Parity Wallet Review – Is It Safe and How to Use It

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Parity Wallet has long been recognized as a powerful desktop solution for managing Ethereum (ETH) and ERC-20 tokens. Developed by Parity Technologies, it combines wallet functionality with a full Ethereum node and decentralized application (dApp) browser. Designed for developers, enterprises, and advanced users, Parity emphasizes performance, security, and modularity through cutting-edge peer-to-peer technology.

This comprehensive review explores Parity Wallet’s features, usability, security, and setup process. Whether you're evaluating it for personal use or enterprise integration, this guide provides the insights you need.

Key Features of Parity Wallet

Parity Wallet is more than just a cryptocurrency storage tool—it's a full Ethereum client with built-in dApp browsing capabilities. As a GUI-based wallet, it allows direct interaction with the Ethereum blockchain while running as a full or light node on your machine.

By hosting your own node, you gain full control over your data and transactions without relying on third-party services. This enhances privacy and reduces dependency on external infrastructure.

👉 Discover how to securely manage Ethereum and ERC-20 tokens with advanced wallet features.

Supported Platforms and System Requirements

Parity supports all major operating systems: Windows, macOS, and Linux. It also runs on Docker, making it suitable for containerized environments often used in development and enterprise settings.

You can choose between two node types:

Both options require a 64-bit operating system.

Multi-Coin Support

Parity Wallet natively supports Ethereum (ETH) and over 1,000 ERC-20 tokens, making it ideal for users who hold diverse Ethereum-based assets. Some widely used tokens include:

This extensive compatibility ensures seamless management of popular and emerging tokens within a single interface.

Built-In Exchange Functionality

One of Parity’s standout features is its integrated exchange, accessible via the "Accounts" tab. By clicking the Shapeshift button, users can swap between supported cryptocurrencies directly from the wallet interface.

While convenient, these exchanges incur fees set by the underlying service (e.g., ShapeShift). Transactions are processed off-chain but remain secure due to non-custodial architecture—your private keys never leave your device.

👉 Learn how decentralized exchanges simplify crypto trading without compromising security.

Security: Is Parity Wallet Safe?

Historical Security Incident

In 2017, Parity suffered a high-profile vulnerability that led to the freezing of over $300 million worth of Ether due to a flaw in its multi-signature wallet library. While funds were not stolen in most cases, the incident raised concerns about code reliability and audit practices.

However, the team responded swiftly with patches and improvements. Since then, no major breaches have been reported—indicating strengthened development protocols and enhanced code review processes.

Rust Programming Language Advantage

Unlike many wallets built with C++ or JavaScript, Parity is written in Rust, a systems programming language known for memory safety and concurrency. Rust’s design prevents common vulnerabilities like buffer overflows and null pointer dereferences.

Additional security layers include:

These factors contribute to a robust, resilient system resistant to common attack vectors.

Privacy and Anonymity

Parity enhances user privacy by minimizing digital footprints. Running a full node means you don’t rely on public APIs that could log your activity. The wallet’s small runtime footprint also reduces exposure surface and improves cache efficiency.

While not fully anonymous like Monero wallets, Parity offers stronger privacy than web-based or lightweight mobile wallets that depend on centralized servers.

Transaction Fees and Network Control

Parity does not charge transaction fees. Instead, all ETH and token transfers pay standard gas fees to Ethereum miners. These fees fluctuate based on network congestion.

Users can adjust gas prices manually to prioritize speed or cost-efficiency:

This level of control benefits advanced users who want to optimize their transaction timing and costs.

How to Install and Use Parity Wallet

Step 1: Download and Install

Choose your operating system:

Windows

  1. Visit the official repository and download the Stable version (recommended over Beta or Nightly).
  2. Run the installer and follow prompts.
  3. Allow time for blockchain synchronization if running a full node.

macOS

  1. Download the stable release for macOS.
  2. Install the application package.
  3. Initial sync may take several hours depending on internet speed and hardware.

Linux

  1. Download the appropriate binary or use package managers.
  2. Run the installer in terminal.
  3. Enable hidden file viewing if needed to access configuration folders.
Note: Synchronization time varies significantly between light and full nodes. Light nodes sync in minutes; full nodes may take hours or days.

Step 2: Create or Import an Account

Navigate to Accounts > +Account:

You’ll receive a 12-word recovery phrase—write it down securely. This phrase is essential for restoring access if your device fails.

Step 3: Send and Receive Assets

To send funds:

  1. Go to Transfer
  2. Select asset (ETH or ERC-20 token)
  3. Enter recipient address or select from contacts
  4. Set amount and gas price
  5. Confirm with password

To receive:

  1. Open Accounts
  2. Copy your public address or share the QR code

Always double-check addresses—transactions on Ethereum are irreversible.

Backup and Recovery Options

Backup Methods

Your keys are stored in the local parity directory:

Each account has an encrypted JSON file (KeyStore). Protect these files with strong passwords.

Additionally, store your 12-word mnemonic phrase offline—preferably on paper or hardware storage.

Restore Your Wallet

You can recover your wallet using:

Ensure backups are stored securely and never shared.

Advanced Features for Developers

Parity Wallet is particularly suited for developers due to its rich toolset:

These tools make Parity an excellent choice for building, testing, and deploying blockchain applications.

Common Issues and Troubleshooting

Some users report UI issues after version updates:

Solution: Launch Parity with the --force-ui flag to re-enable the browser interface.

Also ensure firewall settings allow local connections and that ports are correctly configured.

Frequently Asked Questions (FAQ)

Q: Where are my Parity Wallet local files stored?
A: On Windows, check AppData\Roaming\Parity\Ethereum\keys. On macOS, go to ~/Library/Application Support/io.parity.ethereum. On Linux, look in ~/.local/share/io.parity.ethereum.

Q: Can I mine Ethereum using Parity Wallet?
A: Yes. Parity supports standard JSON-RPC mining methods (eth_getWork, eth_submitWork), allowing integration with compatible miners like Ethminer.

Q: Does Parity support two-factor authentication (2FA)?
A: No, Parity does not offer built-in 2FA. Security relies on strong passwords, encrypted keys, and offline backup storage.

Q: Is Parity Wallet still actively maintained?
A: While development focus has shifted toward Polkadot and Substrate frameworks, core Ethereum support remains functional and secure for existing users.

Q: Can I use Parity on mobile devices?
A: No. Parity Wallet is desktop-only. For mobile access, consider wallets like Trust Wallet or MetaMask.

Q: What happened to the Parity multi-sig wallet hack?
A: In 2017, a critical bug allowed attackers to freeze funds in multi-signature wallets. The issue was patched, but some funds remain inaccessible due to the self-destruct function exploit.

Parity Wallet remains a technically robust option for users seeking full control over their Ethereum environment. While less beginner-friendly than modern alternatives, its emphasis on security, privacy, and developer utility ensures ongoing relevance in the blockchain ecosystem.

👉 Explore secure ways to manage digital assets across platforms.