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Educational Post

What Is an Air-Gapped Wallet?

An air-gapped wallet is a type of cryptocurrency wallet that is designed to remain disconnected from the Internet and any form of wireless communication. The types of wireless communication that air-gapped wallets are disconnected from include Bluetooth, wifi, NFC (near-field communication), and sometimes even USB drives.

The term “air gap” comes from the concept of having a physical “gap of air” between the wallet device and any online networks or wireless communication, providing an extra layer of security against hacks and exploits.

How Does An Air-Gapped Wallet Work?

In order to facilitate transactions while remaining disconnected from the Internet and wireless communication, air-gapped wallets rely on scannable QR codes or micro-SD cards, which are small removable memory cards in which transaction data can be stored.

Air-gapped wallets commonly employ computer-based software applications that support Partially Signed Bitcoin Transactions (PSBTs) for Bitcoin or other similar partially signed transactions for different cryptocurrencies.

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