Find out what Electrum is - a popular cryptocurrency wallet. Find out about its advantages and how Electrum works.
What is Electrum?
Elektrum is a cryptocurrency wallet, available in desktop and mobile versions. The tool was created in 2011 by Thomas Voegtlin. Electrum is called a light wallet, thanks to which its use does not require downloading an extensive data chain - for this purpose the tool uses information collected on a remote server.
What currencies does Electrum support?
Initially, the wallet only supported Bitcoin, but now versions for Bitcoin Cash, Litecoin, Bitcoin SC and DASH have also been developed based on the open source code. The basis is a standard wallet with one key verification, which fulfills basic functions and is intended for most users. The second solution is a multisig wallet. Due to the greater number of authentication keys, it provides greater security. The third wallet is an extended version of multisig, or 2FA. Another type are wallets imported with private keys, such as bitcoin paper wallets. The last group includes the so-called preview wallets, intended for viewing address balances and transactions. They do not have private keys and cannot be used to withdraw cryptocurrency.
What advantages and disadvantages does Electrum have?
The advantages of Electrum include the speed of its operation, simplicity of use, and low use of resources. This tool uses remote servers that can perform the most complex tasks and allows you to easily restore your wallet with a password. Electrum is also a very safe system, providing users with full control over their funds. The rotation of the addresses used makes it difficult to track transactions, and thanks to the two-step verification, it is impossible to make payments by third parties. You must be signed in to multiple devices to verify the identity of the wallet owner.
Electrum is also a deterministic wallet where private keys are based on a 128-bit base value. For users, this means no need for regular backups. The disadvantages of Electrum include the inability to generate nested SegWit addresses due to the lack of compatibility with all services.
How to use Electrum?
Get started with your own Electrum wallet. After the first launch, you can connect to a personally selected server, or you can order it automatically. The next step is to enter the name of the new wallet and select the "create a new seed" option. In the standard version, a Legacy address will be generated, which starts with the number 1. The obtained seed is necessary to recover the wallet in case of loss of access to its backup. At the next stage, enter it and enter the selected encryption password. From the wallet created in this way, you can now send and receive bitcoins - the visible window shows the balance and the list of transactions. The wallet address can be seen in the "Receive" tab. Sending bitocin is very simple and consists in entering the recipient's address in the "Pay to" field and entering the amount.