that they provide full safety to bitcoins and private keys. The five main types of cryptocurrency wallets are desktop wallets, hardware wallets, mobile wallets, paper wallets, and online wallets.
1. Hardware Wallets
These wallets are flash drives that need to be connected with a laptop to access cryptocurrency balance management. As hardware wallets store private keys inside the device, they are considered the safest. An application is embedded in the flash drive, which is used to manage these wallets.
Hardware wallets are designed for business people, investors, miners, and other users who deal in a large amount of bitcoin and want to protect them from hackers and frauds. Developing hardware wallets is quite difficult from other wallets because you also need to create an application for the flash drive in which the software will be integrated. Some of the most common hardware wallets are Model T, Ledger Blue, Trezor, and Ledger nano X.
2. Paper Wallets
Bitcoin wallets' creation in the paper wallet includes software development for encrypting public and private keys to store them safely on paper. The ways of encrypting the keys are different. People who usually don't trust digital protection use paper keys. The most common examples are Wallet Generator and Eth Address Wallet.
3. Desktop Wallets
These types of wallets operate within the framework of desktop operating systems such as Linux, macOS, and Windows. Desktop wallets have offer maximum functionality, a simple interface, and high-level security. Moreover, desktop wallets enable launching full nodes for storing all the blockchain data and validating the transactions. Examples of desktop wallets are Exodus, Armory, Bitcoin Core, Electrum.
4. Mobile Wallets
These wallets are used to sell, buy, and transfer bitcoin through a smartphone. Mobile wallets have a simple, attractive, and convenient design and some additional features such as fingerprint authentication, QR code scanner, fast transactions, etc.
The private keys generated with mobile wallets are stored either in the phone or an external server. This is the reason why mobile wallets aren't recommended for transferring huge amounts. These are mostly used for small-scale daily transactions. Examples: Bitcoin Wallet, Electrum, GreenAddress, Infinito, and Edge.
5. Online Wallets
These wallets are SaaS platforms that allow management of the assets through any device that has Internet access. Online wallets are combined with the capability of desktop wallets and the accessibility of mobile wallets. Since the security keys in online wallets are stored on external servers, they have low security. Examples: BitGo, Coinbase, GreenAddress.
Essential Reasons to Build a Bitcoin Wallet App
Electronic wallets are the basis for making bitcoin transactions. A Bitcoin wallet application is used to store, transfer, and securely receive Bitcoins. Apart from this, Bitcoin wallets also store digital keys to make transactions safe from hackers and fraud. Below are some benefits that the Bitcoin apps offer to both the sender and the receiver.
1. Higher Level of Security
Al the transaction made with wallet applications are signed with a unique digital signature. After a deal is initiated, components cannot be changed. The security protocols integrated into the eWallet application ensure secure and safe transactions between the sender and the receiver.
2. Easy and Fast Payments
Making traditional transactions in a different bank account in the same city or state is easy and simple. However, it usually takes much more time when financial transactions are conducted between international institutes. It takes more than ten business days when a large amount of money is transferred. But with the help of blockchain solutions, it can be done in just several hours.
3. Prevention Against Frauds
Since individual keys are generated every time a new transaction is made, the chances of fraud in bitcoin wallets are nearly impossible. Various secure payment gateways are integrated into the wallet application to keep the hackers out.
For issuing transaction id, you only require a Bitcoin address. In this way, you can stay anonymous while making transactions. The address is generated in the form of a link, and you can generate several addresses for your bitcoin file.
5. No Central regulation
Wallet applications follow a peer-to-peer system, which is like a single node in the individual public network. All the transaction history past payment is also stored in the wallet and can be tracked at any time.
Basic Features of Bitcoin Wallet Application
A user panel and an admin panel; are the two panels that have their own set of unique features and functionality. They make app usage easy for both the user and the customer. The basic features that should be included in the application to make it win the market are:
User Panel Features
Requesting a Deal
Admin Panel Features
Advertisement and Membership Management
Content Management and Analysis
Manage Pin Reset Request
Manage Withdraw Request
Apart from these basic features, some add-ons or additional features will make your app more flexible for the users.
Advanced features of Bitcoin Wallet Application
Installation of two-factor Authentication of the bitcoin wallet application will improve the security standards of the app. This authentication works as a secondary level of security to keep it the same from hackers and cyber-attacks. With two-factor authentication enabled, users need to enter an OTP to grant access.
Auto-Cancellation of Twice Payments
If the user makes payment twice, this feature automatically detects the duplicate request and cancels it. Users are always conscious of the payments, and this feature is one of the most popular features of the bitcoin wallet app.
Security is one of the major reasons why bitcoin and eWallet apps are popular. Apart from the features mentioned above, you can also integrate an optional logout feature in the wallet application. This feature is useful in case if the user's smartphone is lost or stolen. Through the optional logout, the user can auto-log out from the wallet application to keep the data in the app safe.
Technology Stack for Bitcoin Wallet App Development
SMS, Phone and Voice Verification: Nexmo
Cloud Environment: AWS, Azure, Google Cloud, and Salesforce
Data Management: Datastax
Real-Time Analytics: Big Data, Hadoop, Apache, and Spark
Payment: PayPal, Stripe, PayUMoney, and Braintree
Database: MongoDB, HBase, MailChimp, and Cassandra
Push Notifications: Twilio, Urban Airship, Amazon SNS, and Push.IO
Email management: Mandrill
QR-Code Scanning: ZBar Code Reader
Team Required for Developing a Bitcoin Wallet App
Apart from outsourcing a Bitcoin wallet app development company, you will also need a team of professional key persons developing the application from scratch.
Cost of Bitcoin Wallet Application Development
Talking about bitcoin wallet app development cost, it is impossible to calculate the exact estimation of developing a mobile application. Various factors will affect the cost of wallet application development. This is not the case with wallet applications only; a similar scenario is also with other apps. Below are some factors that will affect the development cost:
1. App Development Team
A single developer or designer will not be working on your project. There will be multiple developers, designers, project managers, testers, etc. that will be working on your application development. The rate of designers and developers varies according to their experience. The bigger the development team, the higher will be the cost.
2. App Size
The application's size or complexity depends on the features and functions that you will be integrating into your application. A basic bitcoin wallet application requires less time and effort, so the cost of development is less. On the other hand, a heavy application will be requiring some extra effort and time, so that the development cost will be high.
3. App Design
For increasing user engagement and attracting customers, app design plays an important role. If you want to win the market with your application, you need to focus on integrating simple yet attractive UX/UI in your application. The more complex the app design gets the development cost increases.
4. App Development Platform
This is one of the most crucial factors that will affect the cost of bitcoin or eWallet app development. The cost for developing a wallet application for the iOS platform is usually more than the app being developed for the Android platform. However, if you want an application that can run on both platforms, you should go with cross-platform application development. A cross-platform application development usually costs less than native platform application development.
Considering above mentioned features, developing a complex bitcoin wallet application will cost you around $15,00,000. A mid-sized app with some basic and extra features will cost around $2,00,000, and a basic bitcoin wallet application will cost around $25000.
After reading this blog, you probably got some ideas about how you can develop a seamless and robust bitcoin wallet application with some basic and most advanced features. There are various bitcoin wallet application developments in the market, but you should hire one that best suits your requirements and budgets.