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Bitcoin ownership is established through the use of keys, addresses, and digital signatures. Anyone who wants to send, receive or simply store BTC will need a cryptocurrency wallet that generates the above parameters. Having an investor’s own cryptocurrency wallet means that their assets are protected from possible hacks and from situations where centralized services freeze a client’s funds or account. The user can always verify a bitcoin wallet by number and see what transactions are being made and who is managing them.
What is the purpose of a wallet audit
Transaction auditing is a good practice to make sure that transactions are correctly displayed in the vault. It also provides assurance that the amounts in the account are accurate and up to date. However, an online Bitcoin wallet address balance check can cause an inexperienced investor to feel insecure. This often happens when, while inserting the account number into the blockchain browser, the user discovers that the amount in the account does not match the asset balances displayed in the vault. Therefore, it is important to understand the differences between a cryptocurrency wallet and a BTC address. These differences are related to how the Bitcoin blockchain system is organized.
What is a bitcoin address
When Bitcoin first appeared, people could send assets directly to an IP. However, the insecurity of the method later became apparent. Therefore, sending BTC over IP was discontinued and a more secure method was developed.
The Bitcoin blockchain is based on asymmetric cryptography built on public and private keys. The standard Bitcoin account format is P2PKH, or pay to public key hash. Digital wallets generate account numbers for BTC using cryptographic operations. The software creates a private key through an asymmetric signature algorithm and then extracts the public key from it. The user signs the transaction with a private code. This signature is verified using public encryption algorithms.
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The bitcoin account number consists of 26-35 alphanumeric characters.
The BTC account number is not important, nor is its format. What matters is that it provides the ability for transactions to take place. A Bitcoin address is nothing but a trusted identifier. It serves as a virtual destination when sending cryptocurrencies. This identifier is not intended for permanent use and is most often created to transmit a single transaction on the Bitcoin network.
Differences between a BTC wallet address and number
After Bitcoin abandoned the Pay to IP system, the new bitcoin account format standard was P2PKH. Now the transaction destination in the blockchain consists of about 34 characters, starts with the number 1 and looks like this:
1K31KZZXjcochXpRhjH9g5MxFFTHPPi2zEXb
Each cryptocurrency wallet software can easily create an infinite number of P2PKH format BTC addresses.
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First, the software collects entropy (a random selection of characters) and uses it to generate a private key Elliptic Curve Digital Signature Algorithm.
ECDSA is an asymmetric signature cryptographic algorithm underlying the creation of BTC addresses. The user validates messages with a private key and verifies with a public key.
Once the private code is created, the digital vault extracts the public key from it by selecting random coordinates on a certain elliptic curve and performing some calculations. Then, using a number of cryptographic algorithms, the familiar BTC account number is generated from the public code.
A Bitcoin account is a public key in a digestible form, to which a checksum is added to prevent the user from becoming a victim of a typo. When sending assets, the cryptocurrency wallet checks the prefix and calculates the checksum. If the latter does not match the calculations in the BTC address, the software rejects the account number. This makes it impossible to send funds.
If a user has a private key for a BTC account, only he or she can sign a cryptocurrency transaction. Someone who knows the public code has the right to verify the validity of this signature.
How to quickly check the bitcoin wallet balance
Investors often encounter the fact that the balance of their BTC wallet in the blockchain browser does not match the displayed value. The reason is that the cryptocurrency store controls several bitcoin addresses at once. Different addresses are used for each transaction.
Therefore, the real balance of the wallet is the sum of all the addresses associated with it. To quickly find it out, you can use a convenient service to check the account status from MATBEA.
It is even easier to check the BTC wallet address for balance through MATBEA’s innovative SWAP service. It implements an instant check of the total account for all addresses in the vault before the exchange.
This allows the client to be sure of the accuracy of the displayed amount before launching a cryptocurrency exchange via SWAP. If the user has any questions, they can watch a detailed video tutorial prepared by the team.
View the balance of a Bitcoin wallet on an exchange
Cryptocurrency wallets are a tool for storing digital acts. By sending funds to a cryptocurrency exchange account, an investor does not get full access to his coins. Theoretically, the company can use the private keys entrusted to them to steal investors’ funds. There have also been cases where users were unable to withdraw assets from their cryptocurrency wallets, and the providers subsequently shut down.
You can check balance information on an exchange through a blockchain browser search.
Usually, trading platforms will assign 1 Bitcoin address for the user to which they receive funds. The site will show all transactions that involved this address, as well as its balance.
Security measures
All bitcoin transactions are public, traceable, and online at all times. Addresses are the only source of data about where BTC is stored and where it was sent. It is important to have strong private key protection for all your accounts to keep your assets safe.
| Measure | Actions |
|---|---|
| Store private keys offline | It’s best to keep funds in wallets that operate without an internet connection. Cybercriminals will have a harder time accessing the private code from a user’s address. |
| Create new addresses to accept payments | You should generate a new Bitcoin address every time you plan to receive funds. This will help ensure privacy and isolate all transactions from each other so that they cannot be linked together. |
| Always connect to a secure internet connection | Most public networks are vulnerable. If the cryptocurrency wallet is used on a digital device, you should avoid connecting to public networks. |
| Use anti-virus software | Cyberattacks are carried out through malware. Avoid being hacked by properly scanning your computer or smartphone before installing the wallet. |
| Verify the bitcoin address before sending | When making a transaction, the user should pay attention to the recipient’s account number. There are malicious programs that change the address when copying and pasting. The risk of sending coins to attackers. |
How to find out your own or someone else’s address
This can be done through a cryptocurrency wallet by examining the details of the transaction. If the user needs to know the address in order to receive BTC, the program will generate a special number to receive coins after activating the “Deposit or Receive” function in the wallet. There are cases when you may need a complete list of all bitcoin addresses created in the storage. Such a list can be easily obtained by exporting it through a special function of the cryptocurrency storage software.
Summary
Standard blockchain observers are not always suitable for effectively tracking transactions in the Bitcoin network, as the balances of cryptocurrency wallets and addresses may not match. In order to audit and count your money, you first need to update your software and get up-to-date data. To do this, you need to:
- Export all transactions or bitcoin addresses to make sure all transactions have been accounted for.
- Double-check each hash using the block browser.
- Reconcile the transaction amounts with the account balance.
Frequently Asked Questions
🔍 Can I find out who owns a bitcoin address?
No. Owners are not identified.
❓ How do I track a bitcoin wallet?
This is difficult to do, as many different addresses are used for BTC transactions within the software.
💻 Is it possible to check balances on several bitcoin addresses at the same time?
Yes. Separate applications have been developed for mass verification.
⁉ How can I restore my wallet balance?
If the account was not attacked by attackers, the user will be able to recover his assets using a secret phrase (seed-phrase).
💡 Can I see the name of my bitcoin wallet if I have the address?
This information is only available when the account number belongs to a cryptocurrency exchange. In other cases, it is impossible to get the name of the wallet.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
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