Manage multiple bitcoin wallets wikipedia


A bitcoin wallet is a software program, which allows the user to easily manage their bitcoin transactions. It does so, by checking for balances for the users addresses and securing the corresponding private keys. Usual functionality for a wallet include receiving and sending bitcoins from the device running the wallet, a view of the transaction history, an address book and the import of additional wallets or private keys.

The most important distinction can be made between thin and full wallets. A thin wallet fetches information about the users transactions either from a trusted server, or from the bitcoin network directly.

The device running the thin wallet doesn't have to keep a copy of the whole transaction history of the whole bitcoin network, which is called The Blockchain.

A full wallet looks up the users transaction history on a locally stored copy of the the blockchain and thus has to save it and synchronize it constantly. Because the blockchain is of significant size, tens of Gigabytes so far, this can be challenging for users. It is therefore for most users recommended to use thin wallets. There is also a third kind of wallet to be mentioned, which can be called a third-party wallet.

These wallets only connect the user to a third-party, usually a bitcoin company, which manages the addresses and keys of the user for him or her. The device of the user therefore doesn't actually run a wallet, but more of a connection program to the wallet which is actually running on the companies servers. For latest news and release please see btcarmory. This means users never have to trust the Armory team and can use it with the Glacier Protocol.

Satoshi would be proud! Armory pioneered cold storage and distributed multi-signature. Bitcoin cold storage is a system for securely storing Bitcoins on a completely air-gapped offline computer. The Armory team is highly experienced in cryptography and private key ceremonies. For example, they have collaborated with Verisign on developing an innovative Identity Verification Specification for establishing trust on the Internet. At Armory, we strive to constantly improve the best Bitcoin wallet with new security features.

Armory pioneered easily managing offline Bitcoin wallets using a computer that never touches the Internet. Everything needed to create transactions can be managed from an online computer with a watching only wallet. All secret private key data is available only on the offline computer. This greatly reduces the attack surface for an attacker attempting to steal bitcoins. By keeping all private-key data on the offline computer only someone with physical access to the offline computer can steal your Bitcoins.

The actual process of creating a transaction and signing it with the offline computer can take less than a minute and then you can broadcast it to the network so Bitcoin miners can include it in a block. Plus, Armory employs many security practices so that even if someone physically stole your offline system then it still may take centuries for them to get through the advanced wallet encryption!