How is pockets steadiness from unspent transactions in cryptography phrases?


Is a bitcoin wallets steadiness calculated on the consumer pc app? eg. Leger Dwell


How is bitcoin pockets steadiness calculated cryptographically?

There is no cryptography concerned, actually no encryption.

You add the credit and subtract the debits.

Does Ledger Dwell app examine/examine every transaction+hash & transaction+signature hash like mempool nodes do?

All nodes confirm the information they obtain, as far as they can. This entails computing hashes and verifying digital signatures. see Wikipedia article and Mastering Bitcoin, Chapter 4

Or does it solely take a look at the unspent output addresses and examine if they’re kids of pockets public key?


If that’s the case how does it do that in cryptography phrases?

Since wallets derive these keys and addresses, they simply maintain an inventory of them.

The unique derivation entails hashes. The hashing algorithms come from the world of cryptography however will not be encryption.

The strategy for deriving many addresses from a single seed is described in BIP32

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