Digital Wallets Overview: Metamask

Digital Wallets Overview: Metamask

July 08, 2024

Overview

MetaMask is a popular crypto wallet and browser extension for managing Ethereum and EVM-compatible blockchain assets securely, supporting dApps and hardware wallets. Users should beware of phishing risks and Ethereum's high transaction fees.

3 min. read

3 min. read

3 min. read

What is Metamask?

Metamask is one of the most trusted cryptocurrency wallets that provide access to blockchain applications. It functions as a browser extension and mobile application, allowing users to manage their digital assets, interact with decentralized applications (dApps), and conduct transactions on EVM blockchains. 

How Does Metamask Work?

Metamask operates by integrating with web browsers like Chrome, Edge, or Firefox, as well as providing a mobile app for on-the-go access. It generates and manages cryptographic keys and wallet addresses, enabling users to store, send, and receive tokens securely. 

When users connect to a dApp, Metamask acts as an intermediary, signing transactions and providing a secure interface for blockchain interactions. It also supports hardware wallet integration (like Ledger) for further security measures.

Metamask Compatibility

Metamask can be used through Ethereum Virtual Machine (EVM)-compatible chains like Arbitrum, Optimism, Binance Smart Chain, Polygon, and Avalanche. However, it does not support Bitcoin. 

Advantages and Disadvantages of Metamask

Advantages:

  • User-Friendly Interface: Metamask’s intuitive design makes it accessible for users of all experience levels.

  • Security Features: It offers secure key management, encryption, and support for hardware wallets.

  • Wide Compatibility: Available on multiple browsers and mobile platforms, ensuring accessibility.

Disadvantages:

  • Phishing Risks: Users must be cautious of phishing attacks and fake extensions.

  • Transaction Fees: Network congestion can lead to high transaction fees on the Ethereum blockchain.

  • Limited Support: Primarily supports Ethereum and Ethereum-based tokens, limiting its use with other blockchains.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024