Blockchain Network Communication Doubt In wallet application

1 answers
1 votes
Blockchain Network Communication Doubt In wallet application
I am trying to understand working of ethereum based wallet applications. Suppose I have to build a wallet application called MYWallet that supports sending and receiving BTC.

Users can send and receive BTC either from a wallet address created within the wallet(internal wallet) or from any external wallet.

If a user for the first time adds 5 BTC to his MYWallet BTC address. This transaction comes with the bitcoin network knowing about it and then reaches the MYWallet address from the external wallet address.

If he then sends 1 BTC to a different internal wallet of another user within MYWallet, does the transaction have to be transmitted to the Bitcoin network?

Within the MYWallet app, the 1BTC can be subtracted from one user's wallet and added to the target user's wallet easily.

But, how does the network know about? When is the best time to transmit this data to the bitcoin network?

Is it ok if the internal transactions between users in the wallet don't transmit to the network?


newest most voted

Transfer of ownership of a the crypto would be a part of the blockchain and it should and would be broadcast. internal transactions are those that call smart contracts and that a smart contract may trigger causing value changes, etc. But not quite crypto transfer.


Hi Saarah, thanks for replying.

So, To track ownership details while doing internal transactions, it is required to call smart contracts? How does this work for BTC actually? Since its not an ERC20 based token, will it support smart contracts?

Hungry for knowledge?
New guides and courses each week
Looking to invest?
Market data, analysis, and reports
Just curious?
A community of blockchain experts to help

Get started today and earn 4 bonus blocks

Already have an account? Sign In