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What is a Blockchain Wallet? Definition, Examples, and Use

By Michael Rasya

Blockchain _ The quick advancement of technology has made many things easier and more practical for us to accomplish. For instance, there are a number of free securities applications available in the investment industry. Examples of cryptocurrency investments are the current blockchain wallet programs.

What is a Blockchain Wallet? Definition, Examples, and Use


Blockchain wallet is another name for the digital wallet software that users can use to manage and store their bitcoin and cryptocurrency assets. Need more information? Take a look at the debate below!


A blockchain wallet is what?

Users of the blockchain wallet can store their cryptocurrency assets in this electronic wallet. In this scenario, individuals can also control their cryptocurrency holdings, which include bitcoin and ethereum. It is free and possible to create a blockchain wallet online.


Users will receive a blockchain wallet ID code after the wallet is created, which is similar to a bank account. Users can download the blockchain.com page or the Google Play or App Store to access their wallet.


This wallet's main screen displays the user's transaction history along with the current cryptocurrency balance. Additionally, users can click the cryptocurrency balance icon to view the balance value in fiat currency of the country.


Blockchain and cryptocurrency have different properties

What distinguishes blockchain from cryptocurrency then? Cryptography serves as the security system for cryptocurrency, making it impossible to counterfeit.


Blockchain is a technological system that is tied to cryptography and is utilized as a digital data storage container, in this case for crypto assets.


While the two terms—crypto as the currency and blockchain as the system—have different meanings, they are related.


Functions of a Blockchain Wallet

In essence, a block saves fresh data and then manages it, which is how the blockchain functions. Records, transactions, and blocks are the three different types of stages that make up a blockchain.


This blockchain system has also been decentralized, meaning that no one party has full control over this, but it is divided between each device that has special software installed.


To make OctoMate clearer, here are the steps for how the blockchain wallet system works.

  • The first stage, an online store called Toko X has a bitcoin wallet to accept payments from its customers.
  • Then, there are consumers who want to buy products on the X store website and pay using bitcoin.
  • Store X gives the customer its bitcoin wallet address so they can make payments.
  • The consumer makes a payment or bitcoin transfer to the X store blockchain wallet address along with the transaction key.
  • Next, the bitcoin miner will accept the request for the payment transaction earlier. For those of you who don't know, bitcoin miners are a group of people who set up a special device to mathematically calculate the opening of new block gaps in the blockchain system.
  • The bitcoin miner calculates a new hash value that has previously been combined by a cryptographic hash.
  • Then, a new block is formed and can be used as a bitcoin wallet in store X transactions with its consumers.
  • Lastly, the verified transactions marked with bitcoins in the X store wallet add up.



Blockchain Wallet Fee

Bank transfer activities will incur an administration fee of approximately 0.25% and it will take several days before Bitcoin can be received. Then, if you use a debit, the process will be shorter but the administration fee is higher, which is 3%. Please note that not all stores can accept payments via blockchain wallets.


Meanwhile, blockchain wallets offer priority fees, i.e. transactions are only processed within an hour. Blockchain fees can also be set by the consumer. However, if the consumer sets the fee too low, the transaction cannot be made or even rejected.


It is important to remember that blockchain wallets enforce a system known as dynamic fees. These fees are charged to various transactions and are influenced by several factors. For example, such as transaction value and network conditions when making transactions.


Blockchain Wallet Security

The security of a digital wallet is indeed one of the most important considerations for its users. This is so that their wallet accounts cannot be hacked by irresponsible people. Here are the security levels of blockchain wallets.


Level 1

Level 1 security is created to avoid losing access to user accounts. At this level, users are asked to verify their email andur password generation (blockchain system cannot store passwords).


Level 2

Level 2 security is created to prevent others from illegally logging into the user's wallet account. This is done by means of two-way authentication and a call to the user's phone number to receive a password.


Level 3

Level 3 security is created to allow users to block TOR requests that could be abused. TOR is a global network of servers that can route web traffic through multiple computers with the aim of preventing others from tracing the origins of users.


Blockchain Wallet Advantages and Disadvantages

According to a statement on Blockchain's official website, nearly 30 million wallets have been created to date. Here are some of the advantages of blockchain wallets:

  • The most famous and famous bitcoin wallet in the world.
  • Has a built-in trading feature.
  • Administration fees charged for relatively low transactions (buy, sell, and trade).
  • The safety is guaranteed.


In addition, there are several disadvantages of blockchain wallets, including:

  • Centralized.
  • Ownership or anonymity tends to be low.
  • Blockchain wallet servers store users' private keys.


How to Use Blockchain Wallet

Simply put, the way to use a blockchain wallet to receive bitcoins is that you simply tell the Bitcoin sender your blockchain wallet address. At this stage you can also scan the QR code listed.


Examples of Blockchain Wallet Applications in Indonesia

Furthermore, there are several examples of blockchain wallet applications in Indonesia that you can use to store and manage your crypto assets, such as Bitocto.


This is an explanation of the blockchain wallet from its understanding to examples of its application in Indonesia that OctoMate can find out. This application system can be one of the right choices for storing crypto assets such as bitcoin. So, let's start investing from now on!