What is Blockchain Wallet and How Does It Work?

A blockchain wallet is a piece of digital software that keeps track of and records all transactions using private and public keys on the blockchain. In principle, a blockchain wallet does not store bitcoin; instead, the blockchain on which the wallet is housed stores all data associated with these keys.
Public and private keys exist in blockchain wallets. In blockchain wallets, a public key and a private key are used in a similar fashion. In the same way that an email address may be shared, a public key can. When you create your wallet, you’ll also get a public key, which you may share with others to get money. The secret of the private key is tightly guarded. It’s comparable to a password in that it shouldn’t be shared and shouldn’t be compromised.

There are a few things that you need to know about a blockchain wallet, the place where you store your crypto funds. There are several types of wallets, but they can broadly be classified as hot and cold. Hot wallets are relatively unsafe wallets that are connected to the internet, while cold wallets, like hardware wallets, are not.

Each blockchain wallet has a public address and a private address. A public address is what you would send someone so that they could send you funds. Think of it as a bank account number. A private address is what you would use to access your funds. Think of it as a PIN number or password. When you want to send funds to someone, you access your wallet with your private key and enter the recipient’s public address, and then you send it.