What is Core Wallet?
A core wallet stores an entire blockchain and all of its data, rather than individual transaction data for one user. This serves two important purposes. First, it makes it possible for users to send digital money, as well as receive and store it. However, on a larger scale, the core wallet performs higher functions. The core wallet ensures that crypto remains decentralized by allowing its users to program on or with it. A core wallet can hold the entire blockchain rather than a piece of that block.
Let’s take a look at the Bitcoin Core wallet as an example. To use this wallet, users must download the entire Bitcoin blockchain including all previous transaction data for all users in history. When a user downloads Bitcoin Core, they are running a “node.” This means they are running one of the computers that stores and updates Bitcoin data, essentially helping to run the blockchain.
Users do this either to mine Bitcoin and receive rewards, or simply because they are a crypto enthusiast who ideologically supports the idea of running a Bitcoin node. Alternatively, people may do it to learn more about how Bitcoin and crypto works.