What is Bitcoin Wallet and How it works? – Updated Guide
Hello guys, here we will discuss the Bitcoin wallet and it’s working. Bitcoin wallet is similar to your regular wallet in which you put money like Pay TM wallet. But only difference is that you can store only Bitcoins in a Bitcoin wallet. Bitcoin is a digital currency so it’s wallet is also digital. All transactions in Bitcoin is stored in a chain that we call a Blockchain.
Bitcoin Wallet Working
Private Key
Private Key is the main key that you can use for transactions, and recovery and everything in your Bitcoin wallet depend on private Key. When you do a transaction then you use your private key with the receiver’s public key for encryption. When a transaction is completed the receiver gets encrypted transaction data. The only receiver can decrypt this transaction data using his private key. The private key must be private and only owners must have this private key. If someone knows your private key then the person who knows your key can access your wallet also.
Public Key
Public Key basically visible to all. If you reveal it publicly then still it will be fine. Only you need to keep private is private key. If you want to send Bitcoin to another person then you must know the receiver’s wallet address. If you know receiver’s public key then you can send Bitcoin by encrypting using your private key.
In this way a wallet work, You can access your same wallet from any wallet provider using your private key. For secure Bitcoin, you can also use a Hard wallet also that is more secure than soft wallets online.
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