What is a Blockchain Wallet and How Does It Work?
A Beginner’s Guide To Blockchain Wallet And How Does It Work
One cannot fold up a bitcoin and put it in the wallet. Yet it can be securely kept in the crypto wallet using a private key.
Private keys are passwords that allow users to access cryptocurrencies and are kept safe and secure in blockchain wallets, allowing users to send and receive cryptocurrency. Blockchain in healthcare can be used successfully to make the right choices in the health ecosystem.
What are Blockchain Wallets?
A Blockchain (or cryptocurrency) wallet is a piece of software that allows users to buy, sell, and track the balance of their digital currency (or assets). If you are trading Bitcoin, Ethereum, or other cryptocurrencies, you must use a cryptocurrency wallet.
How Do Blockchain Wallets Work?
Before we get into how cryptocurrency wallets work, it's important to understand the concept of public and private keys, which are stored on Blockchain for the purpose of a transaction. These keys are non-identical pairs of large numbers, one of which can be shared with anyone (public key) and the other kept private (private key). These keys function similarly to the lock-and-key system, with your lock (private key) and keys (public key). No matter how many people have the keys, they are only useful if they are used to open the correct lock, that is if the private key is correctly paired with the public key. You can see what's inside the locker once you unlock it. Similarly, users can see the value of their digital assets (Bitcoins, ICO tokens, etc.) in their wallets when the public and private keys used in a transaction match.
A Brief On PatientMD Blockchain Platform
PatientMD is a physician-led organization that offers an integrated blockchain, mobile, and web app platform for healthcare management solutions. We are a unique healthcare platform aiming to provide a secure, user-friendly platform for selectively and privately sharing personal & health care data. This platform delivers improved cybersecurity through the use of revolutionary blockchain technology.
Types of Blockchain Wallets
To store and reflect a transaction on Blockchain, three types of Blockchain wallets are available.
1. Software Wallets:
These are software programs that can be downloaded to a device (desktop or mobile) or accessed online. Software wallets are further classified based on the type of device they are intended for:
Desktop: Desktop wallets can be downloaded onto a PC or a laptop and are only accessible from the system on which they are installed.
Online: Because these wallets are hosted in the cloud, you can access them from any device (mobile, tablet, or desktop) using a web browser.
Mobile: Because these wallets are available as a mobile app, they can be accessed at any time and from any location.
2. Hardware Wallets:
Hardware wallets keep users' private keys on a hardware device (like USB). These wallets are compatible with a variety of web interfaces and support a variety of cryptocurrencies. To use these wallets, connect them to any internet-connected device, enter your pin, and confirm.
3. Paper Wallets:
In the case of paper wallets, a pair of keys (public and private) is generated using a software application and then printed to enable a transaction. Paper wallets are typically used in conjunction with software wallets for the purchase and sale of funds.
Single or Multi-Currency Wallet:
There is no need to have a separate wallet for each currency if you or your customers need to deal with multiple currencies for receiving or transferring funds. You can choose between a wallet that only supports one currency and one that supports multiple cryptocurrencies.
PatientMD Token Wallet
PatientMD Token Wallet is a place that stores digital tokens and validates transactions when Patient tokens are used. It also stores private key or seed information, which is used to validate transactions and "sign" them so that your token can be used to make purchases or exchanged for another asset. This prevents someone else from using your Token or the transaction being altered by a third party. While the concept of Blockchain in healthcare may still feel nebulous to some, its basic functionality is actually quite simple to understand.
The Financial Takeaway
The answer to the question, "What exactly is a blockchain wallet?” is something related to a cryptocurrency bank account that only you have access to. To begin, you should research which wallet types are best for you. For beginners, learning to use these may take a little longer, but it may be worth it for the added security.