What is a Wallet?

A wallet is software used to manage a user’s cryptographic keys which control an on-chain address. Self-custody wallets are a core component of web3 by allowing users to manage their own assets. Wallets provide an easy way for a user to interact with web3 applications by providing identification with a public address and executing actions using the corresponding private key.

Common wallet applications on Ethereum include Metamask, Coinbase Wallet, and Rainbow. These are usually present as desktop browser extensions or mobile apps.

It is important to understand that no assets are “inside” your web3 wallet, unlike paper cash in a physical wallet. These assets are tied to a record of ownership which is linked to the wallet’s public address on the blockchain. This means that whoever has access to the cryptographic keys has the ability to transfer or control assets held by that address.