Bitcoin Universe

Model 06 · Bitcoin Fundamentals

Anatomy of a Wallet

A wallet holds secrets, not coins.

Intermediate≈ 12 min

Explanation level

How to use this model

How to use this modelWhat you see, what you can touch, what changes, what to take away

What am I looking at?

A precision device in exploded view with six transparent layers: key material, public-key derivation, spending conditions, address generation, UTXO tracking, signing.

What can I touch?

  • Explode and reassemble
  • Inspect each component
  • Generate safe demonstration keys
  • Explore public-key relationships

What happens when I change something?

Generate a different demonstration key and the public key, the script and the address all change with it, because each is derived from the one before.

What should I understand afterwards?

Explain that a wallet stores keys while coins live on the chain.

Understand what a wallet actually stores.

A keyring, not a purse.

After this you can

  • Explain that a wallet stores keys while coins live on the chain.

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Tutor Ask a question, or let the tutor show you around

The tutor answers by explaining and, within the permissions below, by operating this model. Every change it makes is shown and listed, and you can undo it. It cannot run code, read your browser data or see anything secret. The page works the same without it.

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    Common mix-ups

    Myth: Your bitcoin is stored in your wallet.
    In fact: Your wallet stores keys; the outputs are recorded on the blockchain.
    Myth: An address is a public key.
    In fact: An address encodes a script; the script may commit to a key hash, a script hash or a Taproot output key.

    Concepts in this model

    Helpful to know first

    Next recommended

    Model 19 · Bitcoin FundamentalsThe SHA-256 Hashing MachineA fingerprint for any data, computed step by step.

    Part of these learning paths