Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#402
  1. Describe in short what a bitcoin wallet does.
    A wallet stores your private keys. It can also be used to send and receive cryptocurrencies.
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#403
  1. In short, a bitcoin wallet stores your private key, signs transactions and broadcast the transactions. Thereā€™s actually no coins in the wallet, or anywhere on the blockchain.
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#404

A bitcoin wallet stores the users private encryption key, creates and signs transactions, broadcasts transactions to the nodes in the blockchain, and also reads the blockchain and notifies the user of any incoming transactions. A wallet does not contain any coins.

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#405

It basically gives you access to your funds. This happens with your private key, the wallet can look up what funds on the blockchain belong to your private key. You can also send money and the wallet signs a transaction and broadcasts it to all of the nodes. The transaction gets confirmed when the miners include it in the next block.

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#406
  1. Holds your private keys, creates and signs transactions.
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#407

A bitcoin wallet stores our private keys. If we want to send money our private key is used to sign transactions to identify us before broadcast it to the blockchain network. If we want to receive money, the wallet can read the blockchain and notify us that we have funds to spend.

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#408

Answer

  1. A bitcoin wallet stores your private key and signs transaction to broadcast them into the network. When you receive funds your wallet read the blockchain and notify you that you have funds to spend. There are no coins inside a walletā€¦ There are some different types of wallet: full node, SPV, paper wallet, HW wallet and hosted wallet (the latter is not your wallet, but the wallet of one exchange).
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#409

A wallet holds your private key and when a node sends a transaction request the wallet uses the private key to sign the transaction. It also uses your private key to sign your own transactions and send them out to the node for verification.

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#410

it holds your Private Key (generate your Public key)
and signs the transactions to broadcast them to the network

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#411

Bitcoin wallet is simply is a private key with which you sign your transactions or create transactions. Unlike the name it ainā€™t a wallet as there are no coins in bitcoin to have in the wallet. It seems quite confusion at first but makes sense if you go deeper.

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#412

A wallet provides you an interface to hold your private keys (to the blockchain database).

A bitcoin wallet does not hold bitcoin ā€¦ it holds the private keys to your funds. Your wallet private key creates your public key, so that people can send bitcoin to you. If someone sends you bitcoin they send it to your public address. You can then access this address using your private key.
Sending bitcoin from a wallet - Your private key is used to sign a transaction to send funds to a recipients public address (created by their wallet private keys).

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#413
  1. Bitcoin wallet does the following :
    Store your private key, create and sign transaction and distribute it to the network as well receiving transaction ( reading the blockchain).
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#414

A Bitcoin wallet holds your private keys to gain access to your bitcoins.

#415

A bitcoin wallet stores private keys which you need to gain access to your bitcoins.

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#416

A bitcoin wallet stores the private key.

It creates and sends transactions to the network to put in the blockchain ledger

and it reads your balance.

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#417
  1. Describe in short what a bitcoin wallet does.
    A wallet stores the private key, signs transactions and broadcast them to the network.
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#418
  1. a wallet stores your private key, creates transaction, broadcasts those transactions and can read transactions.

there are 3 types of wallets

  1. paper wallet ( actual piece of paper on which you write your private key)
  2. hard wallet ( also stores your keys offline )
  3. Hosted wallets, like coinbase.
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#419

The Bitcoin wallet is able to provide you with your private key and stores your balance of Bitcoin. It also is able to receive transactions that will require a digital signature using your private key.

#420
  1. A bitcoin wallet stores your private keys. Through your wallet you can sign for transactions. Signing through a wallet allows all your sensitive data to remain off line and therefore much safer. In other words the wallet shields/hides your private keys from the internet.
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#421

You donā€™t need to sign a transaction that is send to you. Only when sending a transaction you need to sign it in combination with another public key in order to move control over a batch of bitcoins to a new user

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