Hi it’s Keir Finlow-Bates here, and today
a very brief post on the difference between a wallet and an address when it
comes to cryptocurrency systems and blockchain such as a Bitcoin.
So a Bitcoin address is like a pay-as-you-go debit card, so one of those
cards you load up with cash, it has a number associated with it, and you can go to
the store and pay for things with it. And a Bitcoin wallet is like a real wallet
full of these kind of pay-as-you-go cards. So you might have five or ten or
even 50 of them in your wallet. And then when you go to the store and you want to
pay for your goods, you fish out one of these cards. However, one of these
cards may not have enough balance on it so then you may take out a second or
even a third one in order to make your purchase, and hopefully there’ll be
enough on a number of these cards for you to actually go ahead and pay for the
goods that you’re buying. So that’s really it in a nutshell.
An address is one single entity that has a certain amount of credit to it – a
certain amount of bitcoins on it – and your wallet is a piece of software that
holds a number of these different addresses, which may all have different
amounts of balance on them, and the wallet software is what handles the
payment for you, decides which of these credited
Bitcoin addresses are gonna be used in order to pay for your purchase, and
ensures that you get the change back, usually to a new Bitcoin address. I
hope that made sense and I’ll see you in the next video soon. Bye for now!