Hardware Wallet
A physical device that stores cryptocurrency private keys offline and signs transactions securely.
In-Depth Explanation
Hardware wallets (Ledger, Trezor, GridPlus) keep private keys on a secure chip that never exposes them, even when connected to a compromised computer. Transactions are signed on-device after user verification. They're the gold standard for self-custody security, though users must still protect seed phrases and verify transaction details on-device.
Related Terms
Cold Wallet
A cryptocurrency wallet that stores private keys offline, providing enhanced security against online threats.
Wallet
Software or hardware that stores private keys and enables users to send, receive, and manage cryptocurrency.
Seed Phrase
A sequence of 12-24 words that encodes a wallet's private keys, enabling backup and recovery.
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Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.