In this manner, a load balancer performs the following functions: Distributes client requests or network load efficiently across multiple servers. Ensures high availability and reliability by sending requests only to servers that are online. Provides the flexibility to add or subtract servers as demand dictates. load balancing diagram. Most of the time you don’t. For example, if you use a web wallet like Coinbase or Blockchain.info, they create and manage the private key for you. It’s the same for exchanges. Mobile and desktop wallets usually also generate a private key for you, although they might have the option to create a wallet from your own private key.