Cryptocurrency, which first appeared in its familiar form in 2009, began to create a new ecosystem in which people could transfer money to each other without restrictions. As the cryptocurrency market evolved, other cryptocurrencies using more advanced blockchain technology began to appear. For example, Ethereum, which first appeared in 2015, is a platform that operates on the base of smart contracts. It gave people a breakthrough opportunity not only to transfer money from one account to another but also to create decentralized applications using blockchain development services.
With the growing popularity of cryptocurrencies, many different applications in the field of decentralized finance have appeared. They offer financial services to everyone who has access to the Internet. Cryptocurrency wallets have been developed to make it easier to interact with exchanges, marketplaces, and other DApps. They provide a simpler and better way to manage funds and offer a more secure way to store encryption keys. There are public and private keys. Public keys represent the address of the wallet account where the funds are stored. Private keys are needed to create a digital signature to confirm transactions. You have to be very careful when storing the latter because their loss leads to inaccessibility of funds on the account.
There are many types of crypto-wallets at the moment. There are two kinds of them: hardware and software. They differ in terms of architecture and operating logic. Designed for different types of devices, they allow you to access your finances from anywhere.
MetaMask has reached the status of DeFi’s most widely used wallet. The number of monthly active MetaMask users in 2022 is more than 21 million, which is 38 times higher than in 2020. Its major success has greatly impacted the world of technology focused on decentralized finance. Therefore, it is important for anyone interested in the world of cryptocurrencies to understand the tools that allow one to manage their funds.
In this article, we are going to answer the main question: what is MetaMask? We will also figure out how to use it, as well as consider the main advantages and disadvantages of this software cryptocurrency wallet.
First of all, MetaMask can be visualized as the most ordinary wallet, where we can store our savings. Such a crypto wallet can hold native Ethereum Ether (ETH) cryptocurrency or an interchangeable token based on the ERC-20 standard. For example, the ERC-20 Stablecoin USDT, which has a relatively stable exchange rate that depends on the USD. And if you want, you can use MetaMask Ethereum wallet money to pay for one of the many services provided by thousands of decentralized applications, or to buy the right to own an NFT digital art object, such as your favorite meme.
What is MetaMask this time? It is logical to assume that it is an intermediary. And this is not only about connecting you to decentralized applications. With a built-in browser and a built-in Swap feature, MetaMask helps you access the largest collection of tokens and the best prices collected from various aggregators.
And finally, MetaMask itself is a bank account. With the MetaMask wallet extension or mobile app, it is possible to get a loan or earn money from your savings, just like in a regular non-blockchain bank. However, in contrast to a bank, MetaMask does not require you to provide personal information. Moreover, the developers do not collect users’ private keys and seed phrases. In other words, address owners have full control over their funds. This is what the term “non-custodial” means.
But what is a MetaMask wallet for business? MetaMask Ethereum wallet provides great opportunities for IT professionals and financial institutions. The development team created excellent documentation with detailed instructions to help you integrate the wallet into your application and other blockchain development services with minimal effort. In addition, MetaMask Institutional – DeFi wallet and Web3 gateway for organizations – appeared in the spring of 2021. It allows you to interact with over 17,000 DeFi protocols and applications, manage key storage, facilitate multi-signature transaction approvals, and optimize trade flows by integration with selected qualified custodian or custody provider. MetaMask Ethereum wallet also provides capabilities to monitor and report on Web3 activities with Portfolio Dashboard and view detailed metrics for NFTs held. In addition, this service ensures safe transactions with pseudonymous counterparties with pre- and post-trade KYT risk assessment on smart contract addresses and DeFi pools.
Thus, we have answered the key question: what is MetaMask? However, it is worth answering another important question in order to better understand cryptocurrencies and make the best choice towards the most suitable wallet for you and your business.
From the moment MetaMask appeared in the field of crypto-wallets, a large number of competitors came up. However, so far, none of them has been able to gain the same popularity as MetaMask. Most of the competitors are wallets that have created various decentralized exchanges. Coinbase is an example of such a wallet and the main competitor. The major advantage of MetaMask over Coinbase is that the first one offers the best suggestions collected from various aggregators. For Coinbase, however, this approach is unprofitable because it focuses on its own rates for buying, selling, or exchanging tokens. Other existing or in-progress competitors focus on other blockchains or simply allocate fewer resources to improve their own wallets.
