What is a blockchain wallet?
Just like a regular cash wallet, a blockchain wallet is a digital software that lets a user store and manages multiple blockchain assets. It comes packed with many features such as transaction records, charts, and social features. It lets you transact in cryptocurrencies and converts them into a user’s local legal money. The wallet is provided by Blockchain. The blockchain wallet also charges dynamic fees which are based on different factors.
Features of Blockchain Wallet:
1. The wallet allows users to interact with other wallets on the same or other blockchains. Also, functionality to manage the assets in safety.
2. For maintaining security, all the transactions are cryptographically assigned in the wallet.
3. The wallet can be accessed on any computer, device, smartphone, or as extensions and plugins.
4. While a user can download and install the free software, wallets are personal entities. Thus, a user needs to go through the setup process, provide an email, and create a password.
5. Blockchain wallets now come equipped with integrated APIs. Thus, enabling users to make marketing decisions and pull data from other platforms to do crypto market analysis, watching pricing of cryptocurrencies, transaction tracking as well as social features like emailing, chatting, posting status.
How Does A Blockchain Wallet Work?
All Bitcoin transactions take place in Blockchain wallets which are secured by cryptography. Each transaction includes a user exchanging some value of Bitcoin for an asset or service with another Blockchain wallet user. When this happens, each wallet uses its discreet data to sign and validate transactions. Thus, offering proof that the users involved in the transaction are the owners of their wallet. The Blockchain wallet has no limit to the number of Bitcoin you would like to keep in it.
Whenever you want to do an exchange, you give your wallet address to them. They assign the crypto to your public address. This is not your wallet though, just a hashed format of your walled address. The hash function is to encrypt the input to give output unknown to the public but one that associates with your public address is your wallet address.
You have a private and public key that is associated with your wallet address. This is the only way a user can decrypt encrypted information by the sender and release the contents. Thus, giving you assess your cryptocurrencies.
A user will use his private key to send crypto by signing a transaction before sending it to the blockchain network. Once it is part of the public broadcast, the nodes use the public key which is associated with the private key to authenticate and validate the transaction. It will allow it through only after this step.
Also, each transaction that is created by a private key includes a unique digital signature. Thus, even when the same private key creates multiple signs it is still difficult to make a copy.
The recipient uses his private key which is related to his public address where the crypto was assigned to receive the amount in the wallet. If a user only sends a message using his wallet, he will sign the message with his private key.
Thus, we saw the basic idea behind Blockchain Wallets as well as learned about how the private and public keys are used to sign the transactions and unlock the data sent or received. We hope that this read gave you better clarity about Blockchain wallet and how they actually work. To gain a better understanding of Blockchain and how does it work, you can visit here:
__________________________________________________________________________________________
Fintelics is an AWS Advanced Tier Consulting Partner. The company has also been awarded ‘Best FinTech Consultancy – Ontario’ and ‘Leading Expert in Fullstack Omnichannel Software Development’ by Wealth & Finance Magazine.
You can learn more about Fintelics by:
– Visiting our website:
– Following us on LinkedIn:
– Liking our Facebook Page:
#blockchain #blockchainwallet #cryptowallet