What Is a Hardware Wallet and How Does It Work?

A hardware wallet is a physical device that stores a user's private keys in an offline environment. Its primary function is to sign transactions without exposing the private keys to an internet-connected computer.

When a user wants to make a transaction, they connect the device to their computer, and the transaction data is sent to the hardware wallet. The user then verifies the transaction on the device's screen and confirms it, and the wallet signs it internally.

This process ensures that the private keys never leave the secure, offline device.