What is a Bitcoin wallet?

Definition

The different kinds of wallets

  • Full nodes wallets : They store a full copy of every transaction in order to validate them.
  • SPV (simple payment verification) wallets / Lite wallets : They rely on full nodes to validate transactions. They have the advantage of taking less space than full nodes.
  • Hot wallets : They are connected in some way to the internet. They are both considered as the most popular and least secure, since they can be accessed through internet. There are different kinds of hot wallets:
  • Cold storage wallet : This refers to any kind of wallet that isn’t connected in any way to internet. They can take several forms:
    Paper wallet: the private key is here written on a paper. The risk with it is the ket being lost or destroyed. It is then very important to make copies.
    Hardware wallet: the private key is kept on devices, that will be needed in order to perform transactions. The limitation here is that you need to keep this wallet with you, otherwise no transaction will occur.
    Brain wallet: the private key isn’t, like in the other cases, a random set of numbers. Instead, it is a password that the wallet owner needs to remember. The downside of it is the high risk of being hacked. Indeed, many people are very predictable when it comes to choose a password.

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Ludovic Manga

Ludovic Manga

Passionné par les nouvelles technologies, et ce qui nous entoure.

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