Blockchain has been at the forefront of attention since 2009’s introduction of Bitcoin. Bitcoin today has a value of over $31,000. Bitcoin is now worth more than $31,000. There have been many other cryptocurrencies which have also made big profits. Stellar, a blockchain-based payment network, was first released in 2014. It has gained popularity for its unique approach and ability to accept cross-border transactions. It is a open-source, blockchain-based database that makes it easier to transact. It makes international payments more secure and affordable by allowing for real-time, secure transfers.

Stellar Lumen (or XLM) is the name for the cryptocurrency that was issued by Stellar.

Jed McCaleb (founder of Stellar) created Stellar in order to make it easy for people to exchange their fiat currency for crypto, and to remove any friction that comes with transferring money across borders. Stellar Development Foundation (a not-for profit organization) aims “to unlock the world’s economic potential by making money fluider, markets more accessible, and people stronger.”

Stellar’s transaction fees are very low at 0.00001 XLM. A low transaction fee attracts more users and lets them keep most of the money they have.

What is a Stellar wallet ?

Stellar’s application component, the stellar wallet, is designed to manage basic functions like account creation, key store, queries, and transaction signing.

Stellar wallets cannot hold digital money, at least not directly, unlike real-world wallets. Stellar wallets enable you to sign, submit and view transactions as well as the Stellar ledger’s current and past states. The ledger holds data, including the offers to buy/sell, accounts and balances of all nodes within a network. Although Wallet stores references and caches of the Stellar database, the actual data is on the blockchain.

The important thing to remember is that Stellar wallet does not hold or store anything. Instead, it is an interface layer or interactive layer on top Stellar. Stellar wallet’s discussion focuses on accessing the network and surfacing data rather than storing any information.

Wallets use client-side deals with the user’s secret key, which gives direct access the user’s accounts. For wallet security, all traffic must be transmitted over TLS-enabled networks. Furthermore, key management is an integral part of security. Before we proceed to creating wallets, we first need to discuss key management in a wallet made of Stellar.

How to manage keys ?

It is essential that any app handles user onboarding. The secret keys that grant access to the user account are controlled by Stellar. This means that it becomes a priority to figure out how to handle keys or how to attach the Stellar account object to a user object.

A very important question may arise in your mind: Who will “own the account?” There are three possible answers:

• The service provider is the owner. They store the secret keys and represent the user’s usage rights. It is a custodial provider.
• The owner of the account is the user. This means that they will be responsible for all transactions and have self-custody. This is a non custodial service.
• You can combine them both with multi-sig. This method preserves non-custodial status and allows for account recovery.

The first and third approaches are both possible, but it is necessary to store the keys securely. It’s easy not to be careful and can lead to disastrous results. Developers have the freedom to select any option that suits their needs. We will be demonstrating how to create a noncustodial service. We aim to guide you to a place that allows users to create, store, access and manage Stellar accounts via an intuitive encryption method.

Read More : https://www.leewayhertz.com/create-stellar-wallet/