Mobile Wallets

A presentation of native mobile wallets' features and their solutions for the Polkadot ecosystem.

What are Mobile Wallets?

Mobile wallets are a special kind of mobile apps that allow cryptocurrency users to onboard blockchain networks in very few steps. They are used to create accounts, store different types of assets, connect to ecosystem dapps, and sign transactions. Mobile wallets can be downloaded from popular app stores on Android and iOS phones.

Mobile wallets do not need to collect any personal information from cryptocurrency users because they operate on decentralised networks.

Although they have similar use cases, mobile wallets and digital wallets are strictly different in nature. Most digital wallets (i.e Paypal, Venmo, Cash App, etc.) provide an interface to access and use payment information that is linked to an identifiable party (i.e a person's identity, a charity's bank account, a seller's email address, etc.) during transactions. Meanwhile, mobile wallets support decentralised payment systems in which cryptocurrency users do not need to submit their identities or locations.

How do Mobile Wallets Work?

There are two categories of mobile wallets available to Polkadot ecosystem users. There are generic multi-coins mobile wallets that can be used to store, send, and receive DOT and KSM, alongside other cryptocurrencies like BTC, ETH, XMR, etc. The issue with these mobile wallets is that they cannot always be used to interact with ecosystem dapps. There is a growing number of native mobile wallets that are custom-made for the Polkadot ecosystem. They support parachains assets so that users can operate seamlessly across networks.

In practice, mobile wallets have a lot to offer compared to browser extension wallets, because they can be used on the go and also because they integrate new protocols at a much faster pace. You can always import your existing browser extension wallet account into your mobile wallet for convenience. However, if you choose to create a new mobile wallet account, you must remember to back up your seed/secret phrase for recovery. That way, if you forget your password or PIN code, you will have the option to uninstall the mobile wallet app and re-start the setups with your backups.

Why are Mobile Wallets Important?

Blockchain technologies have quickly risen in popularity over the past couple of years, with assets like NFTs and DAO tokens reaching very high valuations in a short time. Unfortunately, there is also a growing number of scams, phishing schemes, and exploits that are looking to defraud newcomers. As a precaution, you should always check that the app displayed in the store is the official software published by the project team before you download it.

Since mobile wallets' functionalities involve Private keys generation, encryption, and storage, it is essential that these actions are completed in the most secure environments possible. Good mobile wallets are those that provide information about security audits' outcomes to end-users, so that they can make informed choices when managing their assets.