A core wallet is a type of cryptocurrency wallet that holds all the records of a ledger. Like other crypto and Bitcoin wallets, a core wallet allows users to receive, store, and send the ledger’s cryptocurrency, allowing users to interact freely with the network.
The primary difference between other wallet types is that the core wallet holds all the registries of the ledger. A blockchain ledger’s size keeps increasing as the number of transactions is added.
Let’s break it down further. Crypto holders have their own hot or cold wallets. These wallets store their private keys and provide some form of record of ownership of digital wallets. However, these wallets don’t contain a record of other cryptocurrency transactions in the history of that blockchain. It would be like the difference between your personal bank account and the bank’s records of all transactions in its history. One is more specific, while the other is the complete record of all transactions.
By running a full node, a core wallet holds this whole record.
A full node is a special computer that keeps a complete copy of the blockchain, keeping the ledger decentralized and secure. Depending on the size of the network, internet connection, and the full node’s capabilities, full synchronization can take hours, even extending to days. Full node operators operate a core wallet.
The full Bitcoin node keeps growing and is maintained by its army of computers. A core wallet reflects the entire record and offers high levels of security, transparency, and stability. Such wallets suit serious crypto enthusiasts keen on the technical aspects of the network. Because of the extensive data requirements, Bitcoin’s core wallet would take hours and possibly over a day to synchronize.
Is Bitcoin Core A Good Wallet?
The Bitcoin core wallet is contained in a Bitcoin full node allowing the operator to keep a complete copy of the Bitcoin ledger while safely interacting with the network. Since the user can connect and trace transactions, even sending, storing, and receiving transactions, the Bitcoin core wallet is considered the safest form of BTC storage.
The main advantage of a Bitcoin core wallet over other variants is that it offers a higher level of security and stability. However, the only disadvantage is that it takes a lot of space and computing resources to operate. Sophisticated Bitcoin miners would know the need for advanced hardware to operate mining. A core wallet is similarly burdensome on a home PC and is suitable for users who buy high-power hardware or use additional features like graphic cards to enhance their computing capabilities.
For users who only trade or store crypto for a while, there is no need to run a core wallet. The expertise and resources it takes to sustain the running of a core wallet make it counterproductive. However, those with a background in development and programming can enhance Bitcoin’s security by running a node themselves. Anyone can download and install the Bitcoin core wallet, with most that use this wallet enthusiast keen on contributing to the technical aspects of the network.