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How do Bitcoin Wallets Maintain Address Balances?

Moussa by Moussa
February 12, 2026
in Bitcoin
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How do Bitcoin mining pools typically handle payout frequency versus thresholds?
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Does a Bitcoin software wallet (not the Bitcoin core wallet) read the entire blockchain to gather balance information? Or does it read the UTXO set? Or some other data source? Does it need to read it every time it wants to retrieve balance information, or does it simply read the last transactions posted to the blockchain?

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