How to Create a Cryptocurrency Hardware Wallet like Ledger? – Merehead

Developing a hardware wallet like Ledger is quite a complicated summons that requires a multifunctional cryptocurrency platform that will have the stick to modules.

User interface

It is the frontend part of the hardware crypto wallet that responds to interaction with end-users. They will use it to authorize and set the wallet, buy, accept, and send cryptocurrency assets to other users. The front end of the Ledger wallets has a mobile, desktop, and network interface ; you launch your wallet and develop these interfaces and applications .
The mobile Ledger Live interface
The mobile Ledger Live interface. Source

Hardware security module (HSM)

As mentioned above, HSM is a physical super secure device that protects unauthorized access where the authentication information is stored ( for example, the private keys ). HSMs can be connected to your computer or smartphone via USB or radio receiver protocols like Bluetooth or Wi-Fi. Most HSM can do the completed code using the private keys. Hence the secret keys never leave the HSM .
A brief and simplified description of how hardware security modules function
A abbreviated and simplified description of how hardware security modules affair. Source
To develop your hardware wallet, you will need to have an HSM. It can be created from scratch, or you might order a template option as a USB drive from the suppliers. For example, Utimaco, Gemalto, Microsoft, Amazon, Thales, and IBM offer cloud HSMs perfect for hardware wallet development like Ledger Nano S.
To develop your hardware wallet, you will need to have an HSM. It can be created from scribble, or you might order a template choice as a USB drive from the suppliers. For exercise, Utimaco, Gemalto, Microsoft, Amazon, Thales, and IBM offer cloud HSMs perfective for hardware wallet development like Ledger Nano S. besides, you will need to understand that you need an HSM that is compatible with the external standards, like Common Criteria or FIPS 140. This security proves that HSM passed the security tests done by qualify professionals. Hence, it is secure and reliable. furthermore, as your hardware wallet will be used for fiscal payments, it would be adept if HSM will meet the HSM requirements defined by the Payment Card Industry Security Standards Council.

The server part of the product

When developing the project ’ randomness computer architecture, this part should be given maximal care because Backend processes memory, protect data for the smooth operation of the wallet. It is the ‘ heart ’ of your arrangement. Developing the waiter depart on local private servers makes it potential, but Microsoft, Google, and Amazon cloud solutions are much better, straightforward, firm, and cheaper .
ossible backend architecture for a cryptocurrency wallet
potential backend computer architecture for a cryptocurrency wallet. Source

Main and additional platform functions

Authorization. For hardware, the crypto wallets adjustment summons means creating an bill and connecting it to the existing cryptocurrency accounts. It besides means the initial set of the wallet : initiation, connecting it to the calculator, creating a PIN code, recording the seed phrase, etc. Next, the authority will go according to a simpleton scenario ( connecting the wallet + entering a PIN code ) .
Enhanced security. The future thing you will need to focus on to develop your cryptocurrency wallet like Ledger is the users ’ data and fiscal protection. It is crucial for networks like Bitcoin or Ethereum where it is impossible to cancel a wrong or an unauthorized transaction. Hence, the users will doubtfully have an opportunity to receive their money back if it was stolen or sent to the wrong address .
Here are a few pieces of advice that will help you protect your clients’ money.

  • PIN code. The users will enter it each time they sign in to approve a payment or introduce changes to a hardware wallet.
  • Two-step authentication. It is an additional level of confirmation via email, SMS, Google Authenticator, or its analogs.
  • Seed phrase, or mnemonic code. It is a phrase of 12 or 24 words that are randomly generated during the registration. It will help to renew access to the account if it was stolen or if the passwords and keys were lost.
  • Automatic logout. The implementation of a lifetime management function to track user activity and automatic logout of the account when the wallet is idle for 5 or 10 minutes. It is also possible to implement automatic logout if the user performs atypical actions and fails to confirm the transaction with a unique payment password (if available).
  • Checking the IP during important actions. This mechanism of wallet protection records the IP the user uses to log in to the wallet. Furthermore, it compares current IP with those in the list of allowed ones. If someone logs in from an alien IP, the user will not log in until they add the new IP to the list.
  • Multisignature. This function enhances the security level of your service. It allows several users to sign one address by a public key. If someone wants to spend the tokes from the wallet, they will need two or more signatures to make the payment.

Exchange rate, conversion coefficient. As the users of your hardware wallet will buy and sell Bitcoin, Ethereum, and another token, they will need to know the exchange rate. Furthermore, they will need to see the conversion coefficient, including the fees and other service expenses.
As the users of your hardware wallet will buy and sell Bitcoin, Ethereum, and another nominal, they will need to know the exchange rate. Furthermore, they will need to see the conversion coefficient, including the fees and early service expenses. Managing the crypto assets (balance). This is a core officiate of any crypto wallet since it helps to buy and sell tokens. here is the list of the essential things :

  • Viewing the balance, transaction history, contra gents list.
  • Buying and selling crypto assets according to the current market rate by using PayPal, bank cards, and other payment instruments.
  • Sending and receiving money.

Administration panel. Here, your employees will trace the system’s condition, manage the users, connect, disconnect the payment nodes, manage the monetization, solve the issues, etc.
here, your employees will trace the system ’ s condition, manage the users, connect, disconnect the payment nodes, manage the monetization, solve the issues, etc. Additional functions. If you want your hardware crypto wallet to be democratic, you need to make it stand out from the competitors. You can do it by adding extra functions, for example :

  • Lightning transaction. Fast and cheap payments;
  • Several interface languages. It will boost the audience coverage;
  • E-commerce website integrations. Purchasing goods and services for tokens;
  • QR codes for fast transactions. It enhances the user experience;
  • Favorite cryptocurrency addresses. It makes repeated transactions faster;
  • NFC support is one of the main trends in the cryptocurrency world;
  • It will share important information with the clients.

The architecture and the technology stack of a cryptocurrency wallet

Architecture. You can see a system architecture of a hardware wallet for cryptocurrencies below. It focuses on the maximum security level for the money and user’s data.
You can see a organization computer architecture of a hardware wallet for cryptocurrencies below. It focuses on the utmost security flush for the money and user ’ second data.

The system architecture of a secure hardware wallet The arrangement architecture of a plug hardware wallet. Source Technology stack:

  • Blockchain: Ethereum, Binance Smart Chain.
  • Token standard: ERC721, ERC1155, BEP-721, BEP-1155.
  • Smart contracts: Ethereum Virtual Machine, BSC Virtual Machine.
  • Programming languages: PHP, JAVA, MEAN Stack, Laravel.
  • Website development: PHP-Laravel / Codeigniter.
  • MEAN: MongoDB, Express JS, Angular js, Node js.
  • Android: Java, Kotlin, Node JS, ROR, Laravel.
  • IOS: Swift, Node JS, ROR, Laravel, ткань IOS.
  • Cloud: AWS, Google Cloud Platform, MS Azure.
  • Push-notifications: Twilio, Amazon SNS, MAP.
  • Database: MySQL, MongoDB, Redis.
  • Other: RSpec, Phantom JS, PUMA server.

Cryptocurrency wallet development process

Creating the software for a hardware wallet like Ledger can be done only by custom development. Since only this way can one reach the required level of security and reliability of the system. It is crucial to develop software with open source code (a cryptocurrency market standard). If the code has security gaps, then any hacker will get access to your wallet.
Creating the software for a hardware wallet like Ledger can be done entirely by custom-made development. Since only this way can one reach the compulsory level of security system and dependability of the system. It is all-important to develop software with open beginning code ( a cryptocurrency market standard ). If the code has security gaps, then any hacker will get access to your wallet .

Related Posts