Unlike a regular traditional wallet used to store the crypto currency assets, a hardware wallet such as the Ledger 比特币钱包 basically does not contain the crypto currency asset, but the public and the private key, which you are required to use so that you can be able to gain an access to your account with all of your crypto currency assets.
For example, if by any chance you are dealing in bitcoin or bitcoin cash crypto currency assets, then your coins will still be stored on a block chain, and not in an actual wallet. Whereas, your access keys such as the public key; that is the digital code, is typically connected publicly to the bitcoin crypto currency that you own, the private key; that is the secure digital code, which most certainly links you with tour public key, will be stored in your crypto currency hardware wallet.
Therefore, you are very much capable of using your wallet to receive and send bitcoins, while at the same time also maintaining a personal ledger of transactions. The hardware wallets that are usually used for the sole purpose of stringing the crypto currency assets usually work in a similar manner as the safe box for all of your crypto currency assets.
This practically means that the only manner in which you will be able to gain access to your account which has all of your crypto currency assets will most probably be through the private and the public key that are basically stored on your hardware wallet.
Upon setting up the device, you will most certainly be required to have to set a pin that you will require to gain access to your hardware wallet. As soon as you have initiated the hardware wallet, it practically generates a twenty-four word passphrase or seed that you are very much capable of using so that you can retrieve your fund in case your hardware wallet is either stolen or damaged.
Controversies
It is very much essential for you to note that just because the device is basically referred to as a crypto currency hardware wallet does not generally mean that it is completely secure. You may probably be aware of the Bitifi bounty that was typically offered by a man by the name of John McAfee to any individual who was able to hack into the world’s first hardware wallet that was pretty much impossible for anyone to hack into.
Whenever a group of hackers actually gain access to the Bitfi wallet through a process known as back dooring the hardware wallet device basically sends the user’s seed and the recovery phase to a certain remote server, therefore, effectively placing any funds that are connected with that wallet form experiencing any particular risk. John McAfee took to debating regarding the very definition of the term hacking.
Similarly, lack of knowledge concerning the crypto currency hardware wallets make the unsuspecting users phone to being hoodwinked by the schemers.
