Sparrow Wallet is a desktop Bitcoin wallet designed for security, privacy, and usability, offering advanced features for managing Bitcoin transactions and storage. Its key functions with Bitcoin include:
Secure Storage and Management: Sparrow is a non-custodial wallet, meaning users have full control over their private keys, which can be stored offline for enhanced security. It supports single-signature and multi-signature wallets, as well as integration with hardware wallets (e.g., Coldcard, Ledger, Trezor) for cold storage.Transaction Control and Transparency: Sparrow provides detailed coin control, allowing users to select specific Unspent Transaction Outputs (UTXOs) for transactions to optimize fees or enhance privacy. Its transaction editor supports Partially Signed Bitcoin Transactions (PSBTs), enabling users to edit transaction fields and inspect bytes before broadcasting. It also functions as a private blockchain explorer, showing transaction history and UTXO details.Privacy Features: Sparrow supports Tor integration to mask IP addresses and can connect to a user’s own Bitcoin Core node or private Electrum server to avoid leaking transaction data to public servers. It also supports BIP47 reusable payment codes for generating new addresses per transaction, reducing address reuse. Previously, it offered CoinJoin for mixing UTXOs, but this feature has been impacted by legal issues.Interoperability and Standards: Built on standards like BIP39 mnemonic seeds and PSBTs, Sparrow is compatible with various wallet types, including legacy and SegWit scripts, and supports importing/exporting wallets via recovery phrases or keystore files. It also works with testnet, regtest, and signet networks for testing.Hardware Wallet Integration: Sparrow seamlessly pairs with hardware wallets via USB or air-gapped methods (e.g., QR codes, SD cards), allowing secure transaction signing while keeping private keys offline.User-Friendly Interface: Despite its advanced features, Sparrow offers a tab-based, intuitive interface for managing accounts, transactions, and addresses, suitable for both beginners and advanced users. It includes transaction labeling and a visual transaction diagram to optimize UTXO usage.
