Wallet Software

Wallet Software :

A cryptocurrency wallet is a software program that stores your private and public keys using which it interacts with various blockchain to enable users to send and receive their cryptocurrency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.

When a person sends you any digital currency, they are essentially transferring ownership of the coins to your wallet’s address. In order to transfer those coins, the private key stored in your wallet must match the public address the currency is assigned to. If public and private keys match, the balance in your digital wallet will increase, and the senders wallet will decrease accordingly. There is no actual exchange of real coins. The transaction is signified merely by a transaction record on the blockchain and a change in balance in your cryptocurrency wallet.

Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded.

Online: wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.

Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores.

Examples : Apple pay, Google wallet and Samsung pay.

Here is how a bitcoin transaction is processed:

1) Payers initiate a bitcoin payment using “wallet” software.

2) This and other pending transactions are broadcast on the global bitcoin network.

3) Once every ten minutes or so, “miners”, specialised computers (or groups of computers) on this network, collect a few hundred transactions and combine them in a “block”.

4) In order to mine a block and validate the transaction, miners compete to solve a difficult mathematical equation (a “hash function”). The miner that solves the equation first further processes the block and broadcasts this “proof-of-work” to the bitcoin network.

5) The other miners check the proof-of-work and the validity of the transactions. If they approve, the winning miner gets a reward of 25 newly minted bitcoin (about $6,900 at current prices), which is the incentive for miners to provide computing power. Adjusting the difficulty of the puzzle ensures that the supply of new bitcoins remains steady.

6) The mined block is added to the “blockchain”, a big, unbreakable ledger that lives on the bitcoin network and serves as a record of all transactions.

7) The payee can use his wallet software to see whether the bitcoin have arrived.

External links
Walletgenerator.net – Offers various methods to create private key to store and do transaction for the Ethereum wallet.

https://www.myetherwallet.com/ – GUI based system to manage Cryptocurrency like Bitcoin, Ether – Able to transfer/receive funds and much more.