Bitcoin wallet

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Bitcoin wallet

The electronic interface to a user's bitcoins. The Bitcoin wallet is software in the user's computer or mobile device or an account with an online service. It can also be a hardware device that interacts with software in the computer. Many wallets that support Bitcoin are also used for Ethereum, Litecoin and other digital currencies.

The wallet holds the user's bitcoin balance but does not actually contain the bitcoins. It stores the user's Bitcoin address and private key to access the Bitcoin blockchain. When people make payments, the wallets use the key to digitally sign the transactions proving ownership of their coins in the network, known as "unspent transaction outputs" (UXTOs). A wallet can also be part of a Bitcoin node (see Bitcoin mining and Bitcoin transaction).

HD (Hierarchical Deterministic) Wallet
The type of wallet in common use is an HD Wallet, which derives the private key from a randomly generated "seed" created at startup. Only the seed is required to restore the private keys if the wallet is destroyed. Rather than a complicated password, the seed is a series of from 12 to 24 alphabetic words that are easy to transcribe and copy. The HD Wallet (BIP-32 standard) generates all keys from the seed in a tree structure, and the different branches (keys) can be used to organize payments for different purposes such as departments in a company. In addition, a new public key can be created for each transaction that is safely published anywhere.

Nondeterministic Wallet
In contrast, a nondeterministic wallet generates a private key for each transaction using a random number. Known as "just a bunch of keys" (JBOK), this earlier wallet was cumbersome because multiple keys must be backed up in order to keep track of all the user's coins in the network. See Bitcoin and Bitcoin mining.

Ledger Nano S "Cold" Wallet
A hardware HD wallet stores the user's private key and works in conjunction with a compatible software wallet. As a device stored offline when not plugged into the computer, a hardware wallet is prevented from being hacked remotely. This HD Wallet supports Bitcoin, Ethereum and other virtual currencies. See cold wallet.

The HD Wallet Seed
At initial startup, the Nano S wallet generates 24 everyday words as the seed. These words must be recorded in a safe place if another wallet is used in the future to access coins.
References in periodicals archive ?
For more information on Bitcoin wallets, read out Guide to Finding the Best Bitcoin Wallet .
We held a meeting with our staff to explain the idea and hoped to receive some constructive criticism or at least some useful questions from them but it seems they were all way ahead of the game, most already had active Bitcoin wallets on there phones for online use and they have all really welcomed the idea.
With a Bitcoin wallet, a person can spend or receive the cryptocurrency with ease on a digital device.
An analysis of the bitcoin wallet of one such popular service noted that it received the equivalent of $326,000 from wanabee criminals in less than two months.
A Bitcoin wallet provides mathematical proof that transactions came from a wallet's owner.
The companies are Blockchain, a London-based Bitcoin wallet provider, and Bitstamp, a Bitcoin exchange based in Luxembourg.
In the case of NotPetya, victims are instructed to send $300 worth of Bitcoins to a blockchain address, then send their Bitcoin wallet ID and unique encryption code to an @posteo email (since disabled).
Blockchain startup Sphre, an identity management company focused on Blockchain projects, has entered a collaboration with Airbitz, a data security platform and mobile bitcoin wallet.
The bitcoin wallet industry is evolving at a frantic pace," says Sandeep Goenka, Co-founder and Chief Operating Officer of bitcoin company Zeb IT Service.
According to an affidavit unsealed Thursday, the Justice Department learned in April 2015 that Bridges might have kept a private cryptographic key giving him access to a Bitcoin wallet with the $700,000 in currency that the Silk Road task force had seized in 2014.
It is an ISO-certified bitcoin company that offers bitcoin wallet, exchange, trading and merchant services along with other blockchain-based services.
He gave as examples refrigerators fitted with a Bitcoin wallet that can order and pay for groceries; people in countries with collapsing currencies using a cryptocurrency to protect the value of their money, or as a hedge against corruption.