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'Hi everyone!

Is web3's wallet definition and usage, the same as in Bitcoin's?

Appreciate any clarification, R.

  • Geth version: 1.10.12-stable
  • Geth's web3 api version: 0.20.1
  • OS: Windows
  • web3.py version: 5.25.0
  • python version: 3.10.1
  • I started my geth using the following command: geth console --goerli --syncmode "light" --http --http.port 20000 --http.api personal,eth,net,web3 --allow-insecure-unlock
  • Related questions: #1 and #3

1 Answer 1

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This is for those who might want to be clarified on the wallet/account concepts on Ethereum, thanks to @mikko-ohtamaa.

The answer is YES and NO.

Wallets have nothing to do with the structure being used in blockchains to track down the balances or handle transactions. It is just a file containing accounts' info(public/private keys) and web3.eth.accounts.wallet-based commands mentioned here are just to handle that. Thus, from this point of view, the wallet concept is equal in these two atmospheres.

Furthermore, Ethereum does not use the UTXO model, like the one in Bitcoin. This is a start point article about that. It uses an account-based model. Thus, from this point of view, the wallet concept is NOT equal in these two atmospheres.

So, having a Bitcoin-like structure to handle transaction flow for centralized exchange structures is impossible to me. Instead, some may use the smart contracts to manage that. You can explore this approach for a beginning step towards that. If you are going go further, see this and this.

I am looking forward any innovative ideas/comments on the subject.

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