What Is An Air-Gapped Wallet And How Do They Work?

What Is an Air-Gapped Wallet?

An air-gapped wallet is a specialized type of cryptocurrency wallet intentionally isolated from the Internet and all forms of wireless communication, including Bluetooth, Wi-Fi, NFC (near-field communication), and at times, even USB connections.

The term “air gap” originates from the idea of maintaining a physical separation or “gap of air” between the wallet device and any online networks or wireless communication channels. This deliberate isolation enhances security measures, shielding the wallet from potential hacks and cyber exploits.

How Does An Air-Gapped Wallet Work?

To enable transactions without an Internet or wireless connection, air-gapped wallets utilize scannable QR codes or micro-SD cards. These small, removable memory cards can store transaction data securely.

Air-gapped wallets typically employ computer-based software applications that support Partially Signed Bitcoin Transactions (PSBTs) for Bitcoin or similar partially signed transactions for various cryptocurrencies, ensuring the seamless execution of transactions even in an offline environment.

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