public and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-private-key-secret-key/">private keys used to track crypto assets on specific blockchains.</p>\n<p>While it&rsquo;s common to say that hardware wallets store the actual cryptocurrency inside, they actually only provide access to the coins. For consistency&rsquo;s sake, the functionality of hardware wallets is referred to as storing.</p>\n<p>Hardware wallets have numerous advantages over <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hot-wallet/">hot wallets</strong></a> which require internet access to store cryptocurrencies. Cold wallets store private keys natively, offering reinforced security from malicious code. Private keys are used to identify the owner of the assets stored in the wallet. They also allow holders to transfer their crypto assets to and from the wallet.</p>\n<p>Hardware wallets come with two key security features &ndash; <strong>a secure PIN code and a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-seed-phrase/">seed phrase</a></strong>.</p>\n<p><strong>The seed phrase</strong> is required to access the wallet if the user has lost their PIN. Even if a wallet is stolen, it's nearly unhackable, as most models will reset and burn any stored assets if the seed phrase is entered incorrectly multiple times.</p>\n<p><strong>The PIN</strong> is the most frequently used security measure as the user must enter it to access the contents of the wallet. Furthermore, users should keep their physical wallets in a secure place to avoid losing them or having them stolen.</p>\n<p>Cold wallets can be used to sign any outgoing transactions. While the security measures are nearly fool-proof, the wallets themselves are easy-to-use for new investors or people who are not as tech-savvy. Hardware wallets can be used to store not only cryptocurrencies but also other assets, such as <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-fungible-token-nft/">non-fungible tokens (NFTs)</strong></a>.</p>\n<p>Some of the most popular hardware wallet brands are <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/ledger/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Ledger</strong></a>, <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/trezor/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Trezor</strong></a>, and <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/goon/keepkey/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>KeepKey</strong></a>. 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Terms","updated":false,"chapter":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters/crypto-101-glossary.jpg","chapter_simple":"https://assets.bitdegree.org/crypto/assets/crypto-book/chapters-simple/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}],"nextSection":{"id":399,"original_id":null,"author_id":41,"translator_id":null,"title":"What is Hash Power (Hashrate)?","slug":"what-is-hash-power-hashrate","section":"H","keyword":"Hash Power (Hashrate)","status":"published","definition":"the amount of computer power that a network consumes to operate.","content":"<p><strong>Hash power</strong>, or hashrate, is a unit of measurement used to determine how much power a network consumes to perpetually operate. It is used when discussing the power requirements of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptocurrency/">cryptocurrency networks or individual <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-mining-rig/">mining rigs</strong></a> on said networks.</p>\n<p>Mineable cryptocurrencies, such as <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin (BTC)</strong></a>, are managed by networks of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-miner/">miners. The miner community can consist of individuals and organizational entities that provide computational power from their crypto mining devices to process and verify transaction information, as well as create new <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block/">blocks and new coins.</p>\n<p>The mining process is conducted by calculating <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-cryptographic-hash-function/">cryptographic hashes</strong></a>, which are strings of pseudorandom data. Hashes help to avoid <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-double-spending/">double-spending. The calculation process ensures that all crypto coins are verified and cannot be produced out of nowhere. This process employs a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-work-pow/">Proof-of-Work (PoW) consensus mechanism</strong></a>.</p>\n<p>The hash power of a mining rig is determined by <strong>the number of hashes calculated per second</strong>. The hashrate of a cryptocurrency network is calculated by adding up the hashrates of all mining rigs in operation at the given time.</p>\n<p>The hashrates of individual mining devices are used to determine their profitability. A <strong>good hashrate</strong> produced by a well-optimized mining rig improves the chances of finding the correct hash computation, thus producing a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-mining-reward/">mining reward</strong></a>.</p>\n<p>The overall hash power of a network helps determine <strong>how secure the asset in question is</strong>. This information is relevant to parties that aim to breach the network. Hackers must overcome the total hash power of the network which is nearly impossible in networks that have <strong>significantly high hash rates</strong>.</p>\n<p>The hash power may vary between different devices. <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-central-processing-unit-cpu/">CPUs, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-graphical-processing-unit-gpu/">GPUs, and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-asic/">ASICs all provide different computational power and are <strong>not equally optimized for their network tasks</strong>.</p>","level":"easy","meta_title":"What is Hash Power (Hashrate)? Definition & Meaning | Crypto Wiki","meta_description":"Hash Power (Hashrate) meaning: Hash Power (Hashrate) - the amount of computer power that a network consumes to operate.","meta_keywords":null,"language":"en","created_at":"2022-03-17T08:20:15.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-hash-power-hashrate"},"prevSection":{"id":397,"original_id":null,"author_id":41,"translator_id":null,"title":"What is Hard Fork Combinator?","slug":"what-is-hard-fork-combinator","section":"H","keyword":"Hard Fork Combinator","status":"published","definition":"a tool used to combine protocols on the Cardano blockchain if a hard fork has occurred.","content":"<p>A <strong>Hard Fork Combinator</strong> is a tool used in the <a href=https://www.bitdegree.org/"https://en.wikipedia.org/wiki/Cardano_(blockchain_platform)/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Cardano</strong></a>&nbsp;ecosystem to combine protocols after a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-hard-fork-blockchain/">hard fork</strong></a> event.</p>\n<p>A hard fork splits one <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain into two distinguishable protocols which run parallel to each other. The new blockchain branch loses the history of the prior blockchain. A hard fork occurs when new upgrades are implemented into the blockchain. It can modify some of the protocol parameters.</p>\n<p>Hard forks may also occur <strong>on the live blockchain</strong>, which can compromise the integrity of the network. In 2017, a hard fork occurred on the <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-bitcoin-btc/">Bitcoin blockchain</strong></a>, leading to the <strong>chain split</strong>. The event had a significant impact on the interests of Bitcoin investors and caused the formation of Bitcoin Cash (BCH).</p>\n<p>Hard forks often cause downtime in the blockchain ecosystem which can negatively impact the user experience and disrupt any <strong>ongoing</strong> transactions. If a hard fork occurs, the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">network nodes</strong></a> are unable to update to the newly set parameters and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block-header/">block headers</strong></strong></a> simultaneously, without experiencing system interruptions. The blockchain then has to be taken into downtime.</p>\n<p>Although a hard fork may occur on any blockchain, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-input-output-hong-kong-iohk/">IOHK developed the hard fork combinator as a solution specifically for the <strong>Cardano ecosystem</strong>. The hard fork combinator merges both the pre and post-upgrade protocols together to eliminate the possible interruption or restart issues.</p>\n<p>With the hard fork combinator, several protocols can appear as a single <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-ledger/">ledger. This <strong>prevents the network nodes from having to update</strong> to the new blockchain simultaneously.</p>\n<p>In July 2020, Cardano received upgrades, moving from the wallet-only Byron protocols to proof-of-stake-supported Shelley protocols. During the upgrade, the utility of the blockchain was altered by the hard fork.</p>\n<p>This was a <strong>risky procedure</strong>, as Cardano contained over 1 million <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-wallet/">wallets at the time. Any issues with the hard fork execution could have been detrimental to the Cardano ecosystem as a whole.</p>\n<p>The <strong>Byron-to-Shelley transition was successfully completed</strong> on 29 July 2020, at 21:45 UTC. Users received notice about the ongoing upgrade. However, the use of the Cardano function was not restricted and the hard fork processes were completed in the background. This allowed the network nodes to transition between protocols sequentially.</p>\n<p>Thanks to the <strong>hard fork combinator</strong>, the Cardano blockchain has been able to maintain both Byron and Shelley blocks. The tool will be implemented in future upgrades to support the transitional process.</p>","level":"medium","meta_title":"What is Hard Fork Combinator? Definition & Meaning | Crypto Wiki","meta_description":"Hard Fork Combinator meaning: Hard Fork Combinator - a tool used to combine protocols on the Cardano blockchain if a hard fork has occurred.","meta_keywords":null,"language":"en","created_at":"2022-03-17T07:58:05.000000Z","updated_at":"2022-05-13T14:32:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-hard-fork-combinator"},"currentChapter":"H","currentSection":"what-is-hardware-wallet","chapterTitle":"H","readingLevel":"medium"},"url":"/crypto/learn/crypto-terms/what-is-hardware-wallet","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">
Handbook Cover Page
Crypto Terms: Letter H

