WingCash Forum

A Wallet versus An Account

I describe WingCash as a System of wallets that hold digital currencies. I have presented enough to know that when I say the word “wallet” most listeners are thinking “account”. Wallets and accounts have important differences:

  1. An account holds a balance that is the sum of the debits and
    credits entered in the account.

  2. A wallet has a sum of the face value of the bearer payment
    instruments it holds.

  3. Accounts represents USD $1 in the same way.

  4. A wallet can represent USD $1 in 293 different ways using the face
    value of the coins that sum to a dollar.

  5. An financial account is usually represented by a unique number.

  6. A wallet is represented by an address and in the case of WingCash
    that address is expanded to be a full Uniform Resource Locator ("URL’) or Uniform
    Resource Identifier (“URI”).

  7. A financial account is usually denominated in a single currency.

  8. A wallet can hold multiple currencies.

Here’s an example of a customized wallet address on the WingCash system:

Here’s the same address without customization:

A wallet address is a payment address and can have other addresses aliased to it. For example here’s my customized personal wallet address:

It has my customized Facebook address:

aliased to it.

I’d like to clarify points 3 and 4. A wallet can represent USD $1 as a dollar bill, or as 4 quarters, or as 100 pennies, etc. In all, there are 293 possible ways to combine the standard denominations to make USD $1. An account has no such variety. This alone doesn’t make wallets better or worse than accounts, but it is an interesting and notable difference.

I wrote this original post and then realized that the list was missing another meaningful difference:

  1. An account may have a negative balance*.

  2. A wallet has the sum of the face value of the payment instruments it holds (not a balance) and therefore may not be negative or fall below zero. This make sense primarily because a -$1.00 hasn’t been defined as a standard monetary unit of value.

*A balance is a comparison of debits and credits.