Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#2148

Bitcoin wallet handles your private and public key. It can also create and sign transactions and read data from blockchain.

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#2149

Bitcoin wallet contains Private key, signs, sends and receives transactions.

#2150

More importantly, the private key! the public is less important because you can always calculate the public from a private key (not vice-versa)

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#2151

Thanks Fabrice, I corrected my answer. Private key is what I actually meant.

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#2152

A bitcoin wallet stores your private keys, create, sign and broadcast transactions. It comunicate with nodes or SPVs, reading the database and allowing it to verify your balances, send, sign and broadcast transaction.

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#2153

A bitcoin wallet stores private keys that allows the holder of the private keys to sign transactions on the bitcoin network.

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#2154

A bitcoin wallet keeps track of and signs all transactions that utilize your private keys. This helps to track the amount of funds you have access to in your account.

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#2155

Bitcoin wallets serve 3 primary functions.
These functions are;

  1. To generate and store private keys for that wallet address.

  2. Signs transactions and sends them to the nodes to get to work on validity.

  3. Receives Confirmed transactions and updates the balance assigned to the address.

Different types of wallets have different functions for their purpose.

  1. Standard Wallet, Online wallet which stores your private keys within its application database. When a transaction is made the wallet will create a transaction and sign it with its private keys, then send it to the nodes for validation.

  2. Node, Used for validating transactions. Nodes have their own own private keys and copy of the block chain which is constantly updated.

  3. SPV’s, Generally Mobile Application Wallets. When a transaction is made the SPV will keep querying the nodes until it receives its transaction back as confirmed. Needs to check multiple nodes for confirmation. SPV’s don’t have their own updated copy of the block chain.

  4. Paper Wallets, Original method of storing private keys offline. When you need to make a transaction with paper wallet you generally get a new wallet as the security of the private key has now been compromised.

  5. Hardware Wallets, Hardware wallets also store private keys offline although in a different way to paper wallets. Hardware wallets use 2 parts. The actual wallet and an online application.
    Private keys are stored on the hardware wallet and then a transaction needs to be made, the hardware wallet will send a signed transaction to the app which will then send it off to the network.

Connect Hardware wallet via USB
App makes a transaction request to hardware wallet
Hardware wallet sends a signed transaction back to the app
App sends signed transaction to network for confirmation.

  1. Hosted, these are wallets on websites like Coinbase, Bittrex, Binance.
    These wallets are so you can store and see your funds on the exchange or in their web app but YOU DON’T OWN THE PRIVATE KEYS - they’re technically not yours until you transfer the funds to a wallet you control the private keys for.
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#2156

A bitcoin Wallet, generates a unique private key for its users to create and sign transactions that the public can view on the blockchain after approval. A Wallet stores private keys not coins, and are verified by nodes.

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#2157

A wallet holds private keys and when a transaction is signed and verified, transaction is completed.

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#2158
  1. Describe in short what a bitcoin wallet does.

A wallet is a platform or document which holds the info of private keys and public address. A digital wallet can show your balance and sign for transactions.

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#2159

a bitcoin wallet can: store your private key, sign transaction and broadcast to the network, and when you receive a transaction the wallet will read the blockchain and notify you

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#2160

A wallet stores your private keys. A wallet can also - scan the network to calculate balances or transaction fees, sign transactions, generate public keys, create pretty graphs to show balances over time and more.

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#2161
  1. Describe in short what a bitcoin wallet does.

A Bitcoin wallet sends and recieves bitcoin transactions, it stores your private key, creates signatures to verifty bitcoin movement from the database. It doesn’t store actual coins it only reads the blockchain database.

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#2162
  1. It’s a device or app that carries your private keys. It is used to create and sign your transactions, and keep track of your currency.
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#2163

:grin:perfect stuff @marsrvr

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#2164

It is a program that: stores the private key; creates and signs transactions; checks balances by summing utxo’s transactions on the blockchain.

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#2165
  1. Describe in short what a bitcoin wallet does.
  • Stores the users private key, creates the matched public key and signs (confirms) any transactions when sending TX from the wallet.
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#2166

It stores the private key and let you create transaction and sign it with your digital signature.

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#2167

A new transaction will be ‘unconfirmed’ until some miner includes it in a successfully mined block

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