In this episode of “The Van Wirdum Sjorsnado”, hosts Aaron van Wirdum and Sjors Provoost discussed the integration of hardware wallet into Bitcoin Core, one of the ongoing projects to which Provoost regularly contributes.
Hardware wallets are a popular solution for storing private keys offline to minimize the risk of hackers gaining access to the associated coins. They are used in conjunction with regular software wallets to sign transactions so that the private keys never leave the device.
The Bitcoin Core project has also worked on hardware wallet integration, which would provide users with the security of storing private keys on an offline device along with the security of a full node. An important part of this project is the Hardware Wallet Interface (HWI), a Bitcoin Core compatible program designed to communicate with a range of hardware wallets.
Provoost explained how Bitcoin Core and HWI are gradually becoming more closely integrated. Until now, HWI could already be used in conjunction with Bitcoin Core by letting users copy / paste data between the two programs. This will now be automated in the next Bitcoin Core release, at least for command line users. The next step is to use Bitcoin Core graphical user interface hardware wallets as well.
Finally, the hosts discussed some alternative solutions to use hardware wallets in conjunction with full node security, such as the Specter wallet.