Heard people talking about MetaMask but don’t really know what it is? In this blog we will simply define and explain it.
A Simple Explanation Of Metamask
MetaMask is a cryptocurrency wallet exclusive to the Ethereum blockchain. The wallet allows users to store Ether and other ERC-20 tokens (for smart contracts). It also gives them access to the enormous number of decentralized applications (dApps), opening up a vast range of opportunities on the world’s most diverse blockchain.
How Does Metamask Work?
MetaMask is your gateway to everything the Ethereum blockchain has to offer. It is a browser plug-in which can be installed on four leading browsers:
- Chrome
- Firefox
- Brave
- Edge
Once installed, you merely click “Get Started” to create your Ethereum wallet where you can begin storing Ether and other ERC-20 tokens to spend on various dapps.
Features Of The Metamask Wallet
Easy to use – a quick set-up and it’s anonymous meaning you won’t need an email address. Just set up a password and remember and store your secret recovery phrase.
Encryption – Your data is encrypted in your browser and no-one can access it. But don’t lose your secret recovery phrase, because not even MetaMask can help you if you do.
Portability – Your information is stored locally so you can access MetaMask on a different device or browser with your secret recovery phrase.
Trade crypto – start trading Ether and ERC-20 tokens right away. Note that Bitcoin cannot be traded on this wallet.
Growing community – as of March 2022, MetaMask reported 30 million active users, with 20 million of them joining in little more than six months.
What Can You Do With Metamask?
Now you have MetaMask, the world of Ethereum is your oyster. It opens you up to the world of Web3, DeFi (decentralized finance) and NFTs. DeFi is largely the same as traditional financial structures and options, except with all the benefits that blockchain offers – transparency, security and no third parties taking their share of your stake. You can begin trading cryptocurrencies right away. Or you might want to start borrowing or lending money with a DeFi app like Compound which works by depositing your assets into its protocol. If NFTs are your thing, start buying and trading them at your whim. Or if you are looking for some more light-hearted pastimes, you can spend coins in games or betting tokens in gambling applications. PoolTogether is a dApp that pools cryptocurrencies of users to boost their chances of winning a weekly lottery, with the verifiable promise that you “can’t lose”.
Advantages Of Metamask
Popularity – It is widely supported and only needs one plug-in to launch, giving access to a wide range of dApps.
Simplicity – users only need to remember a list of words rather than more complex private keys for access.
Economy – saves space on your hard drive by running off a browser plug-in rather than the need to download the Ethereum blockchain.
Integrated – DApps work in tandem with the MetaMask browser, making it easier to send and receive Ether.
Disadvantages Of Metamask
Security – Because private keys are held within the MetaMask browser, it may not be as secure as a hardware or paper wallet. That is the pay-off for convenience and its ease of use.
Functionality – MetaMask cannot be used to write smart contracts like some alternative wallets.
Wallets Similar To Metamask
MyEtherWallet – an open-source cryptocurrency wallet that can write smart contracts.
Brave Wallet – developed by Brave specifically for their browser, without the need for a plug-in.Coinbase Wallet – a non-custodial wallet where you have control of your private keys, developed by crypto exchange Coinbase.
Metamask By The Numbers
2016 – the year that ConsenSys created the MetaMask wallet
3700 – number of dApps available to use on MetaMask
30,000,000 – number of active users in March 2022
$3.2 billion – valuation of the business in July 2022
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