the btc wallet is keeping your private key which is there for signing your transactions, sort of.
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A bitcoin wallets holds your private key, which signs transactions, sends, receives and broadcasts to/from the network.
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A crypto wallet has a few functions, it stores your private key, It creates and signs transactions, It broadcasts transactions and it can read the blockchain. It does not hold any tokens.
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- Holds or contains your private key.
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- The primary function of any bitcoin wallet is to store your private key and allow you to interact with the network
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Course: Blockchain & Bitcoin 101
Section: Bitcoin Basics
04 Wallets - No coins, Types of wallets
05 Hosted Wallets
06 Homework - Wallets
Notes:
A wallet stores your private keys. It creates and signs transactions when you want to send money. It then broadcasts it to the network. When you receive money, your wallet will read the blockchain and notify you that you have funds to spend.
Homework:
1. Describe in short what a bitcoin wallet does.
A wallet will:
- Construct the transactions,
- Sign the transaction with your digital signature,
- Broadcast the transaction to the network,
- Control your private keys,
- Store your private keys,
- Read the blockchain when you receive money,
- Notify you that you have funds to spend when you receive money, and
- Add your outputs that you can spend and show you your balance.
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- Describe in short what a bitcoin wallet does
The bitcoin wallet holds the most sensitive of information known as the private key. The private key being used to digitally sign and verify transactions. These wallets take many different forms.
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A bitcoin wallet stores a private key, from this private key a public key is derived. And from the public key a bitcoin address is derived. The private key must be kept safe to ensure the safety of the bitcoin âstoredâ on it. The public key can be made public, anyone can send funds to this. The private key is used to sign transactions broadcasting information. In other words it approves spending of bitcoin to another wallet.
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A Bitcoin wallet stores your Bitcoin private key. When sending Bitcoin to another wallet, it signs the transaction using the private key before broadcasting it to the network. It is also constantly updating its version of the blockchain to keep track of your Bitcoin funds.
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A wallet serves 4 functions:
- stores all of your private keys to bitcoin, essentially acting as a âpassword storageâ to each ledger transactions.
- automatically calculates your bitcoin balance by reading your stored private keys, decrypts that private keys to find the matching Unspent Transaction Outputs (UTXOs), and adding up all of UTXOs.
- provides an interface to interact with the keys that you own, usually by signing messages when adding them into a transaction block or sending bitcoins to an address. This, as a side-effect, provides a form of proof-of-ownership to the wallet.
- allow its owner to share its public key (a.k.a. wallet address) to other peers to send a message or transactions into.
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A bitcoin wallet stores your private keys. And with your wallet and private keys it is possible to sign transactions and check your balance
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- A bitcoin wallet does not coin, it contains only the private key used to sign transaction
- A bitcoin wallet initiates transactions and signs the transaction using private key, then broadcasts the transaction to all nodes in the network
- Other Nodes in the network receive the transaction and verify in the blockchain that the transaction is valid
- if transaction is not valid, they should create another transaction to reject the transaction request
- if transaction is valid, all nodes should approve the transaction
- The miner should then add the transaction in a block and attach the block to the blockchain
-The transaction is recorded in the blockchain
-The blockchain is replicated to all nodes
-User receives notification that money is deposited or withdrawn in the account
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Describe in short what a bitcoin wallet does.
A bitcoin wallet stores and uses your private key to create and sign transactions, then it broadcast the transaction to the blockchain. If the bitcoin wallet receives funds, it reads the transaction on the blockchain and notifies the wallet owner of the new spendable balance.
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Describe in short what a bitcoin wallet does.
a bitcoin wallet stores private keys, is able to sign & broadcast transactions and monitors the network for incoming transactions
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If the transaction is invalid there is no need to rebroadcast another transaction to cancel it.
One can rebroadcast a transaction with a higher fee in case if for example a network is congested and the tx is stuck in the pool for a while. 
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A bitcoin wallet stores your private keys, generates new private keys, as well as signs new transactions.
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Homework on Role of Wallets - Questions
- Describe in short what a bitcoin wallet does.
Holds private keys used to sign transactions.
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The wallet stores the Private Keys. It will create and sign transactions as well as propagate those transactions into the network. When money is received it will notify me that I have money to spend.
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The wallet stores my private keys to sign the transactions I broadcasted into the blockchain.
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A wallet stores your âbitcoinâ in the way of private keys and public keys.
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