Although often we manage different ways of managing assets in Ethereum using the single term of “portfolio”, there are large differences in many of the solutions. The aim of this article is to summarize the different ways to store and manage their cryptocurrencies in Ethereum.
What is a portfolio Ethereum?
Technically, there are only two types of ways to manage funds in Ethereum: property accounts for external (ANMS) and contract accounts. Both allow users of Ethereum manage ETH, tokens ERC20 tokens and non-expendable (NFT), at the same time to allow interaction with the network Ethereum.The above describes the technical aspects of the situation, but the reality is that underneath each of these solutions there are several paths that correspond to different approaches in the portfolios. These can be grouped into the following categories:Portfolios EOA of softwareCarteras EOA of hardwareCarteras of contracts intelligent a single firmaCarteras of contracts intelligent multi-firmasCarteras EOA with custody
Portfolios AOD software
Metamask allows you to send and receive ETH and tokens ERC20. Source: metamask.ioHasta date, the majority of the accounts created on the network Ethereum fall into the category of property accounts external.The EOAs are free generation and after its creation it gives the user a public key that can be used to send and receive funds.To retrieve an AOD, it gives users a private key, usually in the form of a phrase, a seed of 12 words. Users should make sure that this phrase is stored securely, as it allows total control over the account. Many portfolios that deal with EOAs allows users to create and manage as many accounts as they want.Pros: Easy to generate, without the risk of códigoContras: You must protect the phrase seed, functions limitadasEjemplos: MetaMask, MyCrypto
Portfolios EOA hardware
The portfolios EOA of hardware also referred to as portfolios cold. Image: BitGenerator / Blog medium.comLas portfolios of hardware are simply accounts of property outside whose private keys are never exposed to the Internet. When a user obtains a portfolio of hardware and creates an account, the keys are generated in a device behind an enclave safe.When the user wants to make a transaction, signing the transaction in the device, and then transmitted to the network. The private keys are never exposed in the process. Although it is a great solution for the cold storage, the portfolios of hardware are not as portable or accessible as an AOD in your browser.Pros: Equal to the EOA, with additional security.Cons: Equal to the EOA, slow to accederEjemplos: Ledger, Trezor
Portfolios of contracts intelligent of a single firm (Singlesig)
Auethereum, portfolio based on a contract, intelligent, does not include fees for transactions. Source: authereum.ethLas EOAs are the portfolios most popular to date, but the portfolios of contracts intelligent are gaining in strength. The portfolios of contracts are similar to the EOAs that also have a public and private key, but are based on a code that allows for a wide range of additional functions that the accounts of the property external can’t offer.Once deployed, it can enable unique features such as a better experience for the user, and gas tariffs in different tokens, recovery options social and much more. A portfolio of contract smart singlesig is one in which a single owner has permission to sign the transaction.Pros: Better gas UX, better recovery options, 2FAContras: Potential risk in code, it can be more expensive than the EOAEjemplos: Argent, Authereum
Portfolios of contracts intelligent multiple signatures (Multisig)
Among the tokens supported by Gnosis Safe are Binance Coin (BNB), Basic Attention Token (BAT), 0x (ZRX), and Maker DAI (DAI). Image: safe.gnosis.ioUna multisig is also a portfolio of contract smart. Can offer the same functions as the previous one, but this requires a minimum number of signatures (whether they are people or devices) to approve the transaction before it takes place. If, for example, you have three main stakeholders in your company, you can set the portfolio to require the approval of the 3 people before it is sent the transaction.This ensures that no individual can commit the funds. A person can also set up a multisig that requires the approval of multiple EOAs or portfolios of contracts intelligent singlesig you may have. See a multisig as a portfolio of contracts, smart with an extra measure of security.Pros: Like the singlesig, enhanced security, management of equipoContras: Like the singlesigEjemplos: Gnosis, the Safe Multisig
Portfolios with custody
The portfolios of custody are another type of AOD, as the portfolios of hardware. However, in this case, they rely on a third party to manage the funds and the keys. Although this goes against the ethic of “If it’s not your keys, not your cryptocurrencies” of the majority of the community, there may be some advantages here for the big holders of cryptocurrencies or companies. The largest of these advantages would be the insurance in case of loss.Pros: Like the EOAs, insurance in case of perdidaContras: Like the EOAs, not having control of their own fondosEjemplo: Coinbase CustodyVersión translated from the article by Eric Conner published in Gnosis.