Store Bitcoins on a Custodial Account: Blender Walle Review

The safest way to store cryptocurrencies is with a cold wallet. For example, you can write the keys to your wallet on a flash drive or print them out on paper and put them in a safe.

But if you need to use your wallet every day, then you will get tired of opening the safe and inserting a flash drive to make a transaction. In this case, it is convenient to use non-custodial wallets — for example, Blender Wallet.

What is Blender Wallet?

Blender Wallet is a cryptocurrency wallet with SegWit support, a built-in mixer, and advanced address management. The wallet was developed by the team that created the mixer in 2017 Blender.io.

Blender Wallet interface: on the left — address management, in the middle — balance report

While the wallet can only be used in the browser, but the developers plan to release it on Android.

The main advantages of Blender Wallet:

Non-custodial wallet. This means that the service does not store your private keys. If a hacker breaks into the service and gets access to all the data on the servers, they will not be able to steal your coins.

Built-in mixer. A bitcoin transaction can be tracked in the blockchain, set the sender and recipient, and monitor the movement of the cryptocurrency on their wallets. The mixer obfuscates transactions in such a way that no one can track your bitcoins. For the mixer service, you need to pay 0.5-2% of the transaction amount.

Hierarchically determined wallet (HD-wallet). It allows you to create additional addresses for storing bitcoins and manage them based on a secret phrase, without the need to store backups in files.

Two-factor authentication, mnemonic phrase, and password protection. You can only use a mnemonic phrase to enter, but it is better to include all three elements. In this case, to access the wallet, you need to enter a phrase, password and confirm the login on your smartphone.

Support for SegWit addresses. SegWit technology puts more transactions in the Bitcoin block. For users, this means that transactions are executed faster and you need to pay less commission for them.

Protecting your Blender Wallet

The security of the wallet depends on where the user keeps the private keys. No key — no access to coins.

Custodial online wallets work on the principle of ordinary sites: they keep all the data on their server. The user enters a username and password, and the wallet downloads the corresponding private key from its database. If hackers break into the server of such a wallet, they will get keys and access to users ‘ bitcoins. There is also a risk that hackers will pick up the username and password of a certain user and gain access to his wallet.

Blender Wallet is a non-custodial wallet and does not store user keys. Instead, it has a special program that generates a key from a mnemonic phrase — 24 English words. When entering the wallet, the user enters a mnemonic phrase, and the wallet receives a key from it. When the user closes the Blender Wallet website, the user “forgets” the phrase and the key.

When creating a wallet, Blender Wallet gives the user a random mnemonic phrase. It should be recorded and stored in a safe place. Blender Wallet will check whether the user has saved the phrase: before creating a wallet, it will ask you to enter certain 4 words from the phrase.

You will not register a wallet if you do not write down a mnemonic phrase

In addition to the mnemonic phrase, the login to Blender Wallet can be protected with a password that the user comes up with personally. The password is used as an additional 25th word to the mnemonic phrase, which makes it even more difficult to crack with the help of phrase matching. Before generating the mnemonic phrase and the private key of the new wallet, Blender Wallet requests an optional password. You can refuse the password, but this will worsen the security of the wallet.

An additional password is also needed in order to intentionally divide the login data to the wallet into two parts. The user will most likely write down the mnemonic phrase, and remember the password. If someone gets access to the phrase, they will still not be able to log in to the wallet without a password.

An additional advantage of non-custodial wallets is the ability to restore a wallet based on a mnemonic phrase. If the owner of the wallet loses the ability to use the Blender Wallet, then using the mnemonic phrase will be able to use the secret phrase in any other program of the wallet and regain access to the coins.

Useful features of Blender Wallet

In addition to protecting BTC, Blender Wallet supports the creation of additional addresses and convenient management of them:

labels-you can assign labels to addresses and transactions to make it easier to distinguish them and keep records. You can also use labels to sort and search for addresses and transactions;

unique names for wallets;

sending transactions from specific addresses — the user checks the appropriate addresses so that when sending transactions, the wallet uses only their balances;

address freeze — when sending transactions, the wallet will not use the balances of the frozen addresses.

Keys for additional addresses are generated from the same mnemonic phrase using a hash function. Thus, with a single phrase, the user can manage a large number of addresses.

The Blender Wallet user can export the keys of individual addresses and use them without a mnemonic phrase.

Blender Wallet Restrictions

Since Blender Wallet is free, its team has introduced restrictions to protect against spam:

maximum of 2 empty wallets;

maximum of 20 unused addresses for accepting transactions;

the minimum outgoing transaction is 600 satoshi (0.000006 BTC).

At the same time, the number of addresses and wallets with a non-zero balance is not limited.

If you use a mnemonic phrase from a Blender Wallet in another wallet without hierarchical determination (HD) support, you will only see one address. To access the rest of the addresses, you will need to export their keys from Blender Wallet and import them into a new wallet. However, now there are almost no such wallets left.

In addition, Blender Wallet limits the duration of the session for security reasons: if you log in to the wallet from the browser and collapse the tab, the wallet will automatically end the session after 15 minutes. To continue using the wallet, you need to enter the phrase and password again.Important: Blender Wallet supports logging in to your wallet only with a mnemonic phrase. You can’t import private keys into it.