Book Image

Building Blockchain Projects

By : Narayan Prusty
Book Image

Building Blockchain Projects

By: Narayan Prusty

Overview of this book

Blockchain is a decentralized ledger that maintains a continuously growing list of data records that are secured from tampering and revision. Every user is allowed to connect to the network, send new transactions to it, verify transactions, and create new blocks, making it permission-less. This book will teach you what blockchain is, how it maintains data integrity, and how to create real-world blockchain projects using Ethereum. With interesting real-world projects, you will learn how to write smart contracts which run exactly as programmed without any chance of fraud, censorship, or third-party interference, and build end-to-e applications for blockchain. You will learn about concepts such as cryptography in cryptocurrencies, ether security, mining, smart contracts, solidity, and more. You will also learn about web sockets, various API services for Ethereum, and much more. The blockchain is the main technical innovation of bitcoin, where it serves as the public ledger for bitcoin transactions.
Table of Contents (16 chapters)
Title Page
Credits
About the Author
About the Reviewers
www.PacktPub.com
Customer Feedback
Preface

Difference between online and offline wallets


A wallet is a collection of accounts, and an account is a combination of an address and its associated private key.

A wallet is said to be an online wallet when it is connected to the Internet. For example, wallets stored in geth, any website/database, and so on are called online wallets. Online wallets are also called hot wallets, web wallets, hosted wallets, and so on. Online wallets are not recommended at least when storing large amounts of ether or storing ether for a long time because they are risky. Also, depending on where the wallet is stored, it may require trusting a third party.

For example, most of the popular wallet services store the private keys of the wallets with themselves and allow you to access the wallet via an e-mail and password, so basically, you don't have actual access to the wallet, and if they want, they can steal the funds in the wallets.

A wallet is said to be an offline wallet when it is not connected to the Internet...