What is a crypto wallet?
A crypto wallet is a tool for storing and managing cryptocurrency. Some, like Argent, also let you use blockchain applications (Dapps), so you can interact with decentralized finance and other on-chain services.
Why do wallets matter?
Cryptocurrency exists on a blockchain, and private keys control access to it. A wallet helps you manage these keys. You can let a third party hold them or use a self-custodial wallet, like Argent, to stay in control. The second option gives you full ownership but also more responsibility for security.
What is a smart contract wallet?
Unlike traditional wallets that rely on a single private key, a smart contract wallet operates through programmable code. This enables account abstraction, allowing for features like social recovery, transaction limits, and account freezing. With account abstraction, wallets can function more like user-friendly applications, enabling gas fee payments in different tokens, automation of transactions, and multi-factor authentication. These enhancements improve both security and usability.
Argent wallets on Ethereum and Starknet are smart contract wallets, combining flexibility with built-in safeguards.