Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#1324

A message is sent to all nodes on the blockchain instructing to update their ledger to the most recent block.

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#1325

The wallet holds your private keys that is needed to sign transactions and check your balance on the blockchain.

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#1326
  1. In short: stores your private keys not any coins. *Coinbase/other accounts are not “wallets” but “hosted wallets” which means that you communicate with your “wallet” at the Coinbase server which stores your “wallet”.
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#1327

Well kind of, but nodes are connected in a network, hope you’re not confusing that with the blockchain itself which is a database :slight_smile:

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#1328

a btc wallet is an entity that stores private keys which can sign and verify transactions in blockchain

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#1329
  1. Bitcoin wallet stores the private key>creates transaction > sign it > send it to nodes to read the blockchain.

Does it generate the public key?

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#1330

A Bitcion wallet holds your private keys that signs transactions when sending BTC then broadcast them on the internet when receiving BTC the wallet will notify you and read the blockchain.

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#1331

A bit coin wallet just holds on to one’s private key, there is no coin or money in the wallet, just the private key to sign request to unlock the data (representing your coin holding) on the distributed ledger residing on the different nodes on the network. It sends and receive request from the nodes and propagates its transactions to the nodes.

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#1332

Yes. It also generates the public address.

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#1333

A wallet can have multiple private keys. Most wallets do this as it increases privacy. :slight_smile:

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#1334

A wallet is used to store your private keys. Constructing, signing and broadcasting transactions to the network for processing. edit thanks @Alko89

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#1335

Hi :stuck_out_tongue: We meet again! Wallets don’t hold any balance or UTXOs. These are stored on the blockchain. Your wallet only holds the keys which you can use to unlock your funds :slight_smile:

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#1336

thanks, simple and effective explanation, understood , i think lol

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#1337

That’s why you are here, to make mistakes and learn from them :wink:

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#1338

My Answer:
Wallets store your private key and when you want to send BTC/Cryto it will create, sign, then broadcast. When you receive funds, the wallet reads the Blockchain, then notifies you you have funds.

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#1339

Wallet is the interface between the bitcoin protocol and blockchain ledger that holds your private key which is required to create and sign a transaction for it to be added as a verified transaction on the bitcoin blockchain.

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#1340

The wallet stores your private key that you sign transactions with to prove that you have the right to spend the funds in that wallet. It connects to a node to broadcast a transaction and to check if it received any funds. It can be an software wallet on your phone or computer and it can be a hardware wallet in form of a usb device. It can also be a paper wallet but then needs to be used with a software to send funds.

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#1341

A wallet is simply the public and private key for sending an receiving transactions. It doesn’t actually hold any coins it is just a way to tell the database to move funds from one account to another.

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#1342

Describe in short what a bitcoin wallet does.
A wallet is a application on your device that is storing your private keys. With your private keys in your wallet you can check your balance in wallet. Also you can send a amount of “coins” to another wallet by using your private keys.

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#1343

Correct, but the balance is not on your wallet but stored on the blockchain :slight_smile: you move the funds to a new account.

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