For instance, Both Alice and Bob use a crypto wallet to make transactions. A wallet is specialized software that calculates the balance of the user by keeping track of all incoming and outgoing payments.
A wallet also calculates the transaction fee that a user needs to pay to the miners of the network to confirm a transaction. Once Bob clicks ‘send’ in his wallet, the transaction gets propagated across the network. Within seconds most of the network knows about this transaction and Alice sees a new pending transaction. Soon a miner adds the transaction to the blockchain by mining a new coin block which includes the transaction. Once enough new blocks are added to the ledger after Bob’s transaction has been confirmed in a block, Alice will see in her wallet that the transaction is confirmed. It means that by now it is recorded to the blockchain and it cannot be reversed.
- What is a cryptocurrency wallet?
A cryptocurrency wallet is a software that allows you to store your private and public keys. It interacts with the blockchain to enable you to send and receive cryptocurrencies. If you want to use Byteconnect (BYC coin) or any other cryptocurrencies, you will need to have a cryptocurrency wallet.