Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#3391
  1. Describe in short what bitcoin wallet does.
    It provides private keys, it signs transaction
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#3392

A Bitcoin wallet holds your private key to sign transactions that you send or receive bitcoin. When you make a transaction, it is thus sent and broadcasted to the nodes (unconfirmed) which are then sent to the miners who place the transactions into a blockchain to confirm the transaction. When you receive bitcoin, the wallet holds the private key to sign the transaction to receive.

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#3393

A bitcoin wallet stores your private key , you can sign transactions with your private key.
From your private key a Public key will be generated wich will generate a bitcoin-adress.
With this adress you can receive funds on to your bitcoin wallet.

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#3394

Bitcoin wallets - they do not store any coins, however when you want to send bitcoin will create and sign a transaction then broadcast it back through a specific node, where the transaction gets validated after is broadcast to the blockchain (the database).

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#3395

A bitcoin wallet stores your private keys and also creates your public keys to allow transactions such receiving and sending bitcoin.

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#3396
  1. stores private keys and signs transactions
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#3397

Bitcoin wallets create and sign transactions. They also generate the private keys and broadcast the transaction to the blockchain.

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#3398

A bitcoin wallet stores your private keys and signs off on transactions whilst holding a copy of the blockchain.

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#3399

The wallets:

  1. Store your private key
  2. Calculates UTXOs
  3. Build transactions (decides outputs and fees) and sign them with your private key
  4. Broadcast the transaction
  5. Read blockchain
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#3400

Bitcoin wallet stores private key and allows digital signature for transaction to send and receive bitcoin on a public ledger. There is no bitcoin stored on the wallet.

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#3401
  1. Describe in short what a bitcoin wallet does.
    A Bitcoin wallet stores the private key used to access the coins you own stored on the blockchain. It also serves to initiate transactions across the blockchain, whether itā€™s generating a public key to receive funds, or providing permissions to send funds to a recipient. The latter is done by constructing a transaction, signing the transaction and broadcasting it to the blockchain nodes. It is important to note that no coins are actually stored on your wallet. Rather, it stores the encrypted access, right or private key to the coins on the blockchain.
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#3402

A BTC wallet is a computer or mobile app that creates a private key, a public key and a btc address. It initiate a transaction that is signed by the private re key and then broadcast to the networks of nodes. Then nodes verify the transactions and then a miner confirms it by adding it to the blockchain. And the broadcast it again to the nodes

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#3403
  1. Describe in short what a bitcoin wallet does.

A bitcoin wallet hold your private key, there is no coins, itā€™s only database in blockchain. Wallet can sign your transaction, send or take coins to your wallet

P.S.
Can anyone please explain what are the differences between NODE and SPV? Why SPV donā€™t have acces to blockchain?

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#3404

Describe in short what a bitcoin wallet does.
A bitcoin wallet is not actually storing coins but instead the private key to sign transactions.

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#3405
  1. Describe in short what a bitcoin wallet does.
    A. A bitcoin wallet stores your private keys and uses them to sign transactions.
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#3406

SPVs do have access to the blockchain, they donā€™t store the entire chain like a full node does. Its also called a light node that can function on a mobile device for example. :slight_smile:

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#3407

A Wallet holds your private and public keys. It does not store any value/coins.
A wallet will digitaly sign transactions.
There are different types of wallets:

  1. Software wallet on a pc or mobile phone.
  2. Paper wallets.
  3. Hardware wallets (USB Ledger)
  4. Hosted wallets sush as crypto.com , binance, coinbaseā€¦ (not your keys)
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#3408

Describe in short what a bitcoin wallet does

Wallet holds Private keys
It creates a signature for transactions
It broadcast the transactions tu nodes and miners
It read the blockchain

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#3409

Thank you! I got it. :innocent:

#3410
  1. A bitcoin wallet contains your private key that can be used to sign transactions and check your balance.
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