As cryptocurrencies have become increasingly popular over the years, the concept of smart contracts has also gained significant attention. Smart contracts are essentially self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This code can then be stored and replicated on a blockchain, ensuring that the contract is transparent, immutable, and irreversible.

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Smart contracts are typically executed by a computer program, which makes them faster, cheaper, and more secure than traditional contracts. In the context of cryptocurrencies, smart contracts have enabled the development of smart contract wallets, which are wallets that utilize smart contracts to enable more advanced functionality than traditional wallets.

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In this blog post, we will discuss what smart contract wallets are, how they work, their potential benefits and risks and why Plena Smart wallet should be your go to wallet.

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What Are Smart Contract Wallets?

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A smart contract wallet is a cryptocurrency wallet that utilizes smart contracts to enable additional functionality beyond that of traditional wallets. With a smart contract wallet, the user can program their wallet to automatically perform certain actions based on predefined conditions. For example, a user might program their smart contract wallet to automatically send a certain amount of cryptocurrency to a designated address if the price of that cryptocurrency drops below a certain level.

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Smart contract wallets are typically more complex than traditional wallets, but they offer users more control and flexibility. They allow users to set rules and conditions for their transactions, giving them more control over their funds.

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How Do Smart Contract Wallets Work?

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Smart contract wallets work by utilizing the functionality of smart contracts. The user sets rules and conditions for their transactions by creating a smart contract that defines the conditions for the transaction. Once the conditions are met, the smart contract is executed automatically, without the need for manual intervention.

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Smart contract wallets can be used for a variety of purposes, including:

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▪Automating payments
▪Escrow services
▪Multi-signature wallets
▪Distributed autonomous organizations (DAOs)
▪Decentralized finance (DeFi) applications

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Smart contract wallets typically require a higher degree of technical knowledge than traditional wallets, as users must be able to create and deploy their own smart contracts. However, there are also smart contract wallets available like Plena Smart Wallet that offer pre-built smart contracts for common use cases, making it more accessible to users with 0 technical expertise.

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Benefits of Smart Contract Wallets

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Smart contract wallets offer a number of potential benefits over traditional wallets, including:

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▪Automation: Smart contract wallets can automate transactions based on predefined conditions, saving users time and effort.
▪Increased security: Smart contracts are stored on a blockchain, making them more secure and tamper-proof than traditional contracts.
▪Decentralization: Smart contract wallets can be used for decentralized applications, allowing users to participate in decentralized finance and other blockchain-based services.
▪Transparency: Smart contracts are transparent and publicly accessible, ensuring that all parties can see the terms of the agreement and the execution of the contract.

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Plena Smart Contract Wallet:

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Smart wallets are controlled by blockchain accounts like your Metamask accounts, and all the transactions that are done from your smart wallet needs to be signed by your blockchain account. Plena takes security to the next level by encrypting the keys to the linked blockchain account and storing them on the user’s device. This means that even if someone gains access to the device, they will not be able to access the funds in the wallet without the user’s biometric verification, such as a fingerprint scan or facial recognition. This makes it virtually impossible for anyone to tamper with or access the user’s funds without their permission.

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In addition to enhanced security, Plena Smart Wallet also offers a user-friendly experience. Setting up an account is easy, and users can manage their digital assets with ease. With Plena, users have access to pre-built smart contracts that enable advanced functionality, such as automation of transactions and participation in decentralized finance (DeFi) applications. This eliminates the need for users to have extensive technical knowledge and allows them to take advantage of the benefits of smart contracts without the associated complexity.

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Let’s address some of the questions posed by our valued community below ⬇️

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— Why do you get a new address when you import your Metamask or any other wallet’s seed phrase in the Plena App?

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↪It happens because Plena makes a new smart contract wallet for its users, allowing them to perform any action on blockchain, like swapping, lending, staking and sending crypto with just one tap and without needing to hold the blockchain’s native token

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— Can Plena access your funds?

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↪No, Plena can’t access your funds. You are in 100% control of your funds, and your seed phrase of the Plena App can only be accessed by you and is stored in your device, unlocked by your biometrics

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Conclusion

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Plena Smart Wallet has become the first mobile smart contract wallet to incorporate Account Abstraction technology, making a significant contribution to the evolution of Web3. This move has also paved the way for other wallets to adopt this technology. AA’s benefits, such as seedless logins and social recovery, make dApps and wallets more user-friendly, eliminating the need to manage private keys/seed phrases and hold/pay native chain for gas. With Plena Finance leading the way, we can expect a more accessible and user-friendly Web3 experience, allowing users to unlock advanced functionality through smart contracts.

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