Electrum: An Analysis of a Veteran Bitcoin Wallet

Electrum is one of the oldest online wallets in the crypto space.

What is Electrum?

Electrum is an online wallet for the desktop which specializes in storing Bitcoin. Its compatibility allows it to work with a number of platforms including Windows, Linux, and Mac.

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While at moment, there are close to a thousand cryptos which can be found on the market, this wallet places its focus on Bitcoin storage to make sure that it can be as efficient as possible.

One of the standouts and unique features of Electrum is the fact that it can be integrated with a vast amount of hardware wallet including Ledger Nano S, TREZOR, and KeepKey. As this aspect can be found in the core of Electrum, it can be fully usable with any of these popular hardware wallets.

It is linked to the type of wallets which are referred to as lightweight wallets and is connected to a network of several other external servers which use the data from blockchain.

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History and About

Electrum is one of the older wallets that is part of the crypto sphere. Founded in  2011 by Thomas Voegtlin, the wallet has seen a rise in popularity over the years. Voegtlin’s expertise stems from the fact that he is a computer scientist with years of experience in the industry.

There have also been several notable contributors to the wallet over the years including Michael Wozniak and EagleTM, who have made significant contributions to the code of the wallet. What this means here is that by using the expertise of such individuals the wallet can grow and become more secure than some of its competitors in the crypto world.

Special Features

The wallet this offer some unique traits in comparison to other wallets when it comes to the limits in place for storage. In this sense, there is no limit to storing your Bitcoin, and you’re able to set up a custom gap limit, which can be increased to any number you may wish.

 

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How Safe is Electrum?

Electrum is seen as one of the safest bitcoins wallets which can be found on the market today, primarily because of their complex encryption techniques which can be used to secure your private keys.

It also provides an incredibly secure seed, which is what the phrase used to create private keys is called. In this sense, the level of security provided by Electrum’s seed is on a similar level to the private key which is generated when buying Bitcoin. In that way, you’re effectively doubling down on security.

One has to be sure of how important this seed as it is needed to recover your password in case you were to forget it. In addition to this, the password you create when opening up the Electrum wallet is required to be able to send payments in Bitcoin.

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Does Electrum Have Fees?

Like all Wallets for storing Bitcoins, Electrum does have some fees when it comes to transactions. There is a flat rate of up to 0.2mBTC per transactions, so at certain points, this can even drop down to 0.1mBTC. Electrum is transparent in regards to the fees, and they are clearly shown before you send any transaction.

How to Use Electrum Securely

The first aspect to consider would be to download the Electrum Wallet and go through the installation process which is clearly explained and easy to follow. Once you’ve completed this process, you will be given the seed which will come in the form of a 12-word sequence. To ensure that you have not made any mistakes when it comes to the sequence, you will be prompted to re-enter the sequence you’ve been given.

At this point you will be asked to select a password to provide encryption for your wallet which will offer protection to your wallet should someone gain access to your computer. Once a password has been chosen, the Electrum window will open, and you will be set to go. It can be useful to change the settings to display transactions in Bitcoins rather than Microbitcoins which is particularly helpful for new users with little experience of the coins.

The process of completing transactions is relatively simple where you are simply required to provide your public address or the public address of the individual receiving the coins to be able to send them. The fields are marked in the wallet and are easy to follow.

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