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What is an Algorand Wallet? Why do I need one?
What is an Algorand Wallet? Why do I need one?
Max Ball avatar
Written by Max Ball
Updated over a week ago

All Lofty accounts come with a wallet created for them specifically by default. You can use this wallet seamlessly by using our platform. You do not need to know how a wallet works or how to operate one. This article is only for those users who want to use their own "external" wallet.

A wallet is a core component of blockchain/cryptocurrency. Lofty uses the Algorand blockchain to manage the accounting of the fractional ownership of the properties on its platform. Because we run on Algorand, our tokens are stored in Algorand Wallets.

We chose to build on the Algorand blockchain because it offers faster transaction speeds and lower fees than Ethereum, Solana, and other popular blockchains. It was created by Silvio Micali, a leader in the blockchain space and winner of the Turing award for his creation of Zero-Knowledge Proofs.

Each property has it's own token, or Algorand Standard Asset (ASA). Simply put, your ownership is represented by the tokens you hold in your Algorand wallet.

All of your transactions, and the transactions of all investors, are publicly viewable on the blockchain, which you can view here:

A Public Key or Public Address are also terms that are used to describe a wallet. A wallet is composed of two parts: a public address and a private key. A good metaphor for this is a mailbox and a mailbox key. Anyone can drop anything in the mailbox, but only the owner of the private key can open it up and access it. The link between a public and private key is rooted in public-private key cryptography, and is what puts the crypto in cryptocurrency.

In order to receive your purchased tokens of real estate, you will need an Algorand wallet so that the assets can be delivered to you. We recommend the Pera Algorand Wallet, but you may also use a 3rd party external wallet like the Defly Wallet mobile app. You may not use a virtual wallet like Coinbase because it does not let you opt into ASAs (Algorand Standard Assets), which is what Lofty tokens are.

The most important thing to remember about wallets is to make sure to save your private keys. These private keys allow you to access your wallet and if they are lost, you will lose access to your wallet. Make sure to save both digital and physical copies of your private keys just to be safe.

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