- bitcoin wallet is used to store private keys, create and sign transactions, receive transactions, broadcast the transaction, and read the transaction. There are no actual coins in the wallet.
1 Like
A Wallet stores the private key. A wallet initiate a transaction by sending it to the nodes in the network
1 Like
a wallet stores your private key. it signs transaction with this PK. Its checks your balance
1 Like
It doesnât store any Bitcoin, just the keys 
1 Like
Hi @Buckwheat and @John_Montagne SPVs are technically considered as light nodes, since they communicate with full nodes. They do also contain a wallet for your keys
1 Like
Homework on Role of Wallets - Questions
- Describe in short what a bitcoin wallet does.
It alow you to have your bitcoin âdeposited onâ it hold the keys to your bitcoin addresses allowing fo you to spend (transfer) your bitcoin in between addresses signing and creating transactions and transmitting it to the pool.
1 Like
thank you! so they communicate only to see if they can spend right?
- A Bitcoin wallet stores your private keys and can be used to create and sign transactions and read your balance on the ledger.
1 Like
Describe in short what a bitcoin wallet does.
a bitcoin wallet is a storage of private key.
1 Like
Describe in short what a bitcoin wallet does.
Wallets give you a unique address that proves ownership of your coins.
A combination of the recipientâs public key and your private key is what makes a Bitcoin transaction possible.
1 Like
Homework: Role of Wallets
- Stores private /public keys and creates, signs and sends transaction to the blockchain
1 Like
Coins are not actually stored in a physical wallet, as cryptocurrencies do not exist in a physical form.
Instead, the blockchain consists of transactional records that details which private and the public key has control over the funds. Essentially, each wallet has a unique private and public key.
A public key.An alphanumeric address that mathematically links to your acct, however
, its âhashed versionâ.
A hash function allows a sequence of letters and/or numbers (called an âinputâ) to be encrypted into a new set of letters and/or numbers (called an âoutputâ).*
This adds an extra layer of security and ensures that your wallet cannot be hacked.
Wallets also contain a private key that allows you to access the funds that are related to the crypto wallet address.
The wallet is connected directly to the blockchain, so it allows you to submit transactions to the ledger. However, since the crypto wallet is the protocol that generates your public and private keys. Without it, you wouldnât be able to access your funds.
To get a better understanding of this relationship, think about walking into a store and paying for goods using a debit or credit card. There is no physical exchange of money between you and the store. However, by entering your private pin number, you verify that you own the funds and so they can move the funds from your account to the account of the store.
This is the same as a cryptocurrency wallet. By entering your private key, you verify that you own the coins and then you can transfer them to someone else. That is the only way that the coins can move from person A to person B.
1 Like
A Bitcoin wallet interacts with the blockchain using private and public keys in order to send or receive Bitcoin.
1 Like
A bitcoin wallet stores the private key, signs transactions with it, send bitcoin, read blockchain transaction, receive bitcoin, and notify you.
1 Like
Wallets store your private key. Can communicate with the blockchain to verify balance of funds you have stored. Uses your public and private keys to send and receive transactions.
1 Like
It stores your private key, and check from the blockchain if you have the amount you are wanting to do the transaction with
1 Like
Bitcoin wallet stores private keys which are used to create and verify transactions on the blockchain
1 Like
it keeps your private key.
1 Like
There is different types of wallet such as Hardware wallet , Hosted wallet , paper wallet .
1)Hardware Wallet - It will connect to the computer through a USB and has your private key but doesnt have the entire blockchain running on it . It never allows your computer to touch your private key . So whenever any transaction happens , your computer will ask for the digital signature to the wallet and the wallet sends bank the signature and then the computer verifies it and send it to further for confermation .
-
Papar wallet - It is the safest method to store private key as it is in paper form and your private key is hand written on the piece of paper . and it is not exposed to the internet . But whenever you have to do any transaction , you need to give/write your private key to the chain and thus your private key will then exposed to the internet . So it is always better to discard the paper after every transaction and regenerate the new paper wallet with diff private key .
-
Hosted wallet - It is a wallet on the exchange server and what you are using is just an application given by the exchange . So whenever you ahve to do any transaction , your app wills ask the server to send or receive bitcoins on its behalf .
So overall , the wallet is used to do transation by signing it with your private key .
2 Likes
A Bitcoin wallet provides a private key which can only be seen by you, unless stupidly shared by you with others, and a public key which is used to sign your transaction which is available to be viewed by all in a public database known as a Ledger.
It is important to note that there is no such thing as bit âcoinâ that is stored in your wallet; it is merely the private key that is stored on it.
1 Like