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Foundations: Wallets

What is a Hardware Wallet?A hardware wallet exists to solve a narrow but important problem: how do you use private keys on an internet-connected world without leaving those keys inside an internet-connected machine? The answer is a dedicated signing device that keeps secrets offline while still letting you approve real transactions

What is a Hardware Wallet?A hardware wallet exists to solve a narrow but important problem: how do you use private keys on an internet-connected world without leaving those keys inside an internet-connected machine? The answer is a dedicated signing device that keeps secrets offline while still letting you approve real transactions.Mar 21, 202623 min read

What is a Hot Wallet?A hot wallet is useful for exactly the reason it is risky: the keys or signing authority stay close to the internet so transactions can happen quickly

What is a Hot Wallet?A hot wallet is useful for exactly the reason it is risky: the keys or signing authority stay close to the internet so transactions can happen quickly. That design makes hot wallets the default interface for dapps, trading, and everyday onchain activity — and the part of crypto custody that demands the most careful security thinking.Mar 21, 202624 min read

What Is Key Derivation (BIP32/39/44)?Key derivation is the machinery that lets one secret back up an entire wallet

What Is Key Derivation (BIP32/39/44)?Key derivation is the machinery that lets one secret back up an entire wallet. BIP-39 turns randomness into words, BIP-32 turns a seed into a tree of keys, and BIP-44 gives wallets a shared map so different apps can find the same accounts and addresses.Mar 21, 202624 min read

What Is ERC-4337? How Ethereum Account Abstraction Works Without Protocol ChangesERC-4337 changes wallets by changing the path a transaction takes

What Is ERC-4337? How Ethereum Account Abstraction Works Without Protocol ChangesERC-4337 changes wallets by changing the path a transaction takes. Instead of forcing every user to act like a bare private key with ETH for gas, it lets smart accounts authorize actions through programmable logic while bundlers and an EntryPoint contract bridge that intent onto Ethereum.Mar 21, 202626 min read

What Is a Bech32 Address?Bech32 addresses look unusual on purpose

What Is a Bech32 Address?Bech32 addresses look unusual on purpose. Their lowercase alphabet, visible network prefix, and strong checksum were designed to make Bitcoin’s native SegWit payments cheaper to use and harder to mistype than older address formats.Mar 21, 202622 min read

What is a Cold Wallet?A cold wallet exists for a simple reason: if a private key never lives on an internet-connected machine, many common attacks stop working

What is a Cold Wallet?A cold wallet exists for a simple reason: if a private key never lives on an internet-connected machine, many common attacks stop working. That sounds straightforward, but the real story is in the mechanics — how offline keys still create valid transactions, where the protection is strong, and where it depends on careful backups and operational discipline.Mar 21, 202624 min read

What is a Custodial Wallet?A custodial wallet makes crypto easier by letting someone else hold the keys and handle recovery, trading, and transfers

What is a Custodial Wallet?A custodial wallet makes crypto easier by letting someone else hold the keys and handle recovery, trading, and transfers. That convenience solves a real problem, but it also changes what you actually own: not direct control of the asset, but a claim on the custodian that depends on its systems, honesty, and solvency.Mar 21, 202623 min read

What is Address Derivation?Address derivation is the step that turns keys into the account identifiers people actually use

What is Address Derivation?Address derivation is the step that turns keys into the account identifiers people actually use. It looks simple from the outside—a string you paste into a wallet—but under the hood it defines recovery, interoperability, privacy boundaries, and even what counts as the “same account” on different chains.Mar 21, 202623 min read

What is a Wallet & Blockchain Address?A wallet is not your coins, and an address is not your account in the same way on every chain

What is a Wallet & Blockchain Address?A wallet is not your coins, and an address is not your account in the same way on every chain. Once that distinction clicks, key management, backups, address formats, and common mistakes like sending to the wrong place become much easier to reason about.Mar 21, 202625 min read

What is Account Abstraction?Account abstraction changes a wallet’s most important rule: who is allowed to act, and under what conditions

What is Account Abstraction?Account abstraction changes a wallet’s most important rule: who is allowed to act, and under what conditions. Instead of forcing every account to behave like a single private key, it makes authorization programmable — which is why features like recovery, gas sponsorship, batching, and passkey-based wallets become possible.Mar 21, 202626 min read