Decentralized Finance Wallet or DeFi Wallet requires a special system design to achieve high security and reliability and gain users’ trust. According to a research, the market cap of the decentralized wallet is projected to reach $21,070 million by the end of the year 2025, and this is why more and more business owners are looking forward to investing in DeFi wallets.
1) Two-Factor Authentication
The implementation of the 2F Authentication into your cryptocurrency DeFi wallet solution will enhance its security. This feature provides an extra layer of security in the app and ensures legitimate user access. It involves generating a temporary, unique one-time code that is only valid for a specific time.
2) Biometric Authentication
Biometric security, such as face and fingerprint recognition, executes authorized transactions by authenticating the user every time a request to transfer cryptocurrency is generated.
3) Multi-signature Support
The multi-sig feature needs more than one user to sign the transaction. The most common arrangement is 2-of-3, which means 2 out of 3 users must sign the transaction in order to execute it. Even if one of the private keys is hacked, the transaction cannot be processed unless the other user with the private key signs the transaction.
4) Optional Sessional Logout
Session logout represents the event occuring when a user does not perform any action on the wallet during an interval (defined in the smart contract). The shorter the session interval is, the lesser the time an attacker has to use the valid session ID. This feature enhances the security of users’ accounts and funds.
DeFi Wallet Could Revolutionize the Financial World
The DeFi sector has witnessed exponential growth, with the total value of digital assets locked up in the tools and protocols standing at over 34 billion. The number of businesses building their own DeFi applications or wallets has grown significantly, serving as a testament to people’s increasing interest in the DeFi market. The increased growth of DeFi solutions will make DeFi services ubiquitous.