Phantom Wallet: An Overview

Phantom Wallet: An Overview

July 08, 2024

Overview

Phantom is a Solana-specific crypto wallet allowing users to manage SOL and interact with Solana dApps securely. It supports other blockchains like Ethereum and Polygon but poses phishing risks due to its hot wallet nature.

3 min. read

3 min. read

3 min. read

What is Phantom?

Phantom is a popular cryptocurrency wallet designed specifically for the Solana blockchain. Unlike traditional banks, a crypto wallet gives you complete control over your digital assets. Phantom is a hot wallet, meaning your private keys are stored on your device. This allows for easy access to your funds but also means you are responsible for keeping your wallet secure.

How Does Phantom Work?

Phantom is a Wallet extension that can be used in your local browser, just like Metamask. From there, you can manage your Solana assets, including SOL, the native token of the Solana blockchain. You can connect your Phantom wallet to various decentralized applications (dApps) built on Solana. These dApps can range from decentralized exchanges (DEXs) for swapping tokens to DeFi platforms for lending and borrowing cryptocurrencies.

Phantom Compatibility

Phantom prioritizes Solana-based dApps and tokens. However,  it now supports other blockchains such as Ethereum, Polygon, and Bitcoin.

Advantages and Disadvantages of Phantom

Advantages:

  • Fast and easy to Use: Phantom offers a user-friendly interface, making navigating and managing your Solana assets easy.

  • Solana Integration: Designed specifically for Solana, Phantom provides seamless integration with various Solana dApps.

  • Security: As a non-custodial wallet, you retain complete control over your private keys, enhancing security.

Disadvantages:

  • Hot Wallet Nature: Since Phantom is a hot wallet, your private keys are stored on your device, making them more vulnerable to hacks than cold wallets.

Phishing Risks: Fake sites and extensions can also lead to easily getting access to your Phantom wallet and draining your assets.

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