Wallet
wallet · security
Software or hardware that manages signing credentials, addresses, transactions, and access to blockchain assets.
A cryptocurrency wallet manages the credentials and data needed to receive assets and authorize transactions. Assets are represented in blockchain state; they are not stored inside the app or device like files.
A custodial service signs or controls withdrawals for the user. A non-custodial wallet gives the user the signing keys or recovery material. Multisignature and contract wallets can divide authority across several keys or rules.
Wallets can use a full node, SPV protocol, compact filters, or a provider API to learn balances and history. Those choices affect privacy and verification. Recovery can also depend on a passphrase, derivation path, script type, or wallet metadata in addition to the seed phrase.
Related terms
Private Key
→Secret cryptographic material used to produce signatures or other authorization proofs.
cryptography · security · wallet
Seed Phrase
→A human-readable backup that can recreate a wallet’s private keys, addresses, and spend authority.
wallet · security
Custodial Wallet
→A wallet where a third party controls the private keys on your behalf.
wallet · security
Non-Custodial Wallet
→A wallet in which the user controls the signing keys or authorization needed to move funds.
wallet · custody
Hardware wallet
→A physical signing device that keeps private keys isolated while approving cryptocurrency transactions.
wallet · security