What is block chain wallet?
Block chain wallet is a program that allows monitoring and conducting crypto currency between two wallet addresses which can be accessed using private and public key. Both key will be in Hash format. A hash is a string of numbers and letters, produced by hash functions.
Transactions are being recorded on the block chain in crypto wallets. If someone wants to send you crypto currency, it means they are assigning blocks to your block chain wallet.
How blockchain wallets work?
Blockchain is an digital database which keeps an unchangeable record of data operations. Group of these operations called “blocks”. Here is general flow of how it works:
- If someone want to send money using crypto wallet. Transaction is represented as block.
- The Blocks which is broadcast to every party in network.
- Those in the network approves the transaction is valid or not.
- If block is valid, it will be assigned to receiving crypto wallet
- Received block is permanent and unalterable.
- Commit the transaction
Type of Wallet
Here is overview of different type of crypto currency wallets:
- Mobile wallet – A wallet which run from the smartphone application.
- Web based wallet – A Web based wallet is hosted on any VPS or real device. Sometime it is called as hot wallet or web wallet.
- Desktop wallet – A wallet which run from the desktop devices. Safer compared to mobile and web wallet.
- Hardware wallet – Required dedicated hardware to hold crypto currency. USD sticks can be used for this wallet. This kind of wallet require internet to perform transaction and it will be offline after transaction commit successful.
- Coin wallet – Wallet which only work for specific coin.
Top 10 Crypto Currency
- BitCoin Cash
- Ripple XRP
- Steller (XLM)
- Cardano (ADN)
Top 5 Crypto wallet name
- Uphold – Mobile & Web based wallet
- Atomic Wallet – Desktop Client wallet
- Ledger Nano S Wallet – Hardware based wallet
- Ledger Nano X Wallet – Hardware based wallet
- Trezor One Wallet – Hardware based wallet