Litecoin wallet checker

Submitted by - 15:41 In Part 1: What is a Wallet?, I briefly explained the "Block Chain", Bitcoin's complete transaction log, and I'd like to start this article by explaining a little bit more about the Block Chain and why it's important to Bitcoin.

First, take a moment to think about your bank. Aside from keeping your money in a safe, the bank maintains a system of record to track what you receive and what you spend. The bank tracks this for each of its clients, and though we cannot see the record, we trust that the bank is diligently and honestly tracking these transactions... But... what if you DON'T trust the banks?

One of the primary goals of Bitcoin is to create a system that doesn't require the trust of a central authority. To accomplish this, we need BOTH a system of record (the Block Chain), AND a way to ensure it remains visible to everyone. To satisfy the second requirement, Bitcoin's creator needed to get creative. If we were to keep the Block Chain only in the hands of a select few, we could never guarantee that they would keep it honest and transparent. In fact, the wider the distribution, the less trust is required. And if EVERY user possesses a copy, the trust required shrinks to zero. This is why, by default, the original Bitcoin client REQUIRED the user to possess his/her own copy of the Block Chain. (In a future section, I will describe why we can trust the Block Chain, how users maintain agreement on the Block Chain, and why its architecture helps keep Bitcoin honest.)

This original type of client is a "full client". It uses a locally-stored Block Chain and Private Key. (Remember, your private key determines your public address, AND authorizes you to spend the bitcoins located there. I'll be covering proper private key security later in this article.) Requiring every client to possess the Block Chain is awesome from a security standpoint, but it comes with some serious drawbacks. Weighing in at several Gigabytes (and growing), the Block Chain is really only practical to store on a computer with ample capacity. So what do you do if your computer is an old piece of junk that doesn't have the space to spare? Or better yet, how on earth would you pay for your groceries with Bitcoin if your key is on your computer? Clearly, you can't lug your PC into the store. That's where the next kind of client comes in, a "lite client".