Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#1384
  1. A bitcoin wallet stores your private key
  2. Creates a transaction at your request
  3. Signs that transaction with your public key
  4. Releases that transaction to the bitcoin network
  5. Keeps a running summary of all of these created transactions.
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#1385

Describe in short what a bitcoin wallet does. a wallet stores your private keys, and is used to sign transactions.

2 Likes
#1386

uses a private key to sign transactions. (really short) :slight_smile:

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#1387

Describe in short what a bitcoin wallet does.

A wallet is a placeholder protocol that enables the users with the private (and public keys) to digitally sign and transmit transactions over the network.

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#1388

A wallet reads the blockchain, creates, signs and broadcast transactions across network

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#1389

A wallet stores you private and public keys which is used to broadcast and receive transactions

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#1390
  1. A bitcoin wallet stores your private keys and uses them to sign transactions.
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#1391

Bitcoin wallet is the storage of your private key or keys used to sign messages or transactions. The wallet can transmit the signed transaction or message to the network.

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#1392

Homework on Role of Wallets - Questions

  1. Describe in short what a bitcoin wallet does.

Stores your private keys that are used to verify the existence of funds and send/ receive them.
A wallet creates and signs a transaction then broadcasts it to the network by contacting multiple nodes.
There are different kinds of wallets but those which belong to exchanges use funds from multiple users and can not be considered safe or even uniquely your own. *edit a word
To have absolute control and safe storage of your bitcoin you must have an offline wallet.

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#1393
  1. A wallet stores a private key, some wallets can also
    a) create and sign transactions
    b) broadcast transactions
    c) read the blockchain
    d) receive funds
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#1394

Great and very detailed answer! :slight_smile:

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#1395

Transactions are signed using your private key :slight_smile:

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#1396

Hmmm, I wouldn’t consider those types of wallets your own :slight_smile: there is a saying in the blockchain space that says: “Not your keys, not your Bitcoin”

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#1397

Haha. Well it seems I didn’t type a very important word there which is ‘not’

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#1398

Store private and public keys of the address where transactions originate

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#1399

Thank you very much Alko :slightly_smiling_face: :+1:
Much appreciated!

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#1400

Describe in short what a bitcoin wallet does.

The walltet stores the private keys. Create, sign and broadcast transactions. Read the blockchain to calculate the balance.

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#1401

A wallet calculates your balance by obtaining your unspent transactions from the full nodes, validates any new transaction that you want to initiate (if it makes sense) and broadcasts your new transactions to the network of nodes and miners.

#1402

1. Describe in short what a bitcoin wallet does.

A bitcoin wallet stores all private keys which are used to sign messages before publishing.
Signing a message allows the nodes to verify that both the signature and addresses of the
transactions in the message, belong to the same private key.

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#1403

When receiving bitcoin, your bitcoin (utxo) is linked to your address. This address is generated from a public key, that is in turn generated from your private key, and your wallet stores this private key. The private key from your wallet is used to sign messages that you broadcast. This signature is required by the nodes/miners to verify that the address of the bitcoin (utxo) in the message, does in fact belong to the same private key, and in doing so, ensures that you can only send bitcoin that you own.

Wallet => private key => public key => address => bitcoin (utxo)

Hope the above makes sense

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