The Solana blockchain is one of the hottest new networks and it competes with Ethereum. All major networks require a safe and reliable wallet to boost adoption. In Solana’s case, that is Phantom wallet.
Used for swapping tokens directly from the wallet’s interface, the Phantom wallet also allows users to stake SOL and hold Solana NFTs. Here’s everything you need to know about Phantom wallet.
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The rise of Solana
In late 2017, Raj Gokal and Anatoly Yakovenko created the Solana blockchain. Their project aims to eliminate the scalability issues that most blockchain networks faced at the time. Yakovenko published a whitepaper describing a new timekeeping system for distributed systems, called Proof-of-History (PoH).
The Solana ecosystem was built by a core team of developers consisting of ex-engineers from Qualcomm, Intel, and Apple. The founders of the network have also established Solana Labs to help advance the Solana ecosystem. In Mar. 2020, the Solana ecosystem launched its Mainnet Beta.
Solana is a highly scalable and, what they claim to be, the fastest blockchain in the entire world. It is well-known for its extensive range of DeFi solutions and its SOL token. Solana is designed to process more than 50,000 transactions per second and compete with PayPal or Visa.
Since Solana was built to compete with Ethereum and other smart contracts networks, it allows developers to create DApps, decentralized exchanges (DEXs), and NFT marketplaces. According to DappRadar, in Jan. 2023, the total value locked (TVL) of the Solana blockchain in DeFi is around $249.3 million for the DeFi space.
The top DApps on Solana are Marinade, Quarry, and Tulip Protocol.
Solana’s native cryptocurrency is SOL, which is used to power the entire Solana ecosystem. SOL pays for network fees and supports staking.
Solana (SOL) saw outstanding growth in 2021, when it started the year at only $1.84 and reached an all-time high at $260 by Nov., translating to a 14,000% price increase. The project’s many partnerships and network launches contributed to the price growth.
And each major blockchain network requires a safe and easy-to-use cryptocurrency wallet. In Solana’s case, that is Phantom wallet.
Need a reliable hardware wallet for SOL? Get the NGRAVE wallet today!
What is Phantom wallet?
Phantom wallet is a non-custodial Web3.0 wallet, and it is the most popular cryptocurrency wallet for the Solana blockchain. Most new crypto users haven’t heard of it, since Solana only launched its mainnet in 2020. But Phantom wallet is mirroring what MetaMask wallet is for the Ethereum blockchain.
Web 3.0 aims to combine the decentralized nature of Web 1.0 (where people and businesses own their own websites) with the modern functionality of Web 2.0. Similar to MetaMask, Phantom wallet is a browser-based crypto wallet. When interacting with a Solana application, you will be able to connect your Phantom wallet, by simply logging in with the wallet.
Phantom aims to enable Web 3.0, and it allows users to freely transfer crypto assets between their wallet and the Solana DApps. For instance, gamers can use Phantom wallet to play blockchain games and claim their in-game tokens. Then, using the same wallet, they can connect to decentralized exchanges, such as Raydium to exchange those tokens for fiat money or any other Solana-supported tokens.
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The Phantom wallet currently supports the following currencies: USDT, USDC Raydium (RAY), SRM (SRM), and every utility token launched with Solana’s DApps.
The Phantom wallet will feel very familiar if you’ve ever used MetaMask before. The interface is easy to use and simple to navigate.
Here are some of the Phantom wallet features that most users will likely enjoy using:
- Phantom’s wallet built-in exchange
- NFT compatible
- Crypto staking capabilities
- Can connect to a hardware wallet (Ledger)
- Web3.0 support
Other features that may soon be implemented to the Phantom wallet are:
- Ethereum and ERC-20 tokens support
- More markets on the Phantom Swap feature
- Multi-chain support
Phantom’s built-in exchange
The Phantom wallet includes a built-in decentralized exchange. It allows users to instantly swap Solana-based tokens directly from within their wallets. The swap interface is similar to the one on the MetaMask wallet, and it displays the swap rate, slippage tolerance, and estimated fee when making swaps.
Since Phantom wallet introduced the swap feature in Jun. 2021, more than one billion dollars worth of trades have been conducted. This wallet aims to improve the DEX experience by fixing the UX and scalability issues as soon as they emerge.
