Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#2710
  1. Describe in short what a bitcoin wallet does
    A bitcoin wallet stores your private key, signs and releases transactions and checks your balance.
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#2711

Wallets store private keys, Create and sign transactions, Broadcast transactions and Show your coins but it doesn’t save coins.

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#2712

Bitcoin wallets initiate transactions using a private key (encrypted) and sending this transacting to the nodes which wait until the miners put the transaction in the blockchain. When the wallet receives funds, it notifies you. There are different types of wallets: paper wallets, hosted wallets, USB wallets.

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#2713

A bitcoin wallet stores private keys, creates, signs and broadcasts transactions to the network. When a transaction is received, it reads the blockchain and notifies me I have received funds.

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#2714

Wallet stores your private key - it will sign and create a transaction and broadcast the transaction to the network - when you receive funds, the wallet informs you that you have the ability to spend. Wallet does not house the bitcoin - there are no coins just that you signed the New transaction and everyone updates their database

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#2715

Wallets do not actually store any coins. Wallets are only storing your private keys. When you send or receive cryptocurrency it will update the blockchain database.

2 Likes
#2716

A Bitcoin wallet is used to store private keys which can then be used to create and sign transactions and be broadcasted to the blockchain. Depending on the wallet these things can vary from just storing the key to completing the whole transaction process.

2 Likes
#2717

Describe in short what a bitcoin wallet does.

  • A bitcoin Wallet has a Private key which generates a public key that is shared with others to send and receive bitcoins.
  • when sending a bitcoin, a wallet creates a transaction +digital signature +public key and broadcasts it to nodes (Computer connected to network, which has a copy of public ledger that records all the transaction) to confirm the transaction. Miners that are inherently running the node add the transaction to a blockchain which confirms the transaction
  • Wallet do not store bitcoin, bitcoin are stored in the ledger/blockchain
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#2718
  1. A bitcoin wallet stores a users private key. It signs transactions on the blockchain with the user’s private key which in turn propagates the transaction through the network of full nodes which each confirm the signed transactions on their ledgers. Confirmed transactions are then placed in a block by a miner to be added to the blockchain.
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#2719

Bitcoin Wallet Answer

  1. A “wallet” in the Bitcoin ecosystem solely stores a user’s “Private Key”. That “wallet” can initiate, sign, and broadcast transactions to all the different nodes on the network. A “wallet” can also receive funds and notify the user by reading the Blockchain.
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#2720

A wallet stores your private keys and gives a digital signature when making transactions.

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#2721

Describe in short what a bitcoin wallet does

A (non-hosted) Bitcoin wallet holds your private key, allowing you to create and sign transactions. If the wallet is part of a full node, it will also hold a copy of the full blockchain, but more typically, it will simply query the blockchain to check you have sufficient funds to cover the transaction. The latter is the case with hardware and software wallets.

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#2722
  1. Describe in short what a bitcoin wallet does.

A bitcoin wallet stores your private keys and signs transactions.

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#2723

1- Store your private key not coins. It reads the blockchain and uses your private key to generate the signature for a transaction.

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#2724

A bitcoin wallet stores your private keys, which allows you to create and sign transactions and broadcasts that transactions.

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#2725
  1. Describe in short what a bitcoin wallet does.

A bitcoin wallet is a piece of software program that stores the private key and its related public key. The wallet facilitates sending and receiving bitcoins, and holds the user’s bitcoin balance. When the user transfer bitcoin to someone, the wallet creates a transaction, digitally signed it with the private key to prove its ownership and then broadcast it to all the nodes in the blockchain network.

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#2726
  1. a wallet is simply creating and holding your private key. because it has access to this private key, it’s also able to sign/validate a transaction
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#2727

A bitcoin wallet:

  • stores private keys
  • creates and signs transactions when sending bitcoin
  • broadcasts the signed transaction to the network of nodes
  • reads the blockchain when receiving bitcoin
2 Likes
#2728

Homework on Role of Wallets – Lesson 6 – Questions

Describe in short what a bitcoin wallet does?

A Bitcoin Wallet: = just a database that

  1. Stores your private keys
  2. Creates and signs transactions when you send bitcoin
  3. Broadcasts the signed transaction to the network nodes
  4. Reads the blockchain and notifies you when funds are received
1 Like
#2729
  1. A bitcoin wallet stores your private key, uses it to create and sign a transaction, then broadcasts that transaction to the network, all the while checking with the database to make sure there are enough funds to send.
1 Like