What is Hardware Wallet?

Hardware Wallet MEANING:
Hardware Wallet - a physical electronic device to store cryptocurrency.
Medium
2 minutes

Let's find out Hardware Wallet meaning, definition in crypto, what is Hardware Wallet, and all other detailed facts.

A hardware wallet, a cold wallet, or cold storage, is an electronic device used to store cryptocurrencies. It resembles a USB stick in its design. Hardware wallets create an isolated space to store the public and private keys used to track crypto assets on specific blockchains.

While it’s common to say that hardware wallets store the actual cryptocurrency inside, they actually only provide access to the coins. For consistency’s sake, the functionality of hardware wallets is referred to as storing.

Hardware wallets have numerous advantages over hot wallets which require internet access to store cryptocurrencies. Cold wallets store private keys natively, offering reinforced security from malicious code. Private keys are used to identify the owner of the assets stored in the wallet. They also allow holders to transfer their crypto assets to and from the wallet.

Hardware wallets come with two key security features – a secure PIN code and a seed phrase.

The seed phrase is required to access the wallet if the user has lost their PIN. Even if a wallet is stolen, it's nearly unhackable, as most models will reset and burn any stored assets if the seed phrase is entered incorrectly multiple times.

The PIN is the most frequently used security measure as the user must enter it to access the contents of the wallet. Furthermore, users should keep their physical wallets in a secure place to avoid losing them or having them stolen.

Cold wallets can be used to sign any outgoing transactions. While the security measures are nearly fool-proof, the wallets themselves are easy-to-use for new investors or people who are not as tech-savvy. Hardware wallets can be used to store not only cryptocurrencies but also other assets, such as non-fungible tokens (NFTs).

Some of the most popular hardware wallet brands are Ledger, Trezor, and KeepKey. Most cold wallets are able to support multiple cryptocurrencies on different blockchains and may be compatible with some software-based wallets.
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