Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#3712
  1. Describe in short what a bitcoin wallet does.
    1. Store a private key
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#3713
  1. Describe in short what a bitcoin wallet does.

A1 - A Bitcoin wallet stores the private key and public key; the private key makes it possible to sign; carries out the transaction and broadcast it to the Bitcoin network.

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#3714

A bitcoin wallet stores your private keys, it can create and sign transactions.

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#3715
  1. Describe in short what a bitcoin wallet does.
    A wallet stores your private keys and allows you to sign transactions.
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#3716

Describe in short what a bitcoin wallet does.

A bit coin wallet stores the private key to access the bit coin, create public key for transactions, sign the transactions, broadcast the transactions and read transactions.

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#3717
  1. Describe in short what a bitcoin wallet does.

A BTC wallet does not hold or store any coins. It merely is a private key (private/public key cryptography) that is used to sign transactions and broadcast those transactions to the network. It is also able to read the network and check your account balance if you will.

There are different kind of wallets. Online/offline wallets (hot/cold storage) and to make an extra category, hosted wallets.

It is my understanding, that wallets do not store the full copy of the database, it is only a ledger of transactions, from and to that wallet. Only Nodes and SPVs store a copy of the database. Where Nodes (every Miner is a Node but not every Node a Miner) store a full copy and SPVs (like a smartphone) store only a partial copy of the database.

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#3718

It is my understanding, that not every wallet stores the full copy of the database, it is only a ledger of transactions, from and to that wallet. Only Nodes and SPVs store a copy of the database. Where Nodes (every Miner is a Node but not every Node a Miner) store a full copy and SPVs (like a smartphone) store only a partial copy of the database.

Correct me if I am wrong…

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#3719

The wallet only store the keys and initiate txs. A full node stores the ledger to which the wallet can connect. :slight_smile:

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#3720
  1. Describe in short what a bitcoin wallet does.
  • Stores private keys, create & sign transactions, broadcast the transactions, reads the blockchain to confirm if transactions can be made.
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#3721

Q1. 1. Describe in short what a bitcoin wallet does?
A1. stores your private keys and public keys. signs and broadcast transactions.

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#3722
  1. Describe in short what a bitcoin wallet does.

It reads transaction in the blockchain and
can create and sign transactions, then broadcast it to the network.

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#3723

The main thing a bitcoin wallet does is store your private keys that sign transactions in order to broadcast a transaction to the network

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#3724

In short there are many different types of bitcoin wallets but they are for keeping your bitcoin and saving your private keys and keeping those secure from anyone else.

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#3725

For receiving and sending btc too

#3726

A bitcoin wallet is a not physical item, but a software program (digital wallet) which stores or contains a private key. The key corresponds with the address of the wallet. It also creates and signs transactions and broadcasts transactions. When someone receives founds, a wallet also is able to “read” blockchain/transactions.

Can we say that wallets generate a public key?

And the second question. I have trouble understanding the difference between a full node and a miner? Could sb explain that, please?

#3727

They only save the keys. The coins are stored on the blockchain :wink:

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#3728

Most of them do yes. :slight_smile:

A full node stores the full blockchain data and verifies incoming transactions while a miner also mines new blocks.

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#3729

Most of them do yes. :slight_smile:

A full node stores the full blockchain data and verifies incoming transactions while a miner also mines new blocks. :slight_smile:

2 Likes
#3730
  1. Describe in short what a bitcoin wallet does.

A Bitcoin wallet stores your private keys, verifies your Bitcoin assets and receives and or sends Bitcoins/Satoshis. The wallet creates your public address.

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#3731

A bitcoin wallet is something that store your private key to sign the transactions on the blockchain. Or, it can be the certification of you having the fund on the blockchain.

  • storing private key
  • create public key
  • sign transactions
  • braodcast the transaction
  • read transaction
    There is no coins inside the wallet.
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