XCoinCH supports external wallets to sign transactions for exchanging cryptocurrencies cross chains.
Crypto-wallets include several types: WEB wallet, browser extension wallet, desktop wallet, CLI wallet, and hardware wallet.
Centralized exchanges actually don’t require traders to use crypto-wallets. They hold clients’ funds, manage clients’ accounts in their centralized database.
They match orders, do clearing and settlements on their backend. No crypto address is required to push transactions. So, all the clearing and settlements run in real-time.
Though we enjoy a good experience to trade without delay, when we request withdrawals, the experience would become different. Please refer to my other posts to know more details.
Some DAPPs support WEB wallet, it behaves as a Javascript library on the client-side or runs on the server-side.
If it runs on the client-side, the private keys would be visible to all the programs running on the WEB page, including browser extensions. So it’s not secure.
If it runs on the server-side, the DAPP needs to take the responsibility to protect the private keys for clients and represent the clients to sign transactions.
And, because the DAPPs generate the private keys for clients, theoretically, the sensitive information is easy to leak. Clients need to take moral risks on their own.
Browser extension is a good solution to decouple the processes of trading and signing the corresponding transactions.
You don’t need to install additional software on your desktop, you can run the wallet software on your browser straightforward.
The private keys are invisible to the programs running on the WEB pages. So, it’s more secure than WEB wallet.
Desktop Wallet is another solution to decouple the processes of trading and signing the corresponding transactions.
If the users don’t like browser extensions, they can try this kind of wallet.
It’s more secure than Browser Extension Wallet. The only disadvantage is that we need to install additional software on our desktop. So, it’s not that convenient.
This solution has a tech threshold. There is no UI on the console panel. All the operations need to be done by commands.
It can be integrated with the WEB wallet’s server-side.
It’s the safest solution. But we need to buy extra hardware that is not cheap. And a small device is easy to get lost. So, we don’t recommend this solution as well.
We tend to choose Browser Extension Wallet and Desktop Wallet as our recommended solutions. In our platform, Scatter(EOS-based wallet) and Metamask(Ethereum-based wallet) are applied.