This week, let’s go over different types of crypto wallets going from custodial all the way to MPC non-custodial. Why does this matter at all? When you think about a normal bank account, in a way you’re thinking about a custodial wallet, in terms of how the currency is being held. Once you’ve created an account and deposited the money, you no longer have physical custody over it, you trust that the bank will return your money (and in nearly all instances, they do!) In crypto, when you create a custodial wallet (for example, when holding money in a Coinbase account), the centralized company holds crypto in their own addresses on the blockchain, you just trust they will give it back.*
Exploring wallets: multi-sig, MPC, etc.
Exploring wallets: multi-sig, MPC, etc.
Exploring wallets: multi-sig, MPC, etc.
This week, let’s go over different types of crypto wallets going from custodial all the way to MPC non-custodial. Why does this matter at all? When you think about a normal bank account, in a way you’re thinking about a custodial wallet, in terms of how the currency is being held. Once you’ve created an account and deposited the money, you no longer have physical custody over it, you trust that the bank will return your money (and in nearly all instances, they do!) In crypto, when you create a custodial wallet (for example, when holding money in a Coinbase account), the centralized company holds crypto in their own addresses on the blockchain, you just trust they will give it back.*