Phantom wallet is NFT compatible
Phantom wallet supports NFT collectibles from the Solana blockchain. Since NFTs have become such a massive industry, many investors want to expand their portfolios on blockchains other than Ethereum.
The wallet has a feature that automatically groups similar NFTs to make it easier to access. This will save you from having to go through hundreds of NFTs trying to find what you are looking for.
It is important to note that the Phantom wallet only supports Solana NFTs. However, if the wallet cannot identify the token as an NFT, it will display it as an SPL token.
Crypto staking capabilities
Investors can stake solana (SOL) crypto and receive rewards using the Phantom wallet. Similar to other cryptocurrencies that can be staked, the solana staking rewards depend on the chosen validators from the available ones.
Please note that the wallet doesn’t offer built-in staking options, and it only connects the investors to the validators that receive the stake and pay the rewards.
Staking solana (SOL) is easy. Once your wallet has SOL, you can click on the solana balance and select the option Start earning SOL. The wallet will show a list of validators where you can pick from. After selecting one, simply click Stake and that’s how you can stake SOL using the Phantom wallet.
Hardware wallet (Ledger) support
Phantom wallet allows you to connect to Ledger, the popular hardware wallet. This means that your tokens will always be safe on your hardware device. This feature is currently only available for Ledger hardware devices.
To use Ledger with your Phantom wallet, you will need to install Ledger live on your device, and then you will be able to connect your Ledger hardware wallet. You will need to create an address and account to pair your wallet.
Don’t wait — get a Ledger wallet to connect to you Phantom wallet today!
Web3 support
Web3 represents the decentralized internet. It is able to combine the power of blockchain technology and of the internet to allow decentralized applications (DApps).
As the Solana ecosystem continues to expand, internet users will find thousands of apps to interact with. We’ve talked before about the top Solana projects that have massive potential.
Phantom wallet pros and cons
Here are some of the advantages and disadvantages of using the Phantom wallet.
Pros
- The wallet is user-friendly and is available on multiple browsers (Chrome, Brave, Firefox, and Edge)
- The wallet features a built-in swap
- Supports a hardware wallet (Ledger) for increase security
- Is a non-custodial wallet. Only you can access your private keys and your crypto funds.
- Supports NFTs
Cons
- Phantom wallet is a new wallet, as it was launched in 2021.
- Phantom wallet is dedicated to the Solana ecosystem and doesn’t support other networks.
- Limited to the Solana blockchain
- Some Phantom wallets were victim of a Solana wallets hack
Safety of Phantom wallet
The Phantom Wallet is a secure non-custodial browser wallet, meaning that users hold their own private keys. Being a self-custodial wallet, this gives users full control of their assets. Since Phantom is non-custodial, this also means that users have the sole responsibility to ensure the security of their wallets.
To give an example of how important this is, some Phantom wallets were the victim of a Solana wallets hack. In this exploit, about 8,000 wallets were compromised and $8 million dollars worth of assets were drained. The affected wallets were Slope, Phantom, and Trust wallets.
However, the problem originated from the Slope wallets. The Slope wallets saved seed phrases in plaintext on their centralized Sentry server; the problem is, when you save your password on any app or account, it is not saved in plaintext but ciphertext for safety. Wallets that imported Solana originated addresses and addresses used at one point in the Slope wallet were affected.
Some Phantom wallet users imported Slope originated addresses and were exploited. This is an example of how personal responsibility can affect even the safest wallets.
How to use Phantom wallet?
The Phantom wallet can be downloaded as a web extension and is easy to use. You only have to install the plugin, create a new wallet, or import an existing one using the seed phrase.
The wallet will display your portfolio balance, allow you to send and receive coins, as well as give you access to the other functions.
Is Phantom wallet the MetaMask of Solana?
Turns out that Phantom wallet is the MetaMask of the Solana Ecosystem. And since the SOL platform doesn’t seem to stop from developing and launching new decentralized applications anytime soon, you’ll likely need a Solana wallet if you want to interact with it.
Being relatively new, more features will be added over time. So far, it looks pretty nice and ready to hold, swap, and stake SOL, in a non-custodial way.
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Frequently asked questions
Does Phantom have a mobile wallet?
Is Phantom a Solana wallet?
Is Phantom a safe wallet?
How do I get the Phantom wallet?
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