Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#722

Yeah - you are correct. My last sentence was a bit sloppy! Thanks!

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#723

1. Describe in short what a bitcoin wallet does.
Wallets store your private keys and create and sign transactions

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#724

A wallet stores your private key, can sign transaction and display your current amount of funds.

#725

You only need to sign transactions to send bitcoin. Not to receive bitcoin. If someone sends bitcoin to 1 of your addresses, your Wallet can read this information from the blockchain. only your private key can spend it again.

#726

It doesn’t really hold bitcoin, but it just reads the blockchain how much bitcoin your private keys can spend

2 Likes
#727

A bitcoin wallet is the place where you can send and receive your bitcoins.

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#728

Wallet hold private key and creates publick key and is used to sign transactions. It stores ledger or copy and u can check your unspent fonds. There is no fyzical coin inside the wallet.

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#729

A “real” bitcoin wallet stores your private key, from the private key is generated a Pubic key. The wallet allows you to broadcast a btc transaction (thanks to the private key that is signing it) in the network and to receive incoming transaction (thanks to the public key that create upon itself a receiving address).
I said “real” wallet cause in case of Hosted wallet the private key are not in your possession but are in possession of the entity that “Host” your private key in his server or cold wallet (for example an exchange)
Also the wallet doesn’t store “real coins” but basically , by storing your private key and connecting to the network it “calculate” the amount of the funds spendable , this based on all history of verified transactions in the network.

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#730
  1. The wallet stores your privat keys , creates and sign transactions , broadcast the transfer , receiving transactions , reading the blockchain
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#731
  1. A bitcoin wallet Stores your private key, create public key, sign the transaction, broadcast the transaction and read transaction. There are no coins inside the wallet.
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#732

Bitcoin wallet holds your private key, creates and broadcast transactions.

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#733
  1. Stores your private key to sign transactions when asked for. It can also check your funds by going after Unspent TransaXion Outputs on the ledger and summing them up.
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#734

1; A wallet holds your private keys which are used to sign transactions and broadcast the transaction to the network. The wallet does not store any keys (as there are none)

  • Wallet holds private/public key
  • Send/Receive Bitcoin
  • Creates transaction – a sign with private key.
  • When signed the transaction goes to the blockchain
    a. Unconfirmed when all nodes check the transaction and validates the transaction
    b. Miners is the only that can add transactions to the blockchain (a miner is also a node)
  • Miners put the transaction to the block and then authenticated. Then all nodes will get update and the transaction is in all nodes hence the blockchain.
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#735

It is important for you to know that the wallet holds you private key/keys. It is like a heart of your funds. With it you can send bitcoin you received. The wallet itself must do a good job of keeping it private, otherwise you can risk losing all of your funds due to it being stolen.

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#736

It stores your private key to sign your transactions. There are no coins.

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#737

Glenn_CostaRica

1. Describe in short what a bitcoin wallet does.
A Bitcoin wallet is a software system that store private keys – being able, in many cases, also to generate these private keys. It also can use the private keys to sign transactions through digital signatures, and can broadcast the signed transactions to other nodes through the node it is connected to. Wallets can also let the user verify the state of his past transactions including incoming transactions where the user has been recipient of funds.

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#738

A wallet holds a record of the amount of “coin” you own offline where it is safe from being hacked and stolen. I maintains your private key and creates a digital transaction when you move coin from the wallet to another party.

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#739

stores your private keys which you can use to release your unspent funds

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#740

Wallets store private keys, create public keys, and can both send and recieve transaction information.

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#741

Most wallets are designed to do what you’ve stated here, not only Bitcoin! There are different kinds of wallets as you will see.

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