Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#1204

And what can you with these private keys Emmet?

#1205

Correct. You can have as many private keys as you want. And each private key will be used to generate one public key.

#1206
  1. Describe in short what a bitcoin wallet does.
    A: A wallet stores your private key, creates, sends / broadcast tx. Reads blockchain.
2 Likes
#1207

A bitcoin wallet generates a set of keys that are private and public. Private key is where the no no zone is for no one allowed to know. Public is what you are allowed to share if you choose to. Since the blockchain is opensource. The public key can be used to receive bitcoin or you can use someone elses generated key to send bitcoin to them. Always remember if you dont hold it…you dont own it. So keep track of your keys and never share whats meant to be private. XD DUUUUKA!!!

1 Like
#1208
  1. Bitcoin wallets store private keys. When sending bitcoin, the wallet creates and signs the transaction. The wallet broadcasts this to the network. When receiving funds, the wallet will read the blockchain, then notify you of the transaction.
2 Likes
#1209

What does a bitcoin wallet is storing the private key, create and sign transactions then broadcast them to the network, when a fund is received the wallet check the bloackchain and notify us that there is a fund to spend.

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#1210

Your private keys enable the wallet to find all your UTXO’s - its adds those up to calculate your balance.
Your private keys are also used for signing transactions before they are sent.
Your private keys are also used to generate public keys which are then used by other parties to verify signatures that were signed by the private key

3 Likes
#1211

Describe in short what a bitcoin wallet does?

Wallets holds your private keys. It creates and sign transaction with your private key & then broadcast them to the network of the nodes. Wallet doesn’t store the coins.

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#1212

Describe in short what a bitcoin wallet does.

Bitcoin wallet storing your private keys, you can also send and receive funds from and to wallet.

1 Like
#1213

it stores the privat key and can sign transactions

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#1214
  1. Stores your private keys, create and sign transactions, broadcast transactions to the network and read the block-chain.
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#1215

Wallets store private keys. When you want to create and sign a transaction it will broadcast transaction to the network. When you receive funds your wallet will read the blockchain and notify you that you have funds to spend.

There are no coins in bitcoin or in your wallet, which only stores private keys. Each node has the whole BTC database. All transactions that have ever happened. When you send/receive BTC the nodes will append the data in the blockchain ledger and this will be confirmed in your wallet…

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#1216

a bitcoin wallet stores your private keys and use them to generate public keys and to create and sign transactions and broadcast them to the network, it also use the private key to check for unspent transactions in order to update your balance.

1 Like
#1217
  1. Describe in short what a bitcoin wallet does.

A bitcoin wallet stores the private key. If it’s an SPV, a full node or a hardware wallet it can also read the blockchain to determine the funds which are spendable by this private key, sign transactions with it and broadcast them to the network.

1 Like
#1218
  1. The wallet is use to store private keys it also has a copy of the ledger to broadcast transactions to the network
#1219

Yes, thank you. I didn’t clearly distinguish and I believe the question was just about bitcoin wallets in general. Not all wallets are hardware wallets like Ledger nano or Trezor! There are also paper & hosted wallets, correct? Just to be sure, what I understood from the “Hosted Wallets” video, cold storage wallets (AKA hosted) are really apps created by exchanges where their servers are keeping your crypto & you are not actually storing your private keys- yes? However, when I Googled “cold storage wallets” I got something saying hardware wallets are cold storage wallets. Confused!

#1220
  1. Describe in short what a bitcoin wallet does.

A Wallet stores your private keys. It creates, signs and broadcasts transactions. It reads the blockchain to verify what you can spend.

1 Like
#1221
  1. A bitcoin wallet can send and receive funds (through private keys verification, signing transaction and then broadcasting that transaction to the full node)
1 Like
#1222
  1. Stores Private Keys, creates and signs transactions, sends and reads transaction it recieves.
1 Like
#1223

Not all wallets have a copy of the ledger, this depends on the type of node. Correct about private keys, and they are used to sign transactions, and then broadcast them.