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Friday, October 6, 2017

Complete Explanation of Bitcoin Wallet

What is a Bitcoin Wallet?

Wallet Bitcoin, is the place (purse) of Bitcoin storage. Somebody, will not be able to have Bitcoin without Bitcoin storage (Bitcoin Wallet / Wallet Bitcoin). Bitcoin wallet function is to store some cryptographic keypair, or more commonly known as "Bitcoin Address" (Bitcoin address).

The nature of the Bitcoin Wallet is different from the conventional wallets we used to know, whose function is to save some money. Meanwhile, Wallet Bitcoin has a different function, because Bitcoin wallet will organize a number of Bitcoin address (Bitcoin address) owned by the user.

Meanwhile, the amount of funds owned by the user can be accessed by requesting data amount of funds contained in Bitcoin addresses owned and add them.

Inside Bitcoin, a Bitcoin user, can have many bitcoin addresses. With this bitcoin address (Bitcoin Address), Bitcoin users can transact, either send or receive Bitcoin from other users.

To be able to spend Bitcoin, the owner needs a special line of code called "private key". This line of code is stored in a "wallet" or a digital wallet. When it will be used, then the owner accesses the code and uses it for the transaction. There are two things to know, namely about Private Key, and Public Key in Bitcoin wallet.
Private Keys

Private Key (secret key), known only to the owner of the Bitcoin address. By its very nature, private key functions as a PIN number in a Bank account. Broadly speaking, Private Key is as a key security of bitcoin users. Private key can be stored on computer or printed with printer. If the Private Key is known to others, then most likely will be stolen by others

Private Key Example:


Public Keys

Public Key, more reflected on bitcoin address (Bitcoin Address). Public Key in Bitcoin, has a function to identify the address of the sender and receiver of Bitcoin. So bitcoin will be distributed to others.

Sample Address Bitcoin:


Kinds and Bitcoin Wallets

Creating a Bitcoin Wallet, is the first step to be able to directly interact with Bitcoin. As in the previous discussion on the notion of the Bitcoin Wallet, that Bitcoin wallet serves as a storage place for Bitcoin, and then with the Bitcoin address, users can trade using Bitcoin.

Type of Bitcoin Wallet there are 5 kinds:

Desktop Wallet,
Mobile Wallet,
Online Wallet,
Hardware Wallet, and
Paper Wallet.

Below is the definition of each wallet.

Desktop Wallets

This Bitcoin wallet, using the software (software) wallet that must be installed on your own computer. With this software, users hold full control over their own Bitcoin purses. Bitcoin wallet software is already available in various platforms, such as Windows, Linux, and mac.

Here are all kinds of software that can be used on your computer.
  1. Bitcoin-QT: Bitcoin-QT is the original Bitcoin software
  2. Multibit
  3. Armory
  4. Electrum

Mobile Wallets

This Mobile Wallet, is a downloadable app on the phone, so it can be used anywhere on the phone or smartphone.
  • Bitcoin Wallet (Android)
  • Bitcoin Wallet (Blackberry)
  • Blockchain for the iPhone (hybrid mobile + web wallet)
  • Paytune (IOS) (hybrid mobile + web wallet)
  • Coinbase iPhone & Android (hybrid mobile + web wallet)

Online Wallets

wallet stored on a third-party server, a company that provides bitcoin storage services. Using web wallet means entrusting bitcoin to other parties.

Web wallet provider site:
  1. Coinbase
  2. Circle
  3. Strongcoin
  4. Blockchain
  5. Xapo
  6. BIPS
Hardware Wallets

This Bitcoin wallet, is a Bitcoin wallet with a hardware form that works just like a typical Bitcoin wallet. This hardware, made by a particular company, and until now there are many kinds of devices that are already available in the market.

Here are some kinds of Bitcoin wallet hardware:
  1. Trezor hardware wallet
  2. Ledger USB wallet
  3. KeepKey

Trezor Hardware Wallet

Paper Wallets

Bitcoin wallet in this form, is a Bitcoin wallet printed on paper or other physical media, including in the form of cards. Paper wallets are safer against digital theft like hacking, however, because of their physical form, making paper wallets more vulnerable to physical breakdowns.

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