Homework on Role of Wallets - Questions

A BTC wallet allows you storage your bitcoins, which are not coins but data.
Also, you can send and receive transactions through your wallet.

Wallets :purse:

Describe in short what a bitcoin wallet does
In its simplest form a wallet is made up of your private key from which public keys can be derived. Wallet applications usually provide an interface for you to send and receive funds (i.e. create and sign TXs) as well as check your balance that is recorded on the blockchain.

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!)store your private key, create ,sign , broadcast and read a transactions from your bitcoin wallet

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  1. Describe in short what a bitcoin wallet does.

A wallet is a way to store and interact with a funds that are related to your public key in the network’s ledger.
The wallet can be implemented in several ways, but it will never contain the coins them self instead it will need to check the updated blockchain for how much funds in the wallet relevant keys.
The most important keys in selecting a wallet is all about the keys:

  1. knowing how the private key is handled within the wallet.
  2. knowing that you and only have access to the private key for the wallet.
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There are no bitcoins in a wallet. All bitcoins are on the public blockchain wich mentions wich keys own it and the changes of ownership in transactions. So your Wallet is basically a Keychain that stores private keys where you can sign and broadcast transactions. It will read the blockchain for incoming transactions and will show your balance by summing up all bitcoins your keys can spend.

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A true bitcoin wallet will host the public and private key of a user.

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Your wallet stores your private keys. When you want to send bitcoin it will create and sign a transaction and broadcast it to the network. When you receive funds your wallet reads the blockchain and tells you that you have coins to spend.

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  1. Describe in short what a bitcoin wallet does.

Depending on the type of wallet you are using, a bitcoin wallet stores your private keys, creates and signs transactions, broadcasts the Tx to the network, and reads the blockchain to notify you that you have funds.

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  1. Describe in short what a bitcoin wallet does.

A wallet stores your private key , needed to manage your funds stored on the blockchain. Also , a wallet reads data from a SPV or a node to check current funds.

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It stores your private key. You can use it to create and sign transaction.

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Bitcoin wallet stores your private key, which is needed to sign your transactions and validated by several nodes.

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  1. A bitcoin wallet allows users to buy, sell and store bitcoin. It does hold your private keys thus leaving you vulnerable to a hack of their system. Not your keys not your crypto!
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  1. A bitcoin wallet store your private keys and creates transactions. It signs the transactions with the private key, then broadcast them to the bitcoin network. It also checks network to receive coins.
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1. Describe in short what a bitcoin wallet does.

  • The BTC Wallet does not store any coins. Just your private key, from which you can create transactions, recieve transactions and read the blockchain.
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A bitcoin wallet is apart of the eco system that holds the private/public key and allows you to send/receive bitcoins. It also creates the transaction, broadcasts and reads the blockchain.

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Basically it stores your private key(s) (preferably offline) which you can used to sign transactions online.

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  1. A bitcoin wallet creates transactions. It also holds private keys, minus the hosted wallets. When it creates a transaction it communicates with the nodes with use of a SPV or by running the node yourself.
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  1. Describe in short what a bitcoin wallet does.

A bitcoin wallet holds your private keys for you in a decentralized way so you have full control of your private keys as hardware and paper wallets are held offline. Only you can spend your bitcoin. The private keys sign transactions.

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  1. A wallet stores your private keys
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A wallet doesn’t store your coins, those are stored on the blockchain. A wallet merely contains keys to access them. :slight_smile:

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