Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#2028
  1. Allows you to send and receive value or data in an encrypted manner.
#2029

Thank you for pointing that out :slight_smile:

#2030

A bitcoin wallet stores private keys, creates and signs transactions, and broadcasts the transaction to the network. When we receive funds, the wallet reads the blockchain and notifies us on the funds we have.

1 Like
#2031

Transactions are not really encrypted and is not what wallets are responsible for. Wallets store private keys and in case they are not just paper wallets can also sign transactions and check balance :slight_smile:

#2032

A bitcoin wallet doesn´t store coins. What it stores are the private keys that are used to sign transactions.

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#2033
  1. A Bitcoin wallet is used to send and receive transactions. It holds the private key use to sign transactions and communicates with other full nodes. It can hold a full copy of the blockchain or query full nodes to contrast transactions with the blockchain history. The wallet itself does not hold any tokens, these are stored in the network itself.
1 Like
#2034

A wallet stores your private keys, which you can use to create and sign transactions so you can send and receive btc funds, ater it has read the blockchain confirming those transactions. This is how it checks your balance.

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#2035

A wallet stores your private keys, generates public keys, broadcasts transactions.

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#2036

A wallet stores your private key. Your private key is used to generate and sign for transactions

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#2037

Bitcoin wallet stores your private key allowing you to send/receive funds. Using your private key to sign the transaction.

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#2038

A bitcoin wallet stores your private keys, signs transaction using your private keys, broadcast the transactions to the network and reads the blockchain and notify you if you have receive any funds.

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#2039
  1. Describe in short what a bitcoin wallet does.

A wallet stores your private key which you use to digitally sign a transaction which is broadcasted via spv to all nodes to confirm and record the transaction on the Bitcoin blockchain

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#2040
  1. A wallet can be a node in the Bitcoin network. There are many different types of wallets but all do store your private key(s) and sign transactions. Wallets which don’t download the whole blockchain / transaction history (because of the size; smartphones for example can’t store hundreds of Gigabytes of data) are called SPVs and get the needed data from other “full nodes” / wallets.
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#2041
  1. Describe in short what a bitcoin wallet does.

A wallet stores your private key. It can create and sign transactions with your Private Key and broadcast to the Blockchain. It can also read the BlockChain to receive funds. There are no coins in your wallet, coins and balance is int the Blockchain Ledger.

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#2042
  1. Holds your private keys which are used for signing receive/send trs. It stores a copy of the BC so it can check of it is a " legit" transaction.
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#2043

A bitcoin wallet holds your private keys which allows you to make transactions and provide a digital signature for funds leaving your wallet. A wallet can also read the block chain and broadcast the amount of bitcoin stored on it.

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#2044

1. Describe in short what a bitcoin wallet does.

A Bitcoin wallet holds the private and public key and is used to sign and broadcast transactions to the network, the network then confirms u really do have to amount of UTXO’s to spend. If the network reaches consensus the transaction will be put in a block.

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#2045

Bitcoin wallets store your crypto. There are many types of wallets such as, paper, mobile, desktop, exchanges, ledgers etc. It allows you to send and receive various crypto p2p. Hard wallets are the safest.

2 Likes
#2046

The primary function of Bitcoin wallets is to keep track of ones identity.
Unlike how we use physical wallets to conveniently hold onto and store our physical money, our digital Bitcoin wallets don’t actually let us store bitcoins.
Bitcoin wallets are simply a method of storing and accessing your private key, which then
allows you to spend the corresponding bitcoin.

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#2047

This part is usually referred as a full node and is independent from a wallet. True on bitcoin core it is part of the same software, but can work independently. :slight_smile: