Hybrid e-wallets

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I am quite confused regarding working of hybrid e-wallets..If private keys are stored on user's browser, then what is the purpose of involving a hosted web service... Can someone please answer my query ?

Sadia Khalil

Posted 2015-04-01T06:05:18.130

Reputation: 61

What site are you referring to? – Drazisil – 2015-08-30T07:06:17.737

Answers

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Generally web wallets have you store the keys on your computer, because otherwise they would have control of your Bitcoins and could run off with them.

The reason you need a site is because you can't broadcast transactions to the network without a full node, something that is running on the site's servers.

Web wallets of this type allow you the best of both worlds, you do not need to run software on your computer, and you retain control of your coins as the server never knows your private key.

Drazisil

Posted 2015-04-01T06:05:18.130

Reputation: 348

2Web wallets can generally still steal your coins, even if the keys are stored on your system. They can serve you different javascript that sends the keys back to them once you unlock them to sign a transaction. In fact, this has actually happened in the past. A web wallet trades security for convenience. – Pieter Wuille – 2015-11-28T11:06:00.500

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The hosted web service provides a means of accounting over your transactions or can even provide one or more private keys in an m-of-n multisig schema (say 2-of-3) so that neither the web service provider nor you have full ownership over your funds, so if either gets compromised your funds will not be stolen.

George Kimionis

Posted 2015-04-01T06:05:18.130

Reputation: 2 854