In this evolving world of technology, the word “smart” is no longer unfamiliar. From smart phones to smart watches to smart “this and that!” We even have smart TVs. These smart devices are tech-modified, and they function in ways that make them clearly distinguished from their archaic versions. When everything is becoming smarter, why not a smart wallet, then? Who wouldn’t embrace the concept of a wallet that has security high measures, management access and other smart benefits?

With the everising growth in crypto and blockchain technology. The emergence of different tokens and smart contracts. A smart contract wallet is your go-to for optimum assets management. It unlocks your access to several digital operations and trades from a single wallet. It further allows you to personalize the management of your assets by setting security measures, and even setting limit on your transactions. Think about this – being able to carry out bundle transactions, payment of gas fee with non-native tokens!

Regardless of your rank in crypto (veteran or amateur), you must definitely possess a token or more. If you have one or more of these tokens, then a smart contract wallet is for you. Why? Not only does it allow you to safeguard your digital funds, it gives you maximum security, as well as the opportunity to manage your assets. Another mindblowing benefit of the smart contract wallet is its versatility. From one account, you can manage different wallets with different currencies without any restrictions. That means all your different tokens can be managed from a single account with a single password.

Smart Contract Wallet – Features

A smart contract wallet is a decentralized application (DApp) built on a blockchain that allows its users to tailor their digital assets management as they please with the aid of smart contract technology. Smart contracts are self-custodial, programmable scripts that automate the rules binding an agreement. This special function gives users a great management access as well as security over the traditional wallets, because smart contracts allows distinctive features such as multisignatory (multisig), management access and customized transaction system.

These unique features of the smart wallet does not only distinguish it from the traditional wallet, but it also offers users management ease and transactional benefits. Some of the features of a smart contract wallet are briefly explained in this below;

Transaction Batching: Smart contract enables batching, this feature allows the collaboration of common operations like token swaps and approvals into a single transaction. It is a cost effective feature that allows users to spend less, while doing more.
On-Chain Accountability: This is a signatory feature that allows for accountability and and proper refrencng. On-chain signature authorization policies and aggregation explicitly define the actual keys, used as as signatory for each transactions and this allows transparency and traceability if the transaction has any glitches.
Decentralized Identity: Smart contracts allows new identity management framework competely dependent on-chain. Thiis functionality lets user reseve total management access of their personal data and its utilization.
Multi-Signature: This feature is a high security benefit that allows user to use more than one key to authorize a transaction.
Compatibility: The flexibility of smart contract makes it possible for wallet developers to spawn a community of elements that users can choose to add their wallets. This characteristic leads to the formation of an app store for new functionalisties like NFT lending frameworks, self-custodial asset management, and DAO voting modules.
Programmable Recovery: Smart contract wallets can offer various recovery choices in case of loss of funds. In cases of loss, users can regain their access by seeking recovery approval from guardians.

Pros and Cons of Smart Contract Wallets

Although smart contract wallets are designed with great features, they also have some security downsides. Given that these digital wallets are built with codes, it is general knowledge that hackers are rampant and there could also be code errors.

Some of the risks that could be encountered with smart contract wallets are:

Design Risk: In a bid to modify features of a wallet, created designs with undefined functionalities in its framework could end up functioning as against the original intention.
Social Risk: The choice of guidance in crypto wallet security is a very crucial one as unworthy guardians could whisk away your funds. Also, users must be careful with the keys they use for their transactions, to prevent hackers from getting a hold of it.
Implementation Risk: Wallet developer’s flaws in the coding system could also lead to glictches in the wallet’s functionalities, such as unapproved transactions, Exceeeding pre-set transaction limits, and so on.

Nevertheless, you could use your smart contract wallet without the fear of these security threats as long as you are careful and apply these guides;

Carefully select your guardians and multisig. Preferably ones who are not familiar with each other, that you trust.
Always be vigilante of ay suspicious transaction attempts.
When DApps are not in use, disconnect them and void token approvals.
Have appropriate and sufficient knowledge of contract modules.
Guard against the leaking of your transation keys.
Whenever you want to access DApps, do it from legitimate sources.

Conclusion

If you are a crypto trader or you newly want to invest in crypto and you intend to deal with large quantity of crypto currencies, smart contract wallets are designed just for you. It allows you to manage your digital assets and carry out several transactions, all from one wallet. And it’s highly structured security systems are reliable as long as you are well aware of its functionality and vigilant of hackers.