MetaMask has a lot of advantages, which are beneficial to its popularity and play a big role in the choice of users. Undoubtedly, the main advantage for most is the simplicity of getting started with MetaMask. Users do not need to make any effort to install and register in this crypto wallet. It is enough to install the browser extension or mobile application and then follow the clear and simple steps for registration. The concise and minimalistic look of the user interface (UI) provides an intuitive and positive user experience. A nice addition is that there is no need to provide personal data, as you only need to come up with a password to register.
The second advantage is the number of decentralized applications that you can interact with MetaMask. Most DApps have a built-in integration with MetaMask. This enables you to communicate directly with such applications at the click of a button. This feature has a positive effect on both the growth of the user audience and the popularity of the wallet among the developers of decentralized applications. As a result, it creates an attractive environment for businesses.
The next advantage lies in the non-custodial nature of MetaMask. Due to the fact that this wallet does not store private keys and seed phrases, users have full control over their own accounts and the funds stored in them. The data is saved in the browser’s local storage on your computer or mobile app. However, the advantage of having full control over one’s own data shifts the responsibility for keeping it secure to the user.
Storing user data locally on personal devices raises security concerns. Attackers can gain access to the wallet by hacking the browser or stealing the device itself. Fortunately, at the moment there is an effective solution to this problem by combining MetaMask with Ledger or Trezor hardware wallets. This option allows you to maximize the protection of funds and avoid potential risks. The hardware wallet protects data in the real world, and MetaMask protects users from fraudsters online.
Another disadvantage of MetaMask is the possible disruption of the connection to the blockchain network due to working on external nodes. MetaMask does not run on its own node in the blockchain network but rather communicates with third-party nodes over which it does not have full control. This leads to possible slowdowns or program failures if a node fails. However, to this point, there have been no incidents that have led to significant problems.
In order to install the MetaMask extension in your browser, you only need to go to the official website, or you can find the mobile app in your store by the name of the wallet. Then everything happens just like with any other extension or app.
Next, you will be given all the possibilities offered by MetaMask. You will be able to buy, send or exchange your funds, track your assets and transaction history. You can also change the network you are connected to (by default, the Ethereum Mainnet network), for example, to the Ethereum test network. Such a network is a complete copy of the main network, except that all transactions run on Test Ether. Test networks are used by developers to test the performance of smart contracts of their decentralized applications or Ethereum tokens.
Decentralized applications will be able to connect directly to your wallet automatically when you want to use the services they provide by clicking the appropriate buttons on their websites. In the MetaMask window that opens, you will be prompted to enter your password to confirm the connection.
There are a huge number of possible scenarios of MetaMask wallet use, which are difficult to cover in this article. The same applies to the features provided by the MetaMask Institutional wallet. However, the intuitive interface and a large number of explanations on the official website or in search services will help you to master all the functions offered by this wallet.
With the growing popularity of cryptocurrencies, many different applications in the field of decentralized finance have appeared. They offer financial services to everyone who has access to the Internet. Cryptocurrency wallets have been developed to make it easier to interact with exchanges, marketplaces, and other DApps. They provide a simpler and better way to manage funds and offer a more secure way to store encryption keys. There are public and private keys. Public keys represent the address of the wallet account where the funds are stored. Private keys are needed to create a digital signature to confirm transactions. You have to be very careful when storing the latter because their loss leads to inaccessibility of funds on the account.
There are many types of crypto-wallets at the moment. There are two kinds of them: hardware and software. They differ in terms of architecture and operating logic. Designed for different types of devices, they allow you to access your finances from anywhere.
MetaMask has reached the status of DeFi’s most widely used wallet. The number of monthly active MetaMask users in 2022 is more than 21 million, which is 38 times higher than in 2020. Its major success has greatly impacted the world of technology focused on decentralized finance. Therefore, it is important for anyone interested in the world of cryptocurrencies to understand the tools that allow one to manage their funds.
In this article, we are going to answer the main question: what is MetaMask? We will also figure out how to use it, as well as consider the main advantages and disadvantages of this software cryptocurrency wallet.
What is MetaMask’s distinctive feature that makes it the most popular Ethereum wallet?
What is MetaMask?
