1. Describe in short what a bitcoin wallet does.
A bitcoin wallet stores your private keys. You can use it to generate transactions (send or receive BTC) and to digitally sign the transactions using your private key. The transactions will be broadcasted to the network where then it will be checked for validity by nodes and ultimately added to the blockchain by miners. When the transaction is confirmed (added to blockchain) your wallet will read the updated blockchain and notify you of the available funds to spend.
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- Stores private keys, creates transactions, signs transactions with keys and broadcast transactions to the network.
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A bitcoin wallet holds your private key(s). It communicates with a node when you want to spend or receive bitcoin. A bitcoin wallet also allows you to sign a transaction and communicate with a node to see your current balance.
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A Bitcoin wallet holds your private key and creates & signs transactions, which are broadcast to the network,
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Ans.1)
A bitcoin wallet is designed to perform various functions:
a) It can create a unique private key (Digital signature/decryption)
b) It can create a unique public key derived from that private key (Used for encryption)
c) It can send an encrypted transaction to a recipient (Private key digitally sign)
d) It can receive an encrypted transaction from a sender (Private key decryption)
e) It can receive the block-chain ledger record pertaining directly to this specified public key address (ledger balance)
f) It can keep your digital assets safe and unaffected from a traditional monetary or economic correction
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Hi,
I have question.
What happened if someone write a wrong Public address (No {not yet} existing wallet) and send some bitcoin to it?
Is there some safety (I mean active database with active wallets so our wrong transaction never get to mempool etc.) or it is going to be UTXs till someone get this wallet with this Public address?
Thank you for answer
Hi Scottie,
What do you mean, sends to the blockchain? Do you mean mempool?
I do not know so I am asking.
Thank you for your answer
Wallets store private keys; when sending btc they will create and sign the transaction and broadcast the transaction to the network nodes; also when receiving btc the wallet will read the blockchain and update your spending balance.
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- A Bitcoin wallet stores your private keys so you can create transactions and sign them to prove to the blockchain that you were the one who made the transaction.
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Addresses do have a checksum that check if the address correct. However if you for example send funds to a correct address that no one owns, the funds would be locked there.
In theory all addresses in fact already exist, it is just so that no one generated a private key yet that points to that address. If you know what I mean 
He probably meant to the blockchain network, which would mean it would propagate to other nodes that would store it to their mempool.
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Thank you Alko89.
Well explain!
So in the future there could be another “Gold rush”=Bitcoin. People will look for these private keys…
But mathematically it make no sense since the probability to find generated a private key is VERY VERY tiny.
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That is correct, it is infeasible for someone to accidentally generate the corresponding private key, one would have to be extremely lucky.
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- A wallet essentially is like a digital keychain that keeps all your keys secure and allows you to sign transactions so that you can spend your crypto and also checks the blockchain for updates to see if you have received any crypto.
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1- A bitcoin wallet send and receive transaction it send transaction signed with your private key. and check the blockchain to see if you received any coin.
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A bitcoin wallet creates, signs and receives transactions on the bitcoin network.
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1 - A Bitcoin Wallet hold only your private keys
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- It sends and receives your transactions by the blockchain, then it is confirmed my the record on the blockchain.
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The BTC wallet holds the private keys, can sign transactions, and depending on type of wallet can also run as a full node holding a fully copy of the blockchain.
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Hi Vratko,
When I said send to block chain, I meant that the wallet will broadcast your transactions to the nodes (computers) on the network it can communicate with and they will validate the transactions and place in their Mempool (list of unconfirmed transactions) whilst awaiting confirmation. The transaction is only moved out of Mempool when a Miner decides to append the transaction to a new block which has been confirmed by the network.
For info’ - all nodes in network store unconfirmed transactions in their own Mempool and Miners normally select transactions with highest fees and put them in the next block - also it is important to remember that fee is based on cost per byte and not value size of transaction.
Hope this makes sense,
Best regards,
Clarke
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