How Wallets Work

Wallets use Cryptography to Secure your Assets.

Keys & Cryptography

As mentioned earlier, Web3 wallets don't actually store your digital assets; they rather store keys which allow you to access and manage those assets which are stored on the blockchain itself. Every wallet has a unique public key/address and a private key. The public key acts like a bank account number, while the private key acts as the password or signature that allows you to access and manage your digital assets.

While it is okay to share your public key, you must ensure that your private key is kept safe.

Public & Private Keys. Source: crypto.com/university

When you want to send digital assets, you initiate a transaction from your wallet by signing it with your private key. The transaction is then broadcast to the network and validated by the consensus mechanism we discussed earlier. Once the transaction is confirmed, the digital assets are transferred to the recipient's wallet.