Bitcoin Wallets
BY DAVID BARNES | BITCOIN CO. LTD.
What is a Bitcoin wallet?
A broad definition:
A method of storing bitcoins
Without any form of wallet
your bitcoin will be lost forever
General Types of Bitcoin Wallet
 Desktop/Mobile application wallets
 Full client wallets
 ‘Lite’ client wallets
 Web-based wallets
 Hosted wallets
 Client-side wallets
 Offline wallets
 Brain wallets
 Paper wallets
 Hardware wallets
Desktop/Mobile Wallets
Full node wallet - “Bitcoin Core” (Satoshi Client)
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Original Bitcoin wallet
Download the entire blockchain
Share the blockchain with others
Other application: Armory
Pros
Cons
 Independent
 Assist in running the Bitcoin network
 Dependable API
 Slow initial load
 Disk/Bandwidth usage
Downloads:
 https://bitcoin.org/en/download
 https://bitcoinarmory.com/
Desktop/Mobile Wallets
Lite Clients
Only download a small amount of relevant data
2 Methods
1.
Download from a centralized server or group of servers
 Electrum (http://electrum.org)
 Mycelium Bitcoin Wallet (Google Play Store)
2.
Download directly from full client nodes (SPV)
 Multibit
 “Bitcoin Wallet” for android
Desktop/Mobile Wallets
Lite Clients
Pros
Cons
 Fast setup
 Low disk usage
 Low bandwidth usage
 Less reliable data
Dave Recommends
 Electrum for Desktop
 Mycelium for Android
Web-based Wallets
Hosted Wallets
 A provider holds your Bitcoins for you
 Allow you access to your Bitcoins upon request
Pros
Cons
 Generally easy to use
 No installation required
 May offer account limits & account
security settings
 May be more security aware than you
 Reliant completely on 3rd party
 High risk of hacking or dishonest
provider
 Possible to freeze your account
Examples:
 https://coinbase.com
 https://circle.com
Web-based Wallets
Client-side wallets
 Javascript based wallet
 All cryptographic functions occurs client-side in your browser
Pros
Cons
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 Partially reliant on 3rd party
 Risk of using a compromised wallet
webpage
 May be insecure if saved
history/bookmarks
Generally easy to use
No installation required
May offer account limits *
Allow you to backup/transfer your
keys
Examples:
 https://blockchain.info
 https://greenaddress.it
 https://rushwallet.com
Offline wallets / Cold Storage
Brain wallets
1.
2.
Remember your private key directly
5Kjvg8WD11vbwbpJectFGe3EjbNNRzRh4UXiK4oK42yc1pGFmY5
Difficult to remember
Use a random passphrase to generate a private key
“frequency woman poverty engine standard creature cruel safe”
Easy to remember
Pros
Cons
 Can never be stolen
 Can be transported where ever you go
 May forget it
 Must use with another wallet for sending
Reference:
 https://brainwallet.github.io/
 https://keybase.io/warp
Offline wallets / Cold Storage
Paper wallets
 Generate a key private and write in down
 Keep the paper in a safe place and never let others look at it
Pros
Cons
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 May be stolen/lost/destroyed
 Must use with another wallet for sending
As safe as the location you store the paper
Easy to store
No memory required
Can be given to other people
Can keep multiple copies
Examples:
 https:// brainwallet.github.io
 https:// bitaddress.org
Offline wallets / Cold Storage
Hardware Wallet
 Any computer or device running a wallet application
that is not connected to the internet
Pros
Cons
 As safe as the location your device
 Impossible to hack during the sending
process
 Safer and more convenient to send
transactions compared to other offline
wallets
 May be stolen/lost/destroyed
 Must use with another wallet for sending
 Cost money
Other Cool Stuff
Deterministic wallets
 Wallets that have the ability to generate an infinite number of addresses based on a single
“seed” phrase
 Can backup all your different addresses with a single sentence
 Wallets with deterministic ability include:
 Electrum
 Armory
 Greenaddress
Other Cool Stuff
Multisig addresses
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Transactions must be signed using multiple keys
Can use a combination of different wallet methods to sign a transaction
Can be signed in totally different location
Wallets with multisig ability include:
 Bitcoin Core
 Greenaddress
Questions or Other Wallets
Does anyone have any questions about wallet?
Or want to talk about any wallets that I didn’t mention