Wallet type: Paper wallet
Expert: Advanced user
Access: Private Key. Passphrase if chosen
Segwit: No. Legacy address only
Warnings: Many warnings about use, see below
Assets: BTC only
- Printable wallet you can pass to friends
- Attractive artwork
- Passphrase for added security
- Vanity wallets and split wallets
- Paper wallets no longer considered very secure.
- Brain wallets considered very bad for brute forcing. (attempts to open)
- Temporary data can be left on hard drives or printer memory.
- Should not be generated while online.
- High chance of loss due to water or fire damage.
Conclusion: Paper wallet were considered the most secure method before hardware wallets. The wallet can still be fantastic, but addresses will need to be generated offline and preferably by a computer that has never been connected the internet or will ever beconnected in the future. Security can be added with a passphrase.
How do they work?
The total available wallet addresses span into the multi trillions, the address is created with a high degree or entropy or randomness.
The chances you generate an existing address is quite low.
This generates a private key which in turn gets hashed into a public key and hashed again into an address.
Both the private key and address are displayed on the paper wallet.
It is a good idea to check the address to see if it is empty, it is a good idea to use the address sparingly and when you sweep the keys, spend all the funds.