Crypto inheritance glossary

A plain-language glossary of crypto inheritance terms. Every definition also explains why the term can matter in an inheritance context. Use it when a document, an email from a platform, or a conversation with a professional uses a word you do not recognise.

2FA (two-factor authentication)

An extra login step (a code from an authenticator app, a text message or a hardware key) required in addition to a password. In an estate, 2FA can be the difference between access and a locked account, because the recovery codes often exist somewhere the person who passed away kept them. See 2FA and wallet access after a death.

Address (wallet address)

A long string of letters and numbers that identifies where crypto can be sent. On many blockchains, such as Bitcoin and Ethereum, addresses and transactions are publicly visible. That does not apply to every network: privacy-focused cryptocurrencies can shield this information. Finding one in the estate’s documents is a clue, not access. See why a visible wallet balance does not prove access or ownership.

Altcoin

Any cryptocurrency other than Bitcoin. Altcoins often have their own wallets, exchanges and networks, so the estate may need several different routes to access them.

Authenticator app

An app that generates time-based login codes for 2FA. After a death, the phone holding the app matters more than the passwords: without the app or its recovery codes, the account may be locked even if the password is known.

Backup (recovery backup)

A separately stored recovery copy or recovery set that can be used to reconstruct access when the primary device or wallet file is lost. Finding a backup after a death can be the entire solution; losing or touching it incorrectly can be the entire problem. See what did you find?.

Beneficiary

A person or entity entitled to receive assets. Because few platforms offer beneficiary designations, crypto is often handled through the estate process rather than a direct transfer. See exchange accounts after a death.

BIP-39

The technical standard most wallets use to generate a seed phrase: words are chosen from a fixed word list, and the wallet’s keys are derived from them. The standard lengths are 12, 15, 18, 21 or 24 words; some wallets use other formats. See what is a seed phrase.

BIP38

passphrase-protected private key (6P…)

A standard for protecting a private key with an extra password, mainly used for older paper wallets. Such a key can be recognised by a string starting with 6P; without the password the key is unusable. See private key.

Block explorer

A website or tool for looking up transactions and addresses on a blockchain. An address or transaction ID can be checked there, but a visible balance is not proof of access, ownership or authority. See what did you find?

Blockchain

A shared record of transactions for a cryptocurrency. Which information is publicly visible varies by blockchain; with some privacy-focused cryptocurrencies, for example, sender, recipient or amount may be shielded. It does not show who controls the keys today, which is why blockchain records are evidence, not access.

Broker (OTC desk)

over the counter

An intermediary or service that brings a buyer and seller together outside an exchange (over the counter). Such a route can be used for larger or less liquid positions; first establish who is authorised and which procedure applies.

Cold storage

A storage method in which private keys or the signing environment are kept offline. The crypto itself remains recorded on the relevant blockchain. Cold storage is common for long-held assets; an estate may come across such storage, for example in a safe.

Custodian

A person or company that holds crypto or keys on someone else’s behalf. After a death, a custodian may hold part of the access chain. Record which custodian is involved and with which account or contract details that relationship can be shown; the legal documents determine or support who is authorised to act for the estate, depending on the jurisdiction and the situation.

DeFi (decentralised finance)

Financial applications built on blockchains, staking, lending, liquidity pools. DeFi positions do not stop after a death: lock-ups, unbonding periods and liquidations continue, and the estate needs the records and keys. See DeFi positions after a death.

Descriptor

wallet descriptor / output script descriptor

A technical description of how a wallet builds its addresses and keys. With some wallets, including multisig, this configuration is needed alongside the keys to recover the wallet. So preserve any configuration or export files found together with the keys.

Encrypted container / encrypted drive

Storage protected by encryption, a VeraCrypt or TrueCrypt container, a BitLocker-encrypted disk, a LUKS volume, or a password-protected archive or backup. The encryption protects whatever is inside, which is often the wallet files or backups themselves. Do not experiment on the only original medium, and do not run repair, formatting or recovery actions before it is clear which encryption system was used. Preserve the medium and any written password separately. See encrypted drives and containers after a death.

