The scenario is that user 1 is on Kraken.com and user 2 has a (new) hardware wallet.
In reality user 1 can be on a different part of the world on a different computer than user 2. The hardware wallet does not have to be connected to receive or verify a transaction. The computer is a Microsoft Windows Surface Pro 4 tablet with Windows 10.
The hardware wallet is a Ledger Nano S from ledgerwallet.com.
User 1:
The user 1 accessed kraken.com through the Microsoft Edge browser and logged in with username, password and Google Authenticator (two-factor).
He pays the fee (in this case 0.001 bitcoin) and transfers the bitcoins (in this case 0.004 bitcoins) to the address provided (phone, email, etc.) by user 2.
The transaction is now complete. User 2 does not have to take any further action. User 2 can verify the transaction by opening his wallet:
User 2:
The hardware cryptocurrency wallet Ledger Nano S operates with its own cryptocurrencies wallet interfaces: Ledger Apps (free Google Chrome applications).
The user 2 has previously already installed the 'Ledger Wallet Bitcoin' Google Chrome app from LedgerWallet.com on the tablet.
User 2 starts the 'Ledger Wallet Bitcoin' application on the tablet.
User 2 connects the hardware wallet trough USB. This also powers on the hardware wallet.
User 2 enteres his pin on the physical hardware wallet by pressing the buttons on the hardware wallet (not on the computer) and selecting the right numbers. Then he selects the bitcoin wallet (and not the Ethereum) on the hardware wallet.
The 'Ledger Wallet Bitcoin' application detects that the hardware wallet has been enabled and shows the transaction of user 1.
Because the hardware wallet is new and had never been used before the transaction of 0.004 bitcoin is the same as the total (upper right in the picture).
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