With the release of Flamingo Finance, some O3 users have experienced issues when using their Ledger hardware wallet to connect to the service. We will take a closer look at some of the causes of common errors such as ‘transaction too big for Ledger to sign’ or ‘there was an error signing this transaction on Ledger…’.
In this article we are going to analyze and distinguish between a light wallet and a hardware wallet, specifically comparing their advantages and disadvantages. The goal is to help users understand why hardware wallets such as Ledger are not always suitable for financial use.
In the world of blockchain, a cryptocurrency wallet is a tool to help users manage their on-chain assets. While it may be difficult to visualize, digital assets are actually kept on-chain. They are not stored in the hardware wallet itself. With a non-custodial wallet like O3, attackers cannot steal your assets without knowing the private key. Your assets and your private key are controlled by yourself and by yourself only, which means you are responsible for managing your assets and storing your key in a safe place. If done properly, your assets cannot be accessed by anyone else including coporations, hackers, and governments. Not even the O3 team has any means of accessing or controlling your funds.
Security is often cited as a point of comparison between hardware wallet and light wallet or software wallet. With the recent growth of cryptocurrency industry, the average consumer’s needs are expanding far beyond the functionality a cold storage can provide, especially with the launch of several DeFi projects. Many modern cryptocurrency transactions are based on resource-intensive functions such as staking, wrapping & unwrapping cross-chain assets, atomic swaps, and multi-device transitions and compatibility. This is where the Ledger hardware wallet falls short. Ledger wallet inherently lacks the UTXO and internal memory that is often required for these types of advanced functionality. This is why O3 Wallet, equipped with the aforementioned technologies, has become the ideal DeFi gateway and companion for Ledger users.
Light Wallet ‘Light’ refers to a light node, which is easy to maintain and run because it only downloads the block headers to validate the authenticity of the transactions, not the complete blockchain. The reason we always remind users to backup the Private key, Encrypted key and JSON file is that these elements are necessary for entering their wallets to make transactions. You’re the only one who has access to your private key and, if you keep it safe, complete wallet security can be achieved. O3 wallet is one of the light wallets that support mobile and desktop devices with user-friendly design. It’s your ideal companion for navigating the crypto world. There are three ways to import an existing wallet in O3:
- Via Private key
- Via Encrypted key + Passphrase
- Via JSON file + Passphrase
Pros of using light wallet
- Convenient and easy to use
- Does not require physical media
- Ability to work with multiple cryptocurrencies
- Anonymity. Verification is not necessary
- Offers additional features such as QR Code scanning and watch address
- Connects to dApps
Cons of using light wallet
- Cannot be used offline
One very IMPORTANT thing while using a light wallet is to back up your private keys. O3 requires you to store your Private key in a safe place. We recommend you to write it down. The most common and easy way is to write your Private key on a piece of paper, pay attention to case-sensitivity, and store it safely in a place where only you have access to. Note: If you lose your Private key, O3 can’t help you recover your wallet.
Hardware Wallet Different from a light wallet, hardware wallet such as Ledger Nano S is simply a hardware device for securely storing Private keys. It is isolated from the internet. When viewing a wallet and making transactions, the hardware wallet must be used in conjunction with a software wallet.
Pros of using hardware wallet
- The hardware is immune to computer viruses
Cons of using hardware wallet
- Cannot be used independently, and not charge for free
- Much more of a task to store cryptocurrencies on a hardware wallet
- Highly inconvenient for trading purposes
- Limited memory capacity
According to the comparison and analysis above, we hope users have a better understanding of the pros and cons of light wallet and hardware wallet, and choose the wallet that is best suitable for your needs.
In order to overcome the limitations of Ledger memory capacity, we have two solutions to help users combine the number of UTXOs (unspent transaction outputs).
Solution 1: O3 have released a UTXO manager to assist Ledger hardware wallet users when they met ‘Transaction too big for Ledger to sign’ or ‘there was an error signing this transaction on Ledger…’.
Solution 2: For Ledger users who use cross chain Wrapper in Flamingo, if your cross chain transaction were stuck and received a warning ‘too large to sign’, please follow the below steps:
- Keep your MetaMask wallet connected with Flamingo Wrapper.
- Create a new address on O3 Wallet desktop, and send at least 0.1 GAS to the new address.
- Connect the new address to Wrapper.
- Restore the minimized Pending status bar, click on ‘Confirm’ to complete your transaction.
That wraps up our discussion today. Thank you for reading. To receive the latest O3 news or provide feedbacks, please join our Telegram group: O3 Community .
Hey, I was really curious to check out the UTXO Manager but the link is broken :-( Can you share with me a valid one? Thanks!
Great comparison overview of hardware and software wallets 👍