[Series: Crypto Q&A] Part 2/5: Multi-address

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In part I of our series Crypto Q&A, we analyzed the Multi-chain feature to emphasize that it is an essential feature of a crypto wallet: being able to integrate coins/tokens and Dapps of multiple blockchains. However, integrating multiple coins (on multiple chains) into the same wallet application raises major concerns, and technical problems at users will get “lost” in a maze of wallet addresses. There are many answers to this, but for today’s post, we will talk about Multi-address, one of the highly logical features that solve the problem.

What is multi-address?

Each user can own many different coins/tokens. They can also have multiple wallet addresses for a coin/token. This is understandable because when owning a large number of coins, for example, a few dozen BTC, it is very risky to put all the BTC in one wallet address. Once the private key is lost without a back-up, it is impossible to log back into that wallet address [1] because the blockchain is decentralized, there is no intermediary organization reissuing the private key, unlike banks. A multi-address is a collection of wallets to store the same coin. In other words, you have a certain amount of a coin and divided into many different wallet addresses, all of those addresses are a set of multi-addresses.

Why do you need a solution like Multi-address?

Currently, some wallets on the market already have multi-chain functionality, but it is not easy to find a wallet that helps users organize different addresses of the same coin/token. Most multi-chain wallets today are sorting wallet addresses into small wallet files. Each wallet file shows all the coins (multi-chain) but each coin only has one wallet address. This means, if you have more than 1 wallet address for a coin, you have to recreate another file and the screen shows only one file at a time. This arrangement is illustrated as follows:

Wallet file 1 (ETH address 1, BTC address 1, XRP address 1, …)

Wallet file 2 (ETH address 2, BTC address 2, XRP address 2, …)

Wallet file 3 (ETH address 3, BTC address 3, XRP address 3, …)

The above arrangement will help you not mistakenly press the wallet “ETH address 2” into the wallet “ETH address 1” when performing transactions with Dapps, etc. v. However, when owning multiple wallet addresses of the same coin, it is difficult to control or remember which wallet addresses are stored in which files. This leads to a lack of coverage on the amount of assets on the wallet. With Multi-address, the order of wallet addresses will be converted to a single folder for each coin, showing the total balance of that coin even it is when divided into multiple wallets:

[BTC (BTC address 1, BTC address 2, BTC address 3,…); ETH (ETH 1, ETH 2, ETH 3, …); XRP (XRP 1, XRP2, XRP 3,…)]

With this feature, users can both see the total number of coins / tokens they currently own, and visually see how many wallet addresses of each coin there are for easy comparison and selection. In addition, with this feature, when viewing the asset of a coin, users can import an existing wallet or create a new wallet. An intelligent display interface is a powerful tool for investors to easily keep track of their assets, and it can assist in making optimal financial decisions.

However, there is no perfect solution, especially when technology is developing very quickly today. If you notice, we have raised the security issue with private keys and restoring wallets. The next question is, if the private key (the most important “password” of the crypto wallet) is lost with no way to get it back, is the multi-chain and multi-address functionality too risky? Is it risky to put all wallet addresses in one place?

To answer this question, please stay tuned to Part 3/5: Cloud backup – A feature that empowers users to manage data while ensuring decentralization.

 

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