Every CryptoNote coin interacts with the network through 2 binaries.
Default name is “cryptonotecoind”. Daemon is responsible for any communication with the network:
- Interaction with the blockchain, e.g. blocks relaying, getting info about the block, etc.
- Peer list look up
- Connections look up
- Transaction pool information and relaying
Default name is “simplewallet”. It carries out basic wallet's functions:
- Wallet creation
- Financial operations, e.g. sending, receiving, checking for incoming transfers, etc.
Simplewallet also allows user to start/stop mining without a need to specify the wallet in the daemon.
In CryptoNote only the simplewallet knows about user's private keys and funds. The daemon is used solely for the purpose of network communication. Simplewallet and daemon binaries work through JSON RPC. You may run the binaries from the separate machines, but for the security purposes you should make sure that daemon won't be accesible from anywhere but the simplewallet's ip address.