A digital wallet (or e-wallet) is a software-based system that securely stores users' payment information and passwords for numerous payment methods.
What is Blockchain
Wallet and How Does It Work?
A blockchain wallet is a cryptocurrency wallet that allows
users to manage different kinds of cryptocurrencies—for example, Bitcoin or
Ethereum. A blockchain wallet helps someone exchange funds easily.
A cryptocurrency wallet stores private and public keys for a
transaction. The wallet interacts with multiple Blockchains to validate a
transaction, enabling users to purchase or sell one or multiple
cryptocurrencies.
For example: Someone sends you a Bitcoin or any other digital
currency. When doing this, the sender is assigning you the ownership of that
currency to the address of your Blockchain wallet. Now, for you to be able to
spend those coins, the private key in your wallet must match the public key
that the currency is assigned to. When both the keys match, your wallet balance
will increase. In this process, there is no exchange of currency but a
transaction is committed, recorded on Blockchain, and the changes are then
reflected in the wallet.
Why Use a Blockchain Wallet?
Traditional banking systems pose several problems for doing
any transaction. For one thing, transactions are often slow. For another, any
transaction has to pass through an intermediary, like a bank, meaning there is
a central point of failure. And there are issues in keeping track of all
accounts and balances; data can get jeopardized, manipulated, or even corrupted
across multiple systems where the accounts and balances are maintained.
Blockchain wallets reduce or eliminate these problems.
Got a project on Blockchain? Then reach out to us for a consultation.
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