Blockchain & Cryptocurrency Glossary

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Air-Gapped Wallet

2 min read
Pronunciation
[air-gapt wol-it]
Analogy
Think of an air-gapped wallet as a vault inside a building with no doors, windows, or other connections to the outside world. To transfer anything in or out, specialized methods are used that don't compromise the isolation—like passing notes through a tiny, carefully controlled one-way slot. This makes it virtually impossible for digital thieves to break in remotely.
Definition
A cryptocurrency wallet that operates on a device that has never been connected to the internet or any network, and remains permanently disconnected. This physical isolation prevents remote attacks, malware infections, and unauthorized access to private keys, providing maximum security for high-value cryptocurrency holdings.
Key Points Intro
Air-gapped wallets provide exceptional security through complete network isolation.
Key Points

Physical isolation: The device storing private keys is never connected to the internet, eliminating remote attack vectors.

Transaction signing: Unsigned transactions are transferred to the air-gapped device, signed securely, and the signed transaction is transferred back for broadcasting.

Data transfer methods: Uses offline methods like QR codes, microSD cards, or USB drives to transfer data between online and offline environments.

Cold storage: Private keys remain in cold storage at all times, never exposed to an internet-connected environment.

Example
Sarah maintains an air-gapped wallet for her long-term Bitcoin holdings. When she needs to send funds, she creates an unsigned transaction on her online computer, transfers it to her air-gapped laptop via QR code, signs the transaction on the offline device, and then transfers the signed transaction back to the online computer for broadcasting to the network.
Technical Deep Dive
Air-gapped wallets typically employ a two-device architecture—one online device for interacting with the blockchain and one offline device for holding private keys and signing transactions. The offline device often runs specialized firmware or operating systems with minimal attack surface. Secure communication between devices happens via data transport methods that don't require network connectivity. Modern implementations may use Partially Signed Bitcoin Transactions (PSBT) format to facilitate this workflow, allowing complex transactions to be constructed online, signed offline, and then finalized and broadcast online.
Security Warning
Maintain strict air-gap discipline—never connect the air-gapped device to the internet or any network, even temporarily. Watch for sophisticated attack vectors that can bridge air gaps, such as electromagnetic emissions, acoustic exploitation, or optical channels. Only use open-source software from verified sources, and verify software integrity using checksums on a separate trusted device.
Caveat
While air-gapped wallets provide strong security against remote attacks, they are still vulnerable to physical theft, compromise during setup, supply chain attacks, or sophisticated side-channel attacks. Additionally, the complexity of maintaining proper air-gap protocols increases the risk of user error, potentially resulting in security compromises or loss of funds due to operational mistakes.

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