- Contrary to popular belief, a bitcoin wallet does not store bitcoin but rather it stores the private key which is protected by encryption to a public key that is visible on the blockchain. A bitcoin wallet provides a digital signature for when it needs to send bitcoin to another address.
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Bitcoin wallet is an application - storage for your private keys. You can use it to sign transactions and check on your balance.
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Bitcoin wallet stores private key
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A bitcoin wallet stores your private keys. It uses these keys to sign transactions.
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- Describe in short what a bitcoin wallet does.
A bitcoin wallet stores your private key, signs a transaction, and broadcasts the transaction to nodes.
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The wallet hold your private key and records money being sent to you or money going out that is spent.
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Itâs primary function is to store a private key associated with the address of the wallet. It uses this key to sign transactions, which can then be broadcast to the network. Using the public key generated with the private key and also associated with the bitcoin address, network nodes can verify that the legitimate owner of the address have initiated the transaction.
They also query the blockchain for the addresses balance. They do so either through a full node (with all transactions ever) or an SPV, which does not store the full ledger, but relies on a full node.
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A Bitcoin wallet can store private and public key, sign transactions, broadcast transactions and read the transactions.
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- Describe in short what a bitcoin wallet does.
A wallet in a simple words, save your private keys offline, not connected with the internet, safe from hackers.
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Wallets manage usersâ private and public keys. They create transactions, manage the signature process thanks to the private key and send the signed transactions to the blockchain network. They listen and fetch transactions data corresponding to their userâs private keys in order to display userâs balances, transactions status and reception of funds.
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The bitcoin wallet doesnât actually store any âCoinsâ but instead it Stores your private key and signs transactions and sends it to the nodes for approval (Broadcast) and Read the blockchain. It also calculates your Balance using the UTXOâs on the network.
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Thanks for the feedback. Some of these concepts are difficult to articulate in a concise manner without writing a book of an answer.
- A wallet in bitcoin does 4 functions:
a) holds your private key
b) creates and signs transactions
c) broadcasts transactions to the nodes in the blockchain
d) reads information from the blockchain
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A BTC wallet holds your private keys, creates and signs transactions, broadcasts those transactions, and queries the blockchain for received transactions. It does not actually hold coins.
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A bitcoin wallet stores your private key.
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- A bitcoin wallet stores your private key. It reads the blockchain and allows you to send or receive bitcoin.
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A BTC wallet stores private keys, creates and signs transactions, broadcasts transactions, reads blockchain, allows sending and receiving BTC.
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- A Bitcoin wallet, cold or hard wallet like ledge nano s⌠Stores your private key, which makes a public key. Now you can post a public key to receive transactions from anyone. And send a transaction and verify release of funds by verifying the transaction thru the use, or possession of the private key, then disconnect the ledger. Private keys are never stored on the computer or broadcast to the internet. One more thing not mentioned is recovering a wallet with a seed phrase. If a ledger breaks or is lost the seed phrase can restore a wallet, never store such a phrase on the computer eitherâŚ
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- Follow up⌠construct, sign and broadcast transactions
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Bitcoin wallet does the following - It:
- Stores your private key(s) and;
- Creates and signs your transactions and;
- Broadcasts your transaction to the network and;
- Reads the blockchain
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