In 2008, Bitcoin was introduced to the world. And since then, cryptocurrencies have seen a significant uptake in usage over the years.
Along with Bitcoin’s release was a piece of software that contained a single user-facing application called the crypto wallet. The crypto wallet enabled users to flexibly interact with cryptocurrencies, send them to others and receive them.
They were designed to hold private and public keys and employ blockchain technology to send and receive currency.
Since the main function of a cryptocurrency is money transfer, crypto wallets facilitate such transfers. As a result, crypto wallets are now part and parcel of the cryptocurrency space.
What is MetaMask?
MetaMask is a state-of-the-art Ethereum based Chrome extension that allows users to utilize their web browser to communicate with the Ethereum blockchain. As a digital wallet, MetaMask extension accepts a wide range of digital currencies that are based on the Ethereum blockchain and ERC20 protocol.
The MetaMask wallet provides access to decentralized applications based on Ethereum Blockchain. Its user interface provides access to various options like sending, monitoring and receiving transactions in a simplified manner.
MetaMask comes with a separate mobile app for those who don’t want to use the Chrome extension.
Advantages of MetaMask
- It is open-source.
- Private keys are kept on the browser.
- It has reliable customer support.
- It maintains a simple and user-friendly interface.
- It uses hierarchical deterministic settings that assist users to back up their accounts.
- It is integrated with ShapeShift and Coinbase exchanges, which make it easy to exchange ETH and other ERC-20 tokens.
- It is compatible with other dApps like Cryptokitties, Datawallet, EtherDelta, Augur, etc.
Disadvantages of MetaMask
- It only supports Ethereum and ERC-20 tokens.
- Its gas prices fluctuate frequently (gas is the computational power needed for transactions like the purchase and sale of tokens from an exchange). Sometimes, the rise in the transaction volume typically leads to gas prices increasing.
- It sometimes incurs a significant time lag when syncing the Blockchain. This time lag can sometimes lead to higher transaction fees in case of price fluctuations.
MetaMask safety and security
MetaMask Wallet was created to introduce Ethereum to a wider range of users and to ensure more security when receiving and sending digital currencies.
So is Metamask safe?
Yes, despite being a digital wallet based on browser plugins, MetaMask extension boasts robust security.
Though it can’t be compared with hardware wallets, no hacking has been reported on the MetaMask wallet thus far.
This is because all keys and information are stored in the user’s browser. Furthermore, the browser isn’t allowed to access and collect MetaMask information. While there are various MetaMask alternatives available, in theory, its security is 100% flawless and one of the most reliable options available.
Additionally, MetaMask’s security levels are set hierarchically (leverages HD backup settings). As a result, no third-party app or program can detect the number of digital assets that have been exchanged, or held in users’ wallets.
Despite not using 2-factor authentication, MetaMask extension employs a mechanism that demands that users maintain a 12-character unlock code. Users should always keep this special code in a safe place to avoid losing access to their wallets.
To complement their security features, the development and support team at Metamask work continually to enhance its security. A clear testament to this is the fact that thus far, no reports of fraud, hacks or scams have been reported by Metamask. MetaMask also maintains a strong community of developers who continually update its open-source code.
The most common security risk that could affect MetaMask wallet users is phishing attacks. These attacks involve scam hackers stealing personal information like usernames and passwords from unsuspecting users. Currently, MetaMask is working on specialized patches to avert this.
While users are solely responsible for the safety of their passwords and data, they are also given a 12-word Secret Recovery Phrase whenever they create a MetaMask wallet.
However, MetaMask doesn’t control users’ personal or private data on their servers. Everything is encrypted in the user’s browser and protected via their MetaMask password. So, whenever a user loses their MetaMask account and needs to restore MetaMask, they can only do that with their Secret Recovery Phrase. MetaMask logins are strictly monitored and considered one of the most secure platforms.
Takeaways
Cryptocurrencies were initially built to blend the features of physical (fiat) money into existing forms of electronic payments.
Generally, the utilization of cryptography in crypto payments ensures protection from theft or fraud. Remember, despite cryptocurrencies requiring mediation, the responsibility of validating transactions lies with the entire user network.
That being said, the MetaMask decentralized wallet is one of the safest Ethereum blockchain-based wallets, as no adverse reports of hacks have been uncovered since its inception.
Essentially, if users choose to set up strong passwords, their private keys cannot be hacked. Furthermore, MetaMask is safe for use on public and private Wi-Fi since no third party can access one’s funds because of the encrypted connection.
Read our comprehensive series on “Metamask” for more information.
