Homework on Role of Wallets - Questions

Blockchain and Bitcoin 101
#1504

A bitcoin wallet stores your private key. When sending bitcoin, it creates & signs the transaction, then broadcast the transaction to the network. When receiving bitcoin, it will read the blockchain & notify you that you have received funds.

If you run a full NODE, your NODE will store your private keys (wallet). SPVs also store your private keys (wallet), but no blockchain, so it must query a NODE(s) on the blockchain to execute transactions.

Paper wallets are simply your private keys written on a piece of paper, but because it is offline, you must import the key to an SPV or full NODE to execute transactions.

Hardware wallets (looks like a USB drive or “thumb drive”) are offline also, so to execute transactions you connect (via USB port) to an online application (i.e. LEDGER). It can sign the transactions and broadcast, but never gives the private keys to the computer.

Hosted wallets, such as wallets on Coinbase, etc., you do not store your private keys on these, as you personally have no private keys for these wallets; technically, it is the Company’s wallet (private keys). You simply login and your transactions are managed by the company.

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#1505

A bitcoin wallet sows you your balance wen query the blockchain and sign transactions with your your private key

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#1506

Describe in short what a bitcoin wallet does.
A. a bitcoin wallet stores your private key and creates a digital signature to verify transactions.
It can be Hosted, Paper, or completely off line.

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#1507
  1. Describe in short what a bitcoin wallet does.
    A Bitcoin wallet stores private keys. With your private key you can digitally sign and broadcast transactions. A SPV, which might contain a wallet, can query the blockchain and inform you when you have received a transaction.
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#1509

Accidentally quoted another poster.

A bitcoin wallet stores your private keys, generates private and public keys, calculates your balance from the UTXOs on the network, signs transactions and broadcasts transactions to the network. It does not actually hold any coins or cryptocurrency.

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#1510

Store public and private key.
Creates and sign transactions.
Sends transaction to nodes.

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#1511

Basically it just reads them and doesn’t receive anything :slight_smile:

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#1512

Yea right 
thanks

miĂ°., 15. jĂșl. 2020 kl. 17:24 skrifaĂ°i AleĆĄ Ferlan via Ivan on Tech Blockchain Academy Forum <[email protected]>:

#1513

A bitcoin wallet stores your private keys and uses them to sign bitcoin transactions.

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#1514

A bitcoin wallet stores your private keys, and public keys. Private keys are used to sign transactions. The public key allows the owner send Bitcoin to another Bitcoin user, without a middle man.

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#1515

A Bitcoin wallet generates private keys, public keys and stores your private key (Securely if it’s a cold storage hardware wallet) which is needed to sign transactions. A private and public key (Which the public key is needed to verify the key pair identity) is needed to transact within the database. It will then broadcast the transaction to the network of nodes and miners that uphold the database. When Your wallet receives notification of a signed transaction for received value by a wallet, it will notify you that the balance has been transferred within the database under the control of your private keys.

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#1516

A bitcoin wallet stores the private key, signs transactions, and broadcasts the transaction.

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#1517
  1. A bitcoin wallet holds your private keys and is connected to the rest of the bitcoin blockchain (a distributed ledger). It doesn’t actually store any ‘coins’, it merely connects with the rest of the network and send and receives data accordingly. When a wallet sends bitcoin, its balance is reduced and the rest of the network is informed. The entire distributed ledger then changes to reflect the crediting and debiting of the wallets in the transaction, and then the new data are added to the blockchain for all to see.
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#1518

A bitcoin wallet stores your private keys and signs transactions to make sure they are coming from you .
They may store a full bitcoin node i.e. a full copy of the blockchain or be a spv and check with several full nodes regarding transactions .

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#1519

Are you sure its the public key that does that? :wink:

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#1520

Now I am not sure lol. Help!!!

#1521

Am I wording it wrong. The private key is used to verify or sign the transaction. The public key is used in the sending of transactions?

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#1522

And in order to receive them as well.

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#1523

1.- It’s an application that allow me to sign transactions in order to move bitcoins.

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#1524

A bitcoin wallet provides a place to store you private keys and exchange transactions with other users; using your private keys and signatures, to complete and broadcast the transactions. It never stores the bitcoins but rather, it is a virtual place to handle the transactions.

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