What Is a Signer Wallet?

1 min read
DeFi Guides

Along with storing digital assets, signer wallets are used to sign off and execute transactions on and off-chain. Most applications for buying, selling and staking cryptocurrencies or minting and trading NFTs require connecting or creating a wallet that acts as both a signer and storage tool.

Such wallets are non-custodial, meaning you are the only party controlling the private keys. Alternatively, neither the wallet provider nor any other third party can access sensitive information and manage the stored assets.

Why Are Signers Important?

From a security perspective, it’s not a good idea for web-based wallet interfaces to store private keys. This means web-based wallets can’t sign and execute transactions – creating the need for a signer wallet.

The signer wallet generates and stores the private keys and the digital signature needed for signing and broadcasting transactions. This process happens externally of the wallet application you are using. That way, even if there is a problem with the dApp you use as a wallet (e.g., its interface fails), you will still be able to safely access and manage your digital assets through your Identity.

Signer wallets are a critical element, improving the resilience of decentralized identity systems and enabling them to function properly. They help ensure the security and integrity of dApp wallet services by preventing unauthorized transaction execution.

The practice of using signer wallets eliminates the theft risk. It ensures users’ peace of mind even when storing large amounts of cryptocurrencies.

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