Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#3732

The wallet holds the private key, which is used to create the public key also signs the transaction when we need to send/checks the funds.

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#3733

Homework on Role of Wallets - Questions

  1. Describe in short what a bitcoin wallet does.

A wallet store your private keys
it sign transactions and sends those transactions to the nodes on the network
It read transaction on the network to verify incoming funds.

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#3734

Is a wallet also an application? Or are application assigned to it. if its a paper wallet its jsut a string of numbers. Your private key. So which application uses the Key? is this application own the BTC network? Iā€™m trying to understand hoe the sending and receiving go data happens. There must be an application that connects to the network to do this as a wallet/private key cannot generate an action by itself. the action of sending or receiving data must be coded.

#3735

A wallet holds a users private key and processes transaction requests.

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#3736

  1. Describe in short what a bitcoin wallet does.

    A bitcoin wallet stores your private keys, creates and signs transactions, broadcasts transactions and reads the blockchain. There are no coins on the wallet.

2 Likes
#3737
  1. Describe in short what a bitcoin wallet does.
    A bitcoin wallet holds your private keys and is able to sign and create transactions. It then sends the signed transactions to the nodes on the network. It is also able to broadcast and read the blockchain
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#3738

A Bitcoin wallet stores private keys, signs transactions, reads the Bitcoin network and broadcasts to that network. A wallet can be a software program, hardware device, piece of paper, or an account on a centralized exchange.

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#3739

A bitcoin wallet stores your private keys and creates and signs transactions.

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#3740

A BTC wallet stores your private keys and can generate public keys as well as sign transactions so that from that wallet you can receive and send BTC. A BTC wallet is therefore able to communicate with the blockchain, it does this either directly with or as a node or indirectly via a node from an SPV.

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#3741
  1. Describe in short what a bitcoin wallet does.

It stores your private key, creates and sign transactions and broadcasts to the network

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#3742

A bitcoin wallet holds your private key, that can be used to check your balances, sign transactions and broadcast that transaction to the blockchain.

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#3743

A bitcoin wallet stores your private keys. It creates ands signs transactions. It broadcasts transactions to the network and it reads broadcasts from other nodes within the network which enables it to receive transactions for you.

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#3744
  1. A bitcoin wallet holds your private key and uses them to sign transactions and check your balances
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#3745
  1. Describe in short what a bitcoin wallet does.
    A bitcoin wallet stores your private keys and uses them to sign transactions and checks your balance.
1 Like
#3746

Wallet holds private keys, so that transactions can be signed and transmitted.

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#3747

Describe in short what a bitcoin wallet does.

A wallet stores your funds, more precisely your private and public key which are encrypted by your PC unless it is a hosted wallet. The wallet is connected to the blockchain which then allows you to send and receive transactions.

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#3748

As you have noticed wallets come in many forms. A paper wallet obviously doesnā€™t sign transactions, it has to be imported in an online wallet for you to be able to spend the funds.
The main thing for a wallet is to store keys, most wallets are also able to sign transactions (not true for paper or brain wallets). :slight_smile:

#3749
  1. A Bitcoin wallets store private keys, creates and signs transactions.
1 Like
#3750
  1. Describe in short what a bitcoin wallet does.

Wallets store private keys. When you send crypto, it will create and sign a transaction and them broadcast to the blockchain. To receive, it will read the blockchain. There are no coins in the wallet, just private keys.

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#3751

Thank you so much for your response :slight_smile: Itā€™s very kind of you. Soā€¦ ok, what do you mean ā€œmost of themā€. For example, hosted wallets donā€™t do it, do they?

Okā€¦ so miners and nodes are completely different Personas? Miners on the other hand creates (mines) new blocks in the blockchain, which the nodes keep? Miners are responsible for adding transactions to a block, with the goal of creating a new block with a valid hash that will be accepted by the network -> nodes?

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