RICE Wallet is a decentralized financial application that allows users to store and manage their digital assets with absolute control and make it easier to access the decentralized financial (DeFi) market. Let’s learn why users don’t need to go through complicated KYC processes when using RICE Wallet.
Some Terms You Should Know First
Private Key: A secret sequence of random digits used to connect to a particular cryptocurrency. Whoever has this key holds control of those assets.
Custodial Wallet: All assets in this wallet, as well as the Private Key, are managed by exchanges or storage companies. Users are only provided with the public key – the address to transfer assets.
Non-Custodial Wallet: A type of decentralized wallet. Only the user has the right to access and use his assets and Private Key in the Non-Custodial wallet.
Store assets in a Custodial wallet
When participating in trading and investing in cryptocurrencies using the Custodial wallet, users will go through the mandatory KYC processes by providing their personal information. This procedure often creates some problems for users:
- Compiling documents is complicated, requiring certain types of identification.
- Image quality is not good enough; you have to manipulate it many times.
- User data is collected and stored, easily leading to personal information security risks.
Storage companies and exchanges using Custodial wallets are ideal targets for hackers because this is a centralized place to store all assets and user information.
Store assets in a Non-Custodial wallet
A Non-Custodial Decentralized Wallet is a software application or hardware device that gives complete control of assets to users. To keep your funds on this wallet safe, users just need to write the Private Key on paper and keep it in a secret place.
It’s also much more easier to start trading and investing with a decentralized wallet, like RICE Wallet, than with a Custodial wallet. The first and only thing that is required of users to use RICE Wallet is not to provide their name, age, address, ID cards,… but to remember and carefully keep your 12 recovery keywords (Seed phrase or Backup Password).
Seed Phrase can be decrypted into Private Keys linked to user assets. Users are encouraged to take screenshots or write them down on paper and keep these 12 recovery keys carefully because these 12 words help protect users’ assets in case of device change or wallet loss. Seed Phrase gives absolute control to the user.
Non-Custodial wallets like RICE cannot access funds stored on them. In fact, RICE cannot know how many tokens users own are stored on the application.