How Bitcoin Wallets Work (Public & Private Key Explained)

Wallets in cryptocurrency work in a weird way. They also have some weird properties like: they can be created offline and be used directly. Whut? Let's see how it all works, Simply Explained!

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[cbug]

Finally, this is the video that I am looking for, to get general understanding of bitcoin in overall. So many bitcoin videos and no one explain clearly like this. Thank you.

[FZMStudio]

So refreshing to hear a simple and clear explanation. You explained a lot of things in a very efficient way. Great vid

[pokerpawz]

Awesome explaination! Finally found someone to explain things more simplified so I can understand.

[freedomisdead]

Outstanding, you talked about private key during the whole video without showing any concrete examples on a wallet app!

[cwingate]

Wow! I’ve been drowning in the deep end that is cryptocurrency.... your video presentation is perfect! I can’t understand why you haven’t got millions of views! Thank you so much ☺️

[toostoned]

Wow, I understand crypto currency now, thanks! This is probably the simplest explanation of the concept I've ever seen.

[JohnyK]

2:50 this is really funny... so technically it means that when someone creates a new wallet, that person will always have and infinitesimally small chance of creating a wallet with the matching number to one of those that were used for coin burning, and so it can be filled with a huge amount of cryptocoins! xD
Of course, that probability is so small you'd probably have a higher chance of writing the exact number of particles in the universe on your first try with your eyes closed... but still, not completely 0%! xD

[joaoaportugal]

Over the last weeks i've been educating myself on blockchain and cryptocurrency concepts, trying to figure out how the whole puzzle fits together. This video actually felt like the last piece of the puzzle for my mental picture on how the whole thing works!
Your videos are amazing!
Also, i must say i have an MSc degree in Computer Engineering and never actually bothered to soak in these security-related concepts in my classes (e.g., cryptography concepts, symmetric/asymmetric encryption) because it all just seemed so boring. You present it in a simple and to-the-point way, which is just wonderful!

[Shemang]

How is all this information free? dude this channel has given me the easiest explanation of blockchain. thank you

[LHarris]

Since the wallet addresses are created without any input from the blockchain, how are they maintaining uniqueness across the blockchain?

[g.singh]

1st video.
subscribed!!
Very well explained

[proshantakumarroy]

This video says about cryptocurrency which explains about two keys one public another one private key.public key likes bank account and Private keys like ownership which very excellent teaching, for I like it.

[benny]

The best, most complete and simplest explanation. Good job👍

Best and clearest explanation ever. Thank you!

[ducnguyen]

So there are publicKey and privateKey, you can generate publicKey from privateKey, but you CAN NOT generate privateKey from publicKey.
1. BTCAddress = RIPEMD160(SHA-256(publicKey)), and you have to keep your privateKey secretly,
2. Someone sent you some coins to the address in #1
3. Now you want to send some coins to Alex, you have to provide your address, your privateKey and Alex's address
4. BTC Node will use your privateKey regenerate a new address, then compare the new address with the one you provided from #1. If it is valid, then check for the amount and submit a transaction at the end.

[nescolet]

Can you make a video explaining further how to make and use a paper wallet?

[bolopez]

Still have one question, I have a paper wallet how do I send coins from my paper wallet. I have my private.

Very cool, I didn’t know that was how it worked. Excellent explanation, as always. Thanks for sharing!

[johnhajdu]

What happens (theoretically), if someone creating offline a Public+Private key combo, and someone else also creating a wallet with the same public but different private key. And then a third person sends money to this public key. Can person 1 and person 2 spend out the same money? I mean not both of them only one of them.

[GeoffreyProfessional]

Thanks a lot for these explainer videos. Getting a lot out of them. Cheers!