How can I tell if my Bitcoin-Qt wallet is protected with encryption?

Question

I am a new adopter of Bitcoins, forgive the ignorance. (note these are test transactions)

I am using the Bitcoin qt client and I am very confused and think I have done something wrong.

1. I have two computers A and B both with Bitcoin qt client on. I have made wallets on both computers.

2. After launching Bitcoin qt client for the first time on computer A I created two addresses using the 'new address' button. I then clicked 'Encrypt Wallet' and entered a passcode. Note I only did this process once, even though I created two addresses.

3. I then transfered two test transactions to the wallet on computer A from Bitstamp. These came through as:

   http://i.stack.imgur.com/2ziI6.jpg

(don't know if anything looks wrong in that picture?)

1. I then tried my first ever test transaction and sent it to the address I created on computer B (I have never encrypted this wallet).

2. To my surprise this sent, even though I didn't have to enter any kind of passcode on computer A? Plus my address on computer B isn't even encrypted?

3. Does that mean anyone can use the funds I have in my wallet on computer A, without my passcode?

4. The status of the transaction on computer B is also, 8 confirmations? Is this a sign of a mistake. Also the 'from' is marked as unknown - is this important?

5. There is also no lock icon on my QT client, which I have been told there should be if the wallet has been encrypted?

I'm confused, please advise. Sorry for my ignorance, I am not a technically minded person but trying to adopt bit coins.

Answer 1

1. You only need to encrypt each wallet once, no matter how many new addresses you make.

2. It sounds like the wallet encryption didn't happen. Did you maybe not type the same passphrase twice or something?

3. People can only spend your funds if they have a copy of your wallet. So even if you didn't manage to encrypt the wallet on computer A successfully yet, your funds are still safe as long as nobody gains access to your files.

4. The "8 confirmations" simply means that the transaction is buried 8 blocks deep in the blockchain, and so is very unlikely to ever be reversed. The number of confirmations will go up by 1 every time a new block is added to the blockchain by a miner.

5. The 'from' field is always 'unknown' in my experience. I don't even know what it's for.

6. My lock icon is in the bottom right corner of the client. There are 3 icons, and the lock is the leftmost of them. Try encrypting your wallet again and pay attention to what it says. I suspect you didn't type the passphrase the same twice when you tried to encrypt your wallet, so it didn't do it.

Answer 2

If you encrypt your wallet, it will also be encrypted for all addresses your ever create. Bitcoin qt will ask you for every transaction you made for the password.

Does that mean anyone can use the funds I have in my wallet on computer A, without my passcode?

At this moment yes, try to encrypt it again, maybe you made a misstake?

The status of the transaction on computer B is also, 8 confirmations? Is this a sign of a mistake. Also the 'from' is marked as unknown - is this important?

A confirmation means, that you transaction was successful added to a block and is processed. Some markets or platforms need a certain number of confirmations. Your payment is normal confirmed after 1 confirmation.

There is also no lock icon on my QT client, which I have been told there should be if the wallet has been encrypted?

Yes, there should be a "lock" icon on the right bottom. Try to encrypt your wallet again is it possible.