SPV is short for Simplified Payment Verification. A way in which crypto wallets and wallets can work quickly, easily and using few resources. It makes them perfect for being used on smartphones and securely making payments with cryptocurrencies.
Un system that has been present since the invention of Bitcoin is Simplified Payment Verification, Better known as SPV for its acronym in English. This system is implemented in the network for payment verification and executes this process without the need to download all the blockchain. For this reason, in this article we will analyze those wallets that implement this innovative system. We will study their concept, how they work, what their main characteristics are and how we can make use of them.
What are SPV Wallets?
The implementation of the SPV system, It allows verification of a particular transaction within the blockchain without having to download it completely. Rather, it is based on proof of merkle tree where the hash of a transaction and the hash of a specific block. This system only needs a small part of a block to confirm that the operation has been included.
Thus, SPV wallets are those purses that They do not own and do not need a complete copy of the blockchain. If not rather they connect users directly to the cryptocurrency network from the app. In order to carry out the verification process of your own transactions. In some cases, SPV wallets rely on full nodes connected to the network. Being part of the cryptographic verification process to avoid showing the user false information.
It is important to note that an SPV wallet is not based solely on the verification of other nodes in the network, but it also analyzes the best header hash. A valid block has the most cumulative proof of work. The implementation of the SPV ensures that this proof of work has the appropriate level of hashing difficulty. Likewise, SPV wallets have no impact on the security of your private keys.
As a curious fact, light wallets also implement the SPV system allowing a faster synchronization and configuration speed. They require less availability of disk storage.
Characteristics of SPV wallets
- The SPV Wallets do not require downloading the entire blockchain. They can verify payments through a Merkle tree test to confirm a specific transaction.
- Once the proof is verified, confirm the block where the transaction is to make sure it's inside the blockchain.
- After verify these two processes, the transaction will be taken as correct and included in the wallet as income or expense.
- They use a less storage space On the disk.
- The installation, synchronization, and configuration process is much faster compared to full customer wallets.
- SPV technology is safe and reliable allowing to verify transactions quickly.
- SPV purses that are also deterministic, allow the restoration and recovery of funds through the seed.
- They offer higher speed to users and simplicity in configuration.
- You don't have to worry about the security of private keys, as SPV wallets don't store them on their servers or online. They protect them within the same devices that run the application, so they are out of the reach of third parties, as long as the computers and devices are kept protected.
Recommendations for use
- Firstly, wallets must be downloaded from official websites, or from secure sites to avoid fraudulent acts and theft. In the same way you must keep the wallet applications updated.
- Since the wallet will be managed from a computer or smartphone, be sure to keep them free of viruses and malware of any kind. If you operate from an online wallet, you must make sure that your operating system is not compromised.
- When configuring the wallet for the first time, a backup of the generated seed must be made. As we have mentioned, this will allow us to restore the wallet in case of damage or loss of the equipment or device.
- This backup must be done with encryption to ensure that in the event that a third party finds them, they cannot access them. Remember that the owner of the private keys has control over the assets. So there is no need to provide extra protection to our backups.
- If you handle large amounts of money in an online wallet, we recommend implementing an extra layer of security such as 2-factor authentication. Thus, in order to enter it is necessary that you verify your identity.
How much do you know, cryptonuta?
Are VPS users more susceptible to attack?FALSE!
This is practically impossible. While a cybercriminal may come and try to alter the verification of a payment, this is highly unlikely due to the immense mining power it would require in addition to the large number of rogue nodes to make such an attack possible. This would be very costly and would make the attack unfeasible.
Example of some SPV wallets
Many SPV wallets offer this solution for the handling and management of wallets in devices with limited capacity such as smartphones, tablets and common computers. They operate faster, more efficiently, safely, and require less storage space. This type of wallet is the most widely used to make small payments, since they work as if it were a physical wallet. Let us see which are the most popular ones that are available in the market.
electrum.
One of the most popular desktop wallets that the SPV system implements, so you don't need to download the entire blockchain. It offers a fast and secure service for major cryptocurrencies like Bitcoin, Litecoin, and Dash. The wallet Electrum It is also deterministic, since it allows the generation of a seed with which a backup copy of the wallet can be created and restored later in case of damage or loss of the equipment. In addition, it allows the generation of hierarchical and automatic addresses. Electrum can be synchronized with other types of hardware such as Trezor or Ledger.
Bither.
Bitter, It is a computer and smartphone wallet that only supports operations with bitcoins, but it implements the SPV system to verify payments quickly and safely. In addition, it has two great functions, since it allows it to operate as a cold storage wallet without an internet connection. Or as a hot wallet connected to the network to manage and verify operations. Currently, it is compatible with Android, iOS, Mac and Windows operating systems.
BitcoinWallet.
It is an online wallet that offers various options that simplify the transaction process between users. It is very reliable, easy to use, fast and secure, it implements the VPS validation system. Bitcoin Wallet It is fully decentralized, giving users absolute control over funds. In turn, it is open source making it auditable and verifiable at all times. It is also available for smartphones that use the Android system.