What is a digital wallet? [29,JL]

NFTs are stored in Digital Wallets.

A Digital Wallet is a unique identifier used on a blockchain to record ownership or issue control of NFTs and other digital assets (eg cryptocurrencies).

There are 2 important parts to a Digital Wallet:

  1. The Public Address
    As the name suggests, this is the public identifier of a digital wallet. It is a unique string that is visibly associated with transactions on the blockchain. The public address is typically used to receive payments and NFT transfers.
  2. The Private Key
    This is another unique string but is different from the public address as it should always be kept private. The private key grants its holder permission to transact using the associated wallet. Anyone who has access to your private key can take control of your wallet and its contents.

    How they work  

    When a person sends NFTs or other digital assets on a blockchain (eg cryptocurrencies), they are essentially signing off ownership of the tokens to someone else’s wallet address. To be able to use those tokens, a private key stored in the sender’s wallet must match the public address to which the token is assigned. If public and private keys match, the token is transferred successfully. The transaction is signified merely by a transaction record on the blockchain and a change of ownership.

     

    [29, JL]