Nothing is scarier in the crypto world than the sudden disappearance of a service provider. This is a very volatile world, and events like these have a significant impact. Most discussions in this area are focused on what happens if a centralized exchange (CEX) falls. A lesser discussed situation is when your non-custodial wallet application shuts down.
Your Assets Are Not “In” the App
There is little to fear in this scenario, despite what a lot of people think. Wallet apps are nothing but interfaces that enable you to interact with your wallet on the blockchain. They are not the wallet that holds your assets. They have no custodial role. This means if a non-custodial wallet application (like Trust Wallet, Phantom, or Metamask) shuts down, your funds would remain safe on the blockchain and can be accessed with another app.
The Power of the Seed Phrase
The power of your seed phrase cannot be underestimated in this scenario. As long as you have access to your Seed Phrase (or Recovery Phrase), you will always be able to access your wallet on the blockchain. Most modern wallets follow a standard called BIP-39, which translates your complex private keys into a list of 12 to 24 simple words. So if App A goes down, you can simply download App B and import your wallet with your seed phrase.
The Only Real Risk
In the event that you failed to back up your seed phrase and your wallet application shuts down, you will lose access to that wallet forever.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