MetaMask wallet extension was created by ConsenSys Software Inc. in 2016. It is a non-custodial Ethereum crypto-wallet. And as of September 2020, it became available for mobile devices on Android and iOS. MetaMask provides the ability to buy, sell, store and exchange cryptocurrencies, interchangeable ERC-20 and non-interchangeable ERC-721 tokens created on the Ethereum blockchain or other Ethereum Virtual Machine compatible blockchains. The MetaMask Ethereum wallet also allows you to interact with DApps smart contracts at the web application level. You don’t have to worry about a lot of specific terms. We’ll get to the bottom of them all by looking at 4 simple analogies to answer the question: what is MetaMask?First of all, MetaMask can be visualized as the most ordinary wallet, where we can store our savings. Such a crypto wallet can hold native Ethereum Ether (ETH) cryptocurrency or an interchangeable token based on the ERC-20 standard. For example, the ERC-20 Stablecoin USDT, which has a relatively stable exchange rate that depends on the USD. And if you want, you can use MetaMask Ethereum wallet money to pay for one of the many services provided by thousands of decentralized applications, or to buy the right to own an NFT digital art object, such as your favorite meme.
What is MetaMask’s main use? It can store your funds just like a regular wallet.
In addition to the wallet function, the MetaMask wallet extension acts as your ID card. MetaMask creates a public address for you, which is used to identify your account in various DApps. This allows you to use your once-created MetaMask account for exchanging tokens, making purchases on NFT marketplaces and earning tokens inside blockchain games.What is MetaMask this time? It is logical to assume that it is an intermediary. And this is not only about connecting you to decentralized applications. With a built-in browser and a built-in Swap feature, MetaMask helps you access the largest collection of tokens and the best prices collected from various aggregators.
And finally, MetaMask itself is a bank account. With the MetaMask wallet extension or mobile app, it is possible to get a loan or earn money from your savings, just like in a regular non-blockchain bank. However, in contrast to a bank, MetaMask does not require you to provide personal information. Moreover, the developers do not collect users’ private keys and seed phrases. In other words, address owners have full control over their funds. This is what the term “non-custodial” means.
But what is a MetaMask wallet for business? MetaMask Ethereum wallet provides great opportunities for IT professionals and financial institutions. The development team created excellent documentation with detailed instructions to help you integrate the wallet into your application and other blockchain development services with minimal effort. In addition, MetaMask Institutional – DeFi wallet and Web3 gateway for organizations – appeared in the spring of 2021. It allows you to interact with over 17,000 DeFi protocols and applications, manage key storage, facilitate multi-signature transaction approvals, and optimize trade flows by integration with selected qualified custodian or custody provider. MetaMask Ethereum wallet also provides capabilities to monitor and report on Web3 activities with Portfolio Dashboard and view detailed metrics for NFTs held. In addition, this service ensures safe transactions with pseudonymous counterparties with pre- and post-trade KYT risk assessment on smart contract addresses and DeFi pools.
Thus, we have answered the key question: what is MetaMask? However, it is worth answering another important question in order to better understand cryptocurrencies and make the best choice towards the most suitable wallet for you and your business.
Why is it worth using MetaMask?
As we have discussed earlier, ConsenSys has been making its product both for ordinary consumers and crypto-enthusiasts, as well as for big financial companies and IT startups. MetaMask provides a large number of options to meet the needs of consumers. The productive work of the development team to improve MetaMask‘s architecture ensures reliable wallet performance and funds security.From the moment MetaMask appeared in the field of crypto-wallets, a large number of competitors came up. However, so far, none of them has been able to gain the same popularity as MetaMask. Most of the competitors are wallets that have created various decentralized exchanges. Coinbase is an example of such a wallet and the main competitor. The major advantage of MetaMask over Coinbase is that the first one offers the best suggestions collected from various aggregators. For Coinbase, however, this approach is unprofitable because it focuses on its own rates for buying, selling, or exchanging tokens. Other existing or in-progress competitors focus on other blockchains or simply allocate fewer resources to improve their own wallets.
MetaMask has a lot of advantages, which are beneficial to its popularity and play a big role in the choice of users. Undoubtedly, the main advantage for most is the simplicity of getting started with MetaMask. Users do not need to make any effort to install and register in this crypto wallet. It is enough to install the browser extension or mobile application and then follow the clear and simple steps for registration. The concise and minimalistic look of the user interface (UI) provides an intuitive and positive user experience. A nice addition is that there is no need to provide personal data, as you only need to come up with a password to register.
