14
votes
Accepted
Why do bitcoin exchanges use "central" wallets?
Note: This answer applies to Bitcoin, not "crypto" generically.
On terminology
I think you may be conflating "wallets" and "addresses". Addresses are used to communicate ...
- 63.4k
3
votes
Where is the private key stored. Also, how is a seed-phrase one's private key?
Note that the questions should be about bitcoin, and therefore, so are the answers. Any other cryptocurrency MetaMask supports might not have the same procedure for generating private keys.
Also, this ...
- 96
2
votes
How does the bitcoin network use public and private keys when one wants to transfer funds?
what is the process that is actually happening under the hood when I click the 'transfer Bitcoin' button of my wallet in terms of the keys?
Your wallet selects from available coins (UTXOs for which ...
- 18.2k
2
votes
How does ECDSA work when generating the public key?
What is secp256k1, is it the curve that is always used
Indeed the elliptic curve used in Bitcoin is secp256k1 which is the curve defined using a=0 and b=7 in your equation mod p. But other curves are ...
- 9,783
2
votes
Why do bitcoin exchanges use "central" wallets?
The Omniwallets mentioned in the previous answer can be thought of as a form of limited-scope L2 (second-layer) payment network, albeit one with much more required trust than a decentralized global L2 ...
- 51
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