Electrum

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Electrum
Electrum logo-square.png
Founded 2011
Key People Thomas Voegtlin, Creator
Products Cold-storage Wallet
Twitter @ElectrumWallet
Website Electrum Home

Electrum is a bitcoin wallet developed by a programmer named Thomas Voegtlin and a number of other programmers across the world.[1]

How it works

Electrum is a bitcoin wallet. It holds the private keys of its user in a manner comparable to having a bank account; just as nobody can move money out of your bank account without your password and bank information, nobody can move your bitcoins out of your wallet without having access to your private keys.[2] Electrum users cannot import private keys from other bitcoin wallet clients.[3]

Simple Payment Verification

Electrum uses a technology called Simple Payment Verification (SPV), which is mentioned in bitcoin's original whitepaper written by Satoshi Nakamoto.[4] It allows a user to verify that a transaction was added to bitcoin's blockchain without requiring that user to download the entire blockchain. Instead, the user can use Electrum's SPV to download the block headers of the blockchain pertinent to the transaction, which requires less data.[5]

Seed

Electrum requires password verification before a user can move bitcoins in or out of the wallet. However, lost passwords cannot be recovered. The private keys of a user's bitcoin can be recovered using a "seed," which is a randomly-generated nonsense phrase that is tied to the letters and numbers in a person's private keys. The example of a seed given in Electrum's whitepaper is the phrase "slim sugar lizard predict state cute awkward asset inform blood civil sugar." Knowing the seed that corresponds to your private keys allows you to recover your wallet if you forget your password.[6]

Encryption

Electrum uses encryption to protect a user's data from hacking attacks. It uses two levels of encryption. The first layer of encryption is performed using through Advanced Encryption Standard (AES) 256-CBC. The second layer is an encryption of the wallet's data onto the disk drive of the user's computer.[7]

Payment management

The Electrum software client allows users to send each other invoices, or requests for payments in bitcoin. These are signed digitally by the person requesting the payments.

Electrum wallets keep a history of all of the payments sent and received by the user, which the user can check at any time. The software also allows the user to keep a list of contacts and wallet addresses.[8]

References

  1. About Electrum. Electrum Bitcoin Wallet.
  2. Frequently Asked Questions. Electrum Bitcoin Wallet.
  3. What is the seed?. Electrum Bitcoin Wallet.
  4. Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin.org.
  5. Simple Payment Verification. Electrum.
  6. What is the seed?. Electrum Bitcoin Wallet.
  7. What is the seed?. Electrum Bitcoin Wallet.
  8. Invoices. Electrum Bitcoin Wallet.