Contrary to the common expectations, cryptocurrency wallets don’t store cryptocurrency. Instead, these digital wallets store only the owner’s secret codes (private and public keys) which are used to unlock their currency so that it can be spent. All cryptocurrency is “stored” (recorded) in the globally distributed blockchain ledger, not in the wallet. The wallet is a combination of software, memory, and, in some cases, dedicated hardware. The wallet creates a message which defines the owners desire to spend money. Then the wallet encrypts that message using the owners private key(s) and sends it to miners who will validate it and make it a permanent part of the blockchain. Once that is done then the transaction is complete and the money is spent. The wallet is not used for the receive side of a transaction, only to send.
1
0
Leave a Reply
You must be logged in to post a comment.