Few tips why you should be careful of white label wallets for business

ABCbits

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I'm not sure why it's posted on "Beginners & Help" board when i think most individual beginner isn't looking to buy and enhance/modify white label wallet or white label software. After all, it's costly for individual and usually it's a company who might does that. But on side note, i wonder how many closed-source wallet out there actually is white label wallet.

Quote from: OcTradism on November 20, 2024, 02:46:23 AM

Quote from: Accardo on November 19, 2024, 01:21:40 PM

Though it has its advantages, and new development are coming into the cryptocurrency ecosystem, it's always right to do your own research when choosing a white label wallet provider, for the safety of your business.

It is very misleading because if I don't read the content, I would think of labeling a Bitcoin address or wallet, that is nothing new. Because many years ago, people can label their Bitcoin public addresses, and some third party tools can do on-chain analysis and identify wallets of exchanges as well as Bitcoin institutional investors, and label them.
https://walletexplorer.com/
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

Reading the content, it is like a tool to create a cryptocurrency exchange without too much resource for deployment or development. Honestly I am fearful about it, because like smart contracts, they can be abused. And if people use the same third party tool, abuse when happens, will be massive.

I think you misunderstood what "white label" means. In this context, it means buying wallet software or source code and then modify as needed before published under their own name/brand.

OcTradism

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Quote from: Accardo on November 19, 2024, 01:21:40 PM

Though it has its advantages, and new development are coming into the cryptocurrency ecosystem, it's always right to do your own research when choosing a white label wallet provider, for the safety of your business.

It is very misleading because if I don't read the content, I would think of labeling a Bitcoin address or wallet, that is nothing new. Because many years ago, people can label their Bitcoin public addresses, and some third party tools can do on-chain analysis and identify wallets of exchanges as well as Bitcoin institutional investors, and label them.
https://walletexplorer.com/
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

Reading the content, it is like a tool to create a cryptocurrency exchange without too much resource for deployment or development. Honestly I am fearful about it, because like smart contracts, they can be abused. And if people use the same third party tool, abuse when happens, will be massive.

Faisal2202

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Quote from: Accardo on November 19, 2024, 01:21:40 PM

the features have few customizable choices, and would cost a lot for any business looking to adjust the wallet to fit their needs.

But the website you provided have mentioned that these wallets are highly customizable and flexible, and according to the definition, white label wallets are called white label because some trusted firm will make them and sell it to another business and then other party can customize it to their needs and requirements. This will really cost them but the cost will be lower in compared to building a full functional digital wallets although creating wallets are not that hard but hiring experts and etc. is but with the usage of freelancer the costs can be reduced highly.

Quote from: Accardo on November 19, 2024, 01:21:40 PM

Security Decline: Businesses that use this kind of wallet are at the mercy of the wallet provider for security. Which is not safe for the brand and its users. A security breach on their end could cost the brand financial disputes.

That's right, these businesses are at the mercy of providers but still with proper resources and everything open source to the buyer they can audit the code to see if it's clean.

Quote from: Accardo on November 19, 2024, 01:21:40 PM

Compatibility challenges: incurring a third party built wallet into an existing systems or business site can be a hassle as a result of how the provider built and designed the wallet.

If there purpose is to create a wallet and sell it to others they will surely create it in a way that it will not face such problems, and digital wallets don't face such problems nowadays due to the standards they are built on.

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Quote from: Accardo on November 19, 2024, 01:21:40 PM

Though it has its advantages, and new development are coming into the cryptocurrency ecosystem, it's always right to do your own research when choosing a white label wallet provider, for the safety of your business.

https://rejolut.com/blog/what-is-white-label-crypto-wallet/

As a crypto/Bitcoin enthusiast, I'm always open to new innovations, just like the one you mentioned above to watch out in , and as such it will be wise businesses do their detailed research before integrating this feature into their brand, if not I would have preferred people uses wallets where they own it's private key to execute transactions, whereby despite they pay high fees, they are rest assured of having their Bitcoin safe and secure. Because just as we saw Bitcoin crossed a new "All Time High", we just have to be security conscious of our Bitcoin, as these are the times hackers monitor and look for loopholes to hack crypto projects.

Accardo

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White label wallet's existence is not new, but in recent write ups it'll be hot by 2025. As lots of crypto niched businesses would want it integrated in their brand. However, there are pre-built wallets that'll cost little amount to own, but few challenges could emerge for firms that choose to use such wallets.

Increased costs for future changes: Unlike the cost effectiveness of building wallets from scratch, White label wallets are not expensive to own, but since it's pre-built, the features have few customizable choices, and would cost a lot for any business looking to adjust the wallet to fit their needs.

Security Decline: Businesses that use this kind of wallet are at the mercy of the wallet provider for security. Which is not safe for the brand and its users. A security breach on their end could cost the brand financial disputes.

Compatibility challenges: incurring a third party built wallet into an existing systems or business site can be a hassle as a result of how the provider built and designed the wallet.

Though it has its advantages, and new development are coming into the cryptocurrency ecosystem, it's always right to do your own research when choosing a white label wallet provider, for the safety of your business.

https://rejolut.com/blog/what-is-white-label-crypto-wallet/

Topic: Few tips why you should be careful of white label wallets for business (Read 45 times)