How Do Hardware Wallets Mitigate the Risk of Public Key Exposure?

Hardware wallets mitigate the risk by generating and storing the private key in a secure, isolated chip that never exposes the key to the internet or the host computer. While the public key is transmitted for transaction signing, the private key remains secure.

Even if the public key is compromised or targeted by a future preimage attack, the private key, which is needed to authorize transactions, remains protected offline.