Burstcoin Wallets

If you familiar with the concept of a cryptocurrency wallet, and are just looking for the Burstcoin wallets, they are located in the Burstcoin software library.  However, if you are new to cryptocurrency, it is recommended that you continue reading to gain a bit of understanding first.

Burstcoin wallets do not contain Burstcoin.  Burstcoin exists only on the Burstcoin blockchain, a shared public ledger.  A wallet is a software program that interacts with the blockchain.  It reads blockchain data and displays information that is relevant to account holders such as balance, transaction history, messages, products listed for sale on the asset exchange, etc.  It allows you to make transactions which move Burstcoin from one account on the blockchain to another.

A Burstcoin wallet may be thought of as the user interface for the Burstcoin blockchain.

Burstcoin wallets use an account’s public address ( publickey ) to determine what information from the ledger and mempool to display in the wallet.  There are no records that relate a public address to a particular account holder in a personally identifiable way.  Personally identifiable information can be disclosed in the normal course of business however, such as when ordering a product and providing a shipping address.  Unless an account holder initiates such a disclosure, there are no other ways to identify the account holder for a particular public address.  For this reason, many choose to maintain several accounts, each for a particular purpose.

Each Burstcoin account has a passphrase that is known only to the account holder as long as it is not disclosed.  There is no record of this passphrase in the wallet.  The passphrase is entered into the wallet each time a transaction is authorized, but it is not retained by the wallet.  Transactions which are broadcast to the network also do not contain the passphrase.  Transaction contain only single-use digital signatures.  It can be derived from the signature, using cryptology, that the transaction was created by the owner of the passphrase for the account which created the transaction.  The actual passphrase cannot be derived from the single use signature.

If a wallet (software program) is installed on a computer that is lost or destroyed, the associated accounts on the blockchain will not be affected.  As long as the passphrase is still in the account holder’s possession, it can be entered into a new wallet at any time.  Passphrases work in any wallet, new or old, local or online.  Online wallets however, should only be used for accounts with small balances.  There is no absolute way to determine if a wallet provided online is legitimate.

Wallets are continually upgraded to incorporate useful new features and to make the underlying features of the Burstcoin blockchain more fully accessible.

There are several types of Burstcoin wallets.

• Local: These wallets should only be used on computers that are secure from intrusion.  For accounts accounts with large balances, transactions can signed on a disconnected device so that the passphrase is never exposed to the internet.  ( Offline Transaction Signing )
• Online: Cryptocurrency is intended to be trustless.  Using online wallets (which are centralized by nature) requires entering a passphrase into a website.  There is no way to be certain that the online wallet is not recording the passphrase.  Online wallets can be useful in some situations, but should never be used with high value accounts.  Do not accessing a local wallet through an online wallet.  This reduces the security of the local wallet to that of an online wallet.  Online wallets are useful to maintain small balances for daily purchases, or to collect mining proceeds where are then transferred to a more secure software wallet.

Editors note:  There is an additional risk associated with using an online wallets that does not employ SSL technology.  There is a chance that your account’s passphrase could be intercepted by a third party.  When using an online for an appropriate purpose, only use wallets provided by reputable community members or organizations.