What is MetaMask and how does it work?

Main

• MetaMask is a crypto wallet created by ConsenSys.
• Supports storage and transfer of cryptocurrencies and NFTs issued on Ethereum or EVM-compatible blockchains. It also contains a cryptocurrency swap service.
• The most popular version of MetaMask is a browser extension: thanks to this, the wallet interacts with smart contracts of decentralized applications at the web application level.
• MetaMask is often used for decentralized finance (DeFi) and non-fungible token (NFT) applications.

What platforms is MetaMask available on?

MetaMask was developed by ConsenSys, a company created by Ethereum co-founder Joseph Lubin. The wallet was released back in 2016, before the advent of DeFi. Until 2020, it only existed as an extension for Google Chrome and FireFox browsers.

MetaMask is now available for download as a mobile app for iOS and Android, as well as a web extension for Google Chrome, Firefox, Brave, and Microsoft Edge. The latter is “seamlessly” connected to the smart contracts of the decentralized application when entering its page. This allows you to use the protocol and make cryptocurrency transfers without the need to register a separate wallet in it.

MetaMask is one of the most popular wallets for the Ethereum ecosystem. According to ConsenSys, the app’s monthly active users exceeded 30 million in early 2022, up 42% from April 2021.

What blockchains does MetaMask use?

Initially, only Ethereum was in MetaMask, but today all popular networks compatible with the Ethereum Virtual Machine (EVM) have been added to it. You can connect new mainnets in the application settings.

As of early May 2022, MetaMask supports all cryptocurrencies of the following networks: Ethereum, Polygon, Fantom, Avalanche, Optimistic Ethereum, Arbitrum One, Aurora Network, Cronos, Harmony, Celo and EOS.

How to add the Binance Smart Chain (BSC) network to MetaMask?

To store BEP-20 standard crypto assets of the BSC network (since recently, its common name is BNB Chain) in MetaMask and pay for transactions with BNB coins, you need to follow a few simple steps:

1. Go to the “Settings” section, select the “Networks” item in it.

2. Click the “Add network” button in the upper right corner and manually enter the parameters:

Network name: smart chain

New RPC URL (blockchain address): https://bsc-dataseed.binance.org

Network ID: 56

Symbol: BNB

Block Explorer URL: https://bscscan.com

After that, BNB Chain (Binance Smart Chain) will be added to MetaMask. You can switch between different blockchains in one wallet by pressing just one button.

–What are the fees in MetaMask?

By default, MetaMask works on the Ethereum network and charges a transaction fee in ETH (“gas”). The specific amount of the fee depends on the network load at the time of the transaction.

Ethereum transaction fees have been too high lately. To pay less for transfers, you can use another network such as Polygon, Fantom or BNB Chain.

In the extended version of the application, you can change the commission amount. The higher the price, the faster the transaction is executed. However, we do not recommend making the commission too low, otherwise the transaction may take a very long time or even get stuck.

What is MetaMask Swaps?

The MetaMask wallet has a built-in DeFi service that allows you to make swaps (exchanges) of various digital assets. It was developed in collaboration with Codefi.

The service works on the principle of an aggregator: it collects coin quotes from leading decentralized exchanges in real time, choosing the best prices. In the list of sites: Uniswap, Totle, AirSwap, 0x and 1inch.exchange.

MetaMask Swaps also has other features such as reduced swap fees and slippage protection.

What are the advantages of a crypto wallet Metamask?

The MetaMask application has a number of clear advantages: an eminent developer, a large number of cryptocurrencies, a support service, additional features and a laconic design.

In addition, MetaMask is a non-custodial crypto wallet: its developers do not collect private keys and user seed phrases. That is, address owners have full control over their funds.

The MetaMask plugin has a partially open source code – this allows independent developers to participate in the development of the application and check and identify potential vulnerabilities in the program.

What are the disadvantages of MetaMask?

The MetaMask wallet has not had any major hacking incidents due to an exploit in the code. However, one of the key disadvantages of MetaMask is the Internet connection. This makes its individual users vulnerable.

To solve this problem, in 2018 MetaMask added the ability to connect a Ledger hardware wallet to combine the reliability of a cold wallet with the convenience of a hot one.

At the end of 2021, some MetaMask users fell victim to a massive phishing attack using a fake wallet site.

In April 2022, the wallet team warned of outages due to malfunctions in the Ethereum infrastructure provider Infura. She also advised disabling iCloud backup for MetaMask.

Does MetaMask have its own token?

At the moment, the MetaMask project does not have its own token. However, in November 2021, the head of ConsenSys, Joseph Lubin, hinted that this could change.

Again, the company commented on this story after just a couple of months. COO Jacob Cantale called the introduction of a governance token in MetaMask an “important aspect” in the decentralization process, which will help put project management in the hands of the community.

At the same time, Kantale urged not to rely on a generous token airdrop.

How is MetaMask evolving?

Initially, there were no restrictions on the use of the MetaMask source code. However, in August 2020, the application developers obliged commercial projects with a large audience to enter into a special agreement with them on the paid use of the program.

In September 2020, ConsenSys released a mobile app for MetaMask.

The latest version of the mobile wallet also introduced Apple Pay payments and “gas-free transactions”, which makes it much easier for users to buy cryptocurrencies with fiat.

Soon the developers also plan to add support for bitcoin.