Note
If you are new to the blockchain technology, taking our Introduction to Blockchain Technology self-paced course is highly recommended. Also, for a comprehensive coverage of blockchain development in Ethereum or mastering Solidity programming, taking our below self paced courses is highly recommended:
Recap
In our previous article (How Ethereum Virtual Machine works), we discussed how Ethereum Virtual Machine works.
In this article, we learn how Ethereum address and wallet work.
Address and wallet
Earlier, we introduced Ethereum accounts, transactions, and smart contracts. They are all linked to an address, which refers to the owners of both types of accounts or the senders of messages and transactions. Like Bitcoin, Ethereum has the concept of the Ethereum wallet too. It is a tool that allows you to easily share your public keys and securely keep private keys. In this article, we will discuss the details about the Ethereum address and wallet. We will also provide a brief introduction to different wallet tools.
Addresses in Ethereum
As we discussed earlier, an EOA has a pair of public and private keys. The private key is used to digitally sign any transactions. The public key is used to generate the account address, which is linked to account state in the world state.
To generate an Ethereum address, take the Keccak-256 hash of the public key. The rightmost 20 bytes of the hash, with a prefix of 0x as the hexadecimal identifier, is your Ethereum address.
The CA has an account address too. Traditionally, it is generated based on the sender’s public key and the transaction nonce. A newer address creation schema based on EIP 1014,
Skinny CREATE2, was implemented as part of the system-wide upgrade release of Constantinople. It allows the developer to create an address for future smart contract deployment. Interested readers can check out the EIP link at https://eips.ethereum.org/ EIPS/eip-1014. Once the transaction is processed, the CA will be linked to the account address in the world state.
Ethereum wallet
Before you can trade ether, you need a place to store it. Ether, just like every other cryptocurrency, doesn’t exist in any tangible shape or form. All that exists are records on the Ethereum blockchain. In the same way as Bitcoin, the Ethereum wallet allows you to interact with the blockchain to enable cryptocurrency transactions.
An Ethereum wallet stores the public and private keys, where the private key is used for paying or spending ethers and the public key for receiving ethers. A wallet can contain multiple public and private key pairs. An Ethereum address, derived from public keys, is used as the public address for you to receive the ethers. However, every piece of cryptocurrency has a private key. You will need the private keys from your wallet to unlock the funds to spend the coins.
Wallet tools
There are many wallet implementations to choose from. You may have to decide for yourself which wallet is best for you. You have options to choose between hot and cold wallets; in other words, online and offline wallets. Or you can choose between hardware, software, or even paper wallets. There are a lot of mobile wallets available too.
For Ethereum, you may want to choose an ERC-20 compatible wallet. ERC-20 is an Ethereum token standard that defines standards, smart contract interfaces, and rules for issuing crypto-tokens on the Ethereum network. The following are a few known to be compatible with ERC-20 token standards:
- MyEtherWallet (https://www.myetherwallet.com/)
- MetaMask (https://metamask.io/)
- Mist (https://github.com/ethereum/mist/releases)
- Parity (https://ethcore.io/parity.html)
Next Article
In our next article (How mining works in Ethereum), we discuss mining in Ethereum.
This article is written in collaboration with Brian Wu who is a leading author of “Learn Ethereum: Build your own decentralized applications with Ethereum and smart contracts” book. He has written 7 books on blockchain development.
