Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#1124

Homework on Role of Wallets - Questions

Describe in short what a bitcoin wallet does.

  1. A bitcoin wallet Eco system involves a few things. A bitcoin wallet stores your Private Keys. Through the Private key it signs transaction and then your wallet broadcasts out the network. Your bitcoin wallet also stores the blockchain data which in return is how your bitcoin wallet receives funds. This is not always the case with SPV type wallets which it refers to node with a full record of the blockchain to confirm transaction on the blockchain.
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#1125

A bitcoin wallet stores your private key and use it to sign transactions ,to get your balance and notify you when you receive funds , use it to access your funds.

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#1126

a bitcoin wallet holds your private key. For spending bitcoin you have to sign a transaction by the privat key with that wallet application.
By using a Node-Wallet or a client leigtweight Wallet + SPV, the signed transaction will be spread to all nodes.
So a wallet is an interface between your private keys and all nodes. If the signed transaction is valid for all nodes a miner is able to confirm the transaction and broadcast the transaction within the new block.

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#1127

A bitcoin wallet is used to:

  • store your personal private key and public key
  • create and sign personal transactions,
  • broadcast your transactions to the nodes network for verification,
  • access and read the blockchain to notify you when receiving transactions

In fact it does not store any such coins.

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#1128

A bitcoin wallet is an application that plays a role in managing your bitcoin transactions. It holds your private key. When you send bitcoins it creates a txn, signs it and broadcasts the txn to the bitcoin network. Since the wallet is on your computer, it is vulnerable to malware which could steal your private key. Wallet can also be implemented as a USB hardware device. The HW wallet works with an app on your computer to manage bitcoin txns. Your private key on the device is never exposed to the internet.

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#1129

What can you say about private keys?

#1130

Every public key has a private key. So wallet can have multiple key pairs.

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#1131

Corrrect, but the private key actually signs the transaction that is then broadcasted to the network! The public key is the one used to receive funds.

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#1132

Signature is more related to the result of signing the transaction with your private key.

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#1133

Describe in short what a bitcoin wallet does.

It stores your private keys.

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#1134

A BTC wallet stores the owners private keys & sends/receives transactions by querying the Blockchain

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#1135
  1. Describe in short what a bitcoin wallet does.

a wallet manages via your private keys how you transact with the blockchain. spv (simple verified payment) is compact mostly on phones and query nodes.
core node wallet has full blockchain on it.

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#1136

A bitcoin wallet stores your private keys. It signs transactions and broadcasts to the network for verification from full nodes. There are no coins stored in the wallet.

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#1137

A bitcoin wallet is used to store the private keys and be used to interact with the ledger such as construct sign the signature and broadcast the transaction,

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#1138

Muchas Gracias me confunde un poco a veces bro!

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#1139

Bitcoin Wallet Is used to keep a private key, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. The wallet also queries the full nodes to get total funds held by the private key.

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#1140
  1. It has a private which will sign all your transactions and broadcast them into the blockchain.
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#1141

It stores private Keys, create and sign transactions and broadcast the transaction to the world or notify you if you receive funds

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#1142

A bitcoin wallet does not hold coins, but rather holds private keys and signs transactions

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#1143

The main purpose of a wallet is to store your private key, it doesn’t store any coins. There are different types of private keys such as paper wallet, hardware wallet, node, spv or hosted wallets. The safest wallet is the paper wallet and the hardware wallet as they are offline so are not exposed to hacks.

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