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.
Glossar
Hardware Wallet
Meaning ⎊ A Hardware Wallet is a physical electronic device specifically engineered to store a user's private cryptographic keys in an offline, secure element, isolating them from internet-connected computers and potential malware.
Private Keys
Ownership ⎊ Private Keys are the secret cryptographic credentials that mathematically prove ownership and grant exclusive control over associated cryptocurrency addresses and the assets they secure.