Resources
Free Webinars on Blockchain
Here is the list of our free webinars that are highly recommended:
- Hyperledger Fabric for system admin versus developers
- How to harness blockchain for environmental and corporate sustainability
- Review of Initial Coin Offering, Security Token Offering and asset tokenization use cases and best practices
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- Hyperledger Fabric for entrepreneurship- 21 blockchain business use cases
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- Recorded Live Webinars and Classes
Self-Paced Blockchain Courses
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- Intro to Blockchain Technology
- Blockchain Management in Hyperledger for System Admins
- Hyperledger Fabric for Developers
- Intro to Blockchain Cybersecurity
- Learn Solidity Programming by Examples
- Introduction to Ethereum Blockchain Development
- Learn Blockchain Dev with Corda R3
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Live Blockchain Courses
If you want to master Hyperledger Fabric, Ethereum or Corda, taking the following live classes is highly recommended:
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Articles and Tutorials on Blockchain Technology
If you like to learn more about blockchain technology and how it works, reading the following articles is highly recommended:
- History and Evolution of Blockchain Technology from Bitcoin
- Overview of Blockchain evolution and phases from Ethereum to Hyperledger
- Comprehensive overview and analysis of blockchain use cases in many industries
- Blockchain Crowdfunding Security Token or Initial Coin Offerings
- A beginner Guide to Blockchain Technology
- How Decentralized Peer-To-Peer Network Works
- How blocks are added to the blockchain
- How Public and Private Keys of Cryptography Work
- What Is A Cryptographic Hash Function
- How Digital Signature Works In Blockchain
- The role and types of consensus mechanism in blockchain
- How Proof-of-Work Consensus Works in Blockchain
- How Proof of Stake Consensus works in Blockchain
Articles and Tutorials on Ethereum and Solidity
If you like to learn more about blockchain development in Ethereum with Solidity, reading the following articles and tutorials is highly recommended:
- Review of Architecture and Components of Ethereum
- Comprehensive Blockchain Ethereum Developer Guide from Beginner to Advance Level
- How to Write Ethereum Smart Contracts with Solidity in 1 hour
- Review of Architecture and Components of Ethereum
- How Ethereum Manages Accounts
- How Ethereum Manages Transactions
- How Smart Contracts Work in Ethereum
- How Ether and Gas Work in Ethereum
- How Ethereum Virtual Machine works
- How address and wallet work in Ethereum
- How mining works in Ethereum
- List of Tools and Technologies in Ethereum Ecosystem
- Review of challenges in distributed systems
- Review of Cap Theorem in Distributed Systems
- Horizontal Scaling versus Vertical Scaling in Distributed Systems
- How to Scale up Ethereum Blockchain Applications
- Review of scaling solutions for Ethereum
- How to Manage Ethereum State Channel with Raiden
- How Plasma Chains Work in Ethereum
- How Sharding and Gasper work in Ethereum
- How Proof-of-Stack Consensus Works in Ethereum
- A roadmap for Implementing Ethereum 2.0
- How to work with Decentralized Data and Content Storage in Ethereum
- How Decentralized Messaging with Whisper Works in Ethereum
- Review of Infura for Ethereum Development
- Review of Infura Ethereum API
- How to Use Remix with Infura for Ethereum Development
- How Ethereum Client API Works
- How Ethereum IPFS Storage Works
- How to Install and Start Ethereum IPFS Storage
- How to Run Ethereum IPFS Storage
- How to Work with Ethereum Swarm Storage
- How to Install Ethereum Swarm Storage
- How to Handle Ethereum Messages with Whisper
- Review of Popular Ethereum Smart Contract Libraries
- Review of Private and Permissioned blockchain
- How to Set up a Local Private Ethereum Blockchain
- How to Run Geth on a Local Private Ethereum Blockchain
- How to Build a Local Private Ethereum Blockchain with Mining
- How to Run Geth on a Local Private Ethereum Blockchain with Mining
- How to Create an Account on a Local Private Ethereum Blockchain
- How to Use Ethereum Optional Flags with New Chains
- Review of Ethereum Options for Development and Testing
- Review of Ethereum Developer Chain Options
- Review of Ethereum API and Console Options
- Review of Ethereum Networking Options
- Review of Ethereum Transaction Pool Options
Articles and Tutorials on Hyperledger Family
If you like to learn more about blockchain development with Hyperledger, reading the following articles and tutorials is highly recommended:
- Introduction to Hyperledger Architecture, Projects, Tools and Libraries
- Complete Review of Hyperledger Fabric Architecture and Components
- Hyperledger Fabric for System Administers versus Developers
- How to use Prometheus and Grafana to monitor Hyperledger Fabric
- Blockchain Developer Guide- How to Install Hyperledger Fabric on AWS
- Blockchain Developer Guide- How to Install and work with Hyperledger Sawtooth
- Blockchain Developer Guide- How to Install Hyperledger Burrow on AWS
- Blockchain Developer Guide- How to Install Hyperledger Iroha on AWS
- Blockchain Developer Guide- How to Install Hyperledger Indy and Indy CLI on AWS
- Blockchain Developer Guide- How to Install Hyperledger Seth and Docker on AWS
- Blockchain Developer Guide- How to Configure Hyperledger Sawtooth Validator and REST API on AWS
- Blockchain Developer Guide- How to Build Transaction Processor as a Service and Python Egg for Hyperledger Sawtooth
- Blockchain Developer Guide- How to Deploy Ethereum Smart Contracts with Hyperledger Burrow
- Blockchain Developer Guide- How to Create Cryptocurrency Using Hyperledger Iroha CLI
- Blockchain Developer Guide- How to Explore Hyperledger Indy Command Line Interface
- Blockchain Developer Guide- Comprehensive Blockchain Hyperledger Developer Guide from Beginner to Advance Level
- Introduction to Hyperledger Sawtooth Blockchain Development
Articles and Tutorials on R3 Corda
If you like to learn more about blockchain development on Corda , reading the following articles and tutorials is highly recommended:
Articles and Tutorials on Other Blockchain Platforms
If you like to learn more about blockchain development in other platforms, reading the following articles and tutorials is highly recommended: