Watch-Only Wallets: Tracking Funds Without Private Keys
A technical explanation of how watch-only wallets derive addresses, prepare PSBTs using extended public keys, and manage privacy risks.
PDF document · Published
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Contents
- Derivation Mechanics with Extended Public Keys
- Extended Key Types and Descriptors
- Transaction Construction and PSBTs
- Information Exposure and Privacy Risks
- FAQ
- Sources
- Keywords:
- watch-only wallet · xpub · BIP32 · PSBT · public key derivation
Guides on the same subject
- Hot Wallet vs Cold Wallet: Differences and When to Use Each
A hot wallet keeps its keys on an online device; a cold wallet keeps them offline. Speed, cost, risks and backups compared, and how to split funds between them.
- xpub, ypub and zpub: Extended Public Keys Explained
What xpub, ypub and zpub mean: how an extended public key works, which address type each prefix stands for, how to convert them and why to keep them private.
- BIP 32 Explained: Hierarchical Deterministic Wallets
BIP 32 defines HD wallets: one seed derives a tree of keys via chain codes and hardened or normal steps, and an xpub makes addresses without private keys.
One of the documents in the Seed Phrase PDF Archive, listed on archive page 12.