The second advantage is the number of decentralized applications that you can interact with MetaMask. Most DApps have a built-in integration with MetaMask. This enables you to communicate directly with such applications at the click of a button. This feature has a positive effect on both the growth of the user audience and the popularity of the wallet among the developers of decentralized applications. As a result, it creates an attractive environment for businesses.
The next advantage lies in the non-custodial nature of MetaMask. Due to the fact that this wallet does not store private keys and seed phrases, users have full control over their own accounts and the funds stored in them. The data is saved in the browser’s local storage on your computer or mobile app. However, the advantage of having full control over one’s own data shifts the responsibility for keeping it secure to the user.
Storing user data locally on personal devices raises security concerns. Attackers can gain access to the wallet by hacking the browser or stealing the device itself. Fortunately, at the moment there is an effective solution to this problem by combining MetaMask with Ledger or Trezor hardware wallets. This option allows you to maximize the protection of funds and avoid potential risks. The hardware wallet protects data in the real world, and MetaMask protects users from fraudsters online.
Another disadvantage of MetaMask is the possible disruption of the connection to the blockchain network due to working on external nodes. MetaMask does not run on its own node in the blockchain network but rather communicates with third-party nodes over which it does not have full control. This leads to possible slowdowns or program failures if a node fails. However, to this point, there have been no incidents that have led to significant problems.
Brivian has a great experience in providing blockchain development services. If you have any questions about what a MetaMask wallet is and whether it is suitable for your purposes, please contact us. To do this, leave a request either at the end of the article or here.
How to use MetaMask?
As we have mentioned before, MetaMask is quite easy-to-use thanks to its good UX/UI design. Let’s take a closer look at how to use this wallet.In order to install the MetaMask extension in your browser, you only need to go to the official website, or you can find the mobile app in your store by the name of the wallet. Then everything happens just like with any other extension or app.
What is MetaMask? It’s an Ethereum wallet extension for browsers powered by Chromium.
The next step is registration. The first time you open MetaMask on a new device, you will be offered two options: log in to an existing wallet or create a new one. In our case, we will choose to create a new account. Now we need to think up a password through which we can authorize in MetaMask if necessary. The invented password must satisfy the password policy. It is also desirable that the password does not contain personal data or combinations that are easy-to-guess. On the next page, after confirming your password, you will be prompted to watch a video about seed phrases. It says that seed is a master-key to your wallet, and you should keep it as secure as possible and not tell anyone. If you lose the phrases, it will be impossible to restore access to your account. Next, you can see the seed phrases generated and will be asked to put them in order to confirm that you have saved them. And finally, after verification, you will be taken to the main page of your wallet. Congratulations!Next, you will be given all the possibilities offered by MetaMask. You will be able to buy, send or exchange your funds, track your assets and transaction history. You can also change the network you are connected to (by default, the Ethereum Mainnet network), for example, to the Ethereum test network. Such a network is a complete copy of the main network, except that all transactions run on Test Ether. Test networks are used by developers to test the performance of smart contracts of their decentralized applications or Ethereum tokens.
Decentralized applications will be able to connect directly to your wallet automatically when you want to use the services they provide by clicking the appropriate buttons on their websites. In the MetaMask window that opens, you will be prompted to enter your password to confirm the connection.
There are a huge number of possible scenarios of MetaMask wallet use, which are difficult to cover in this article. The same applies to the features provided by the MetaMask Institutional wallet. However, the intuitive interface and a large number of explanations on the official website or in search services will help you to master all the functions offered by this wallet.
These articles related to the topic may also be interesting for you:
1) How to Build a Decentralized App? And Why…
2) What Is a DApp: How Do You Make an App That Nobody Owns and Brings YOU Profit?
3) MetaMask Security: How to Make Your Crypto Assets as Safe as Possible?
Conclusion
This brings us to the end of our discussion about storing your cryptocurrency. We took a detailed look at the types of cryptocurrency wallets and discussed what a MetaMask Ethereum wallet is. We are sure that after reading this article, you are more confident about what MetaMask is, and why it may be a great choice.Brivian is ready to help you with blockchain development. Our team has extensive experience in software development for Ethereum, Binance, and Tron. Besides, we already have experience with implementing MetaMask and other wallets in DApps and projects that are related to the metaverse. We will be happy to assist you with the implementation of your idea and answer any questions you may have.
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