Clear DefinitionsSpending Password / Transaction PIN
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Pronunciation
[spend-ing pas-wurd / tranz-ak-shun pin]
Analogy
Like entering a PIN at an ATM before cash withdrawal.
Definition
A local PIN or password required to approve each transaction in a wallet application.
Key Points Intro
Spending PINs protect transactions via:
Key Points
Local check: Wallet UI prompts before signing.
Rate limiting: Multiple wrong attempts can lock wallet.
Offline use: PIN verification does not require network.
Complementary: Works with biometrics or seed.
Example
Trust Wallet prompts for a 6-digit PIN before broadcasting any transaction.
Technical Deep Dive
App encrypts private key with PIN-derived key (PBKDF2). On each tx, user enters PIN, app decrypts key in memory, signs tx, then re-encrypts.
Security Warning
Weak PINs can be brute-forced; combine with biometric lockouts.
Caveat
PIN in memory during signing; device malware could capture it.
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