How Hardware Wallets Keep Crypto Keys Offline
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Hardware wallets store private keys offline, offering a cold-storage option for holders of Bitcoin, Ethereum and other cryptocurrencies.
Hardware wallets are physical devices designed to keep cryptocurrency private keys offline. Products from companies such as Ledger and Trezor offer an alternative to wallets that keep keys on internet-connected devices.
The devices hold the credentials needed to authorize transactions, rather than the cryptocurrency itself. Bitcoin, Ethereum and other digital assets remain recorded on their respective blockchains.
Keeping keys offline reduces their exposure to online attacks, but does not eliminate every risk. Protecting recovery information and checking transaction details remain important parts of using a hardware wallet.
Source: Decrypt
