A wallet stores the private keys and facilitates the signing of transactions. It’s also used to check your fund balance.
1 Like
Describe in short what a bitcoin wallet does. A wallet stores your private key. Creates, signs, broadcasts and reads transactions
1 Like
Describe in short what a bitcoin wallet does:
When a user interacts with the blockchain they use a wallet on their mobile phone, computer or on a website. They can send or receive bitcoin. Sending bitcoin is done by using the wallet to initiate transactions. A transaction is signed with your private key and sent out to the network – sent to all nodes in an unconfirmed state. Only the Miners can confirm a transaction (Miners are inherently also nodes which produce new blocks).
A wallet stores your private key, creates and signs transactions, broadcasts transactions to the network for propagation to the network. Notifies you when you have received coins – It scans the network to confirm incoming bitcoin. When the transaction is validated your ledger balance is updated (increase or decrease) across the entire network record of the database. There are really no coins at all, just a record of your balance on the network.
1 Like
A bitcoin wallet can be a node, SPV, paper or hardware. It’s primary functions are to store your private key and communicate with the blockchain regarding transactions.
There are hosted wallets, as well: Coinbase, Binance, Celsius that hold thousands of keys for thousands of customers on a cold wallets.
1 Like
Bitcoin wallet stores private key, create and sign transactions and broadcasts them to the blockchain network where the bitcoin miners validate the transactions.
1 Like
Describe in short what a bitcoin wallet does.
A bitcoin wallet stores your private keys. It doesn’t store any Bitcoins or coins.
It can send or receive bitcoin. A wallet can create transaction and signing it with the private key.
Then it broadcasts the transactions to the network so it can be validated by other nodes.
The wallet reads the blockchain ledger of other nodes and update its bitcoin balance based on the changes in their entries.
1 Like
A bitcoin wallet is a place where your private key is sored.
1 Like
- A bitcoin wallet does
- store the private key.
- Create and sign a transaction.
- broadcast the transaction.
- Read blockchain.
2 Likes
Describe in short what a bitcoin wallet does. Holds both keys (public, private). When you need to buy/sell bitcoin, wallet applies digital signature using keys. Signed transaction get sent to blockchain by wallet.
1 Like
A wallet holds your private key and uses it to sign a transaction in a way that the private key is not in any danger of being connected to the internet
1 Like
1.) In short a Bitcoin wallet essentially stores your private keys, creates and signs transactions, broadcasts the transactions to the network, and reads/ quaries the blockchain. Wallets and wallet features can very however for the most part these are the things a bitcoin wallet can do.
1 Like
A bitcoin wallet shows your balance, construct, broadcast and receive transactions which are signed with your private key.
1 Like
A bitcoin wallet stores your private keys and uses them to sign transactions and do transactions
1 Like
Most wallets like Mobile phone, Paper, Hardware, and Node (computer) wallets hold your private keys and sends and receives by creating and signing transactions.
Hosted wallets have the private keys on the server and typically you do not have your private keys on that wallet.
1 Like
Store your private keys and sends transactions. They don’t store coins.
1 Like
A bitcoin wallet stores your private keys, which is used to sign transactions (proof of origin).
1 Like
Homework on Role of Wallets - Questions
- Describe in short what a bitcoin wallet does.
A wallet is a location that stores your private key for access to the blockchain ‘database’ for the confirmation of ownership for the currency associated with that key.
A wallet does not store any currency, just the private key that creates the public key and signature to access the blockchain that is stored on the nodes containing the data.
Different storage locations and wallets of coins:
Exchange
Not recommended to store coins in due to lack of security and not having access to your own private keys. If the exchange goes down or hacked then potential risk to losing currency is high.
Online
Online wallet that is accessible from any location with access to the network using password protection and 2FA for security of your private keys. Additional security to an exchange but still vulnerable as your private keys are always being stored online.
Desktop
This wallet runs on the local machine that it is installed on, like a home PC, laptop or Mac. A program can be downloaded and installed from the website of the wallet, this will now store your private key more safety on your machine and not on the internet.
Mobile
These wallets must have the app installed on a mobile device to use the services,again, they store your private more safely but still connected to the internet, in your wallet on your device.
Cold Storage
The safest of all, this type of wallet stores your currency offline, it is not connected to the internet but instead is store on a usb device that is plugged into a computer to access your private keys to use the currency it is storing.
1 Like
Wallets manage transactions (construct, sign and broadcast), private keys, generate a public key, checks for UTXOs on the blockchain to see which ones are related to the private keys its stores and aggregates the results. Wallets estimate transaction fees based on the previous fee spent on similar transactions.
1 Like
Bitcoin wallets are used for (supposedly) securely storing the private keys and (in case of an virtual wallet) initiating, signing and distributing the transactions over the network.
1 Like
- Describe in short what a bitcoin wallet does.
It stores Private keys and has the ability to create and sign transactions.
1 Like