Ethereum keystore (JSON keyfile)

A specific type of JSON file, common with Ethereum wallets, that stores an encrypted private key protected by a password. Not every .json file is a wallet or keystore; files from an Ethereum keystore folder, including files starting with UTC--, can therefore be relevant. See the wallet format library.

Exchange

A platform account where the provider controls the assets or the associated key infrastructure. Crypto on such a custodial account follows the platform’s official procedure for customers who have passed away; technical recovery is usually not needed. Decentralised exchanges (DEXs) are on-chain trading protocols; using one does not automatically mean a central party holds the assets. See exchange accounts after a death.

Executor

The person appointed in a will to administer and settle the estate within their powers. A standard executor administers the estate and pays debts and legacies; how and by whom the assets are distributed depends on the role and the applicable estate law. An executor with extended powers may have further authority. Without a will, no administrator is automatically appointed; the heirs act themselves or through the local estate procedure. See the executor’s guide to a crypto estate.

Extended public key

xpub / ypub / zpub

A public key that can be used to view addresses and transaction history within part of a wallet (xpub, ypub or zpub). Such a key cannot sign and does not automatically show the whole wallet. Treat it as privacy-sensitive and keep it with the technical records.

Hardware wallet

A physical device (such as a Ledger, Trezor or BitBox) that protects cryptographic keys and can sign transactions. A working device that can be unlocked with the correct PIN or device password may, depending on the model and configuration, still provide access to the wallet without the recovery phrase being immediately needed. The recovery phrase or other wallet backup matters mainly when the wallet must be restored on another or reset device. If an extra passphrase was used, that passphrase may also be needed. See how to preserve a hardware wallet.

Hex (hexadecimal)

0–9 and a–f

A common notation for numbers and data, using the characters 0–9 and a–f. A private key can for example be written as 64 hex characters; such a string is secret. See private key.

Hot wallet

A wallet connected to the internet, a phone app, desktop program or browser extension. Hot wallets are easier to access, and a phone or computer may still hold a logged-in session — a reason to preserve the device unchanged (do not unlock, update or “check” it) until preservation has been assessed and authority is confirmed.

Inheritance tax / estate tax

Tax on assets passing after a death. The tax treatment of crypto after a death varies by jurisdiction, including classification, valuation date, reporting obligations and possible exemptions. See valuation, tax and reporting.

Key share (MPC)

A cryptographic share held by a device or party in some MPC wallets. Multiple shares can be needed together to sign a transaction, without the full private key being combined or becoming visible. How many parties are needed and how recovery works differs per wallet. Preserve any found key-share and recovery material safely and first establish which wallet and recovery procedure is involved. See exchange account or self-custody.

Liquidity pool

A DeFi structure where users supply assets to enable trading. A liquidity position can be recorded differently depending on the protocol and version, for example as a fungible LP token, an NFT/position token or another position; the estate therefore needs the records of which pools and positions were used. See DeFi positions after a death.

Mnemonic phrase

A sequence of words used to record information in a more readable form. With modern crypto wallets, the term is often used for a seed or recovery phrase. With some older wallets, a mnemonic could have a different recovery function, for example recovering wallet data or a password. The meaning therefore depends on the wallet format concerned. See seed phrase.

Multisig (multi-signature)

A wallet requiring a pre-set minimum number of signatures to move funds, for example 2 of 3. Which signers are technically needed depends on the configured threshold and on which required signing keys are available. Multisig can be used deliberately for inheritance. See bitcoin multisig inheritance.

NFT (non-fungible token)

A unique token on a blockchain that can refer to, for example, digital art, a collectible, a domain name, a membership or another right or object. The blockchain records the token and the address where it sits; which legal or contractual rights are attached to it does not automatically follow. In an estate, it is therefore relevant to identify the token, chain, contract address and token ID; have legal rights established separately where needed. See NFTs in an estate.

Notary

A legal professional who authenticates documents and, in many countries, administers succession, issuing certificates of inheritance and verifying who may act. The role and its powers differ strongly by country. See getting help.

Paper wallet

A physical document with a public address and the corresponding private key, often as text or a QR code. A paper seed phrase is a seed backup, not a classic paper wallet. Paper wallets are fragile and often found in unexpected places after a death, and must be preserved exactly as found. See paper wallets after a death.

Passkey

A sign-in or unlock method in which an account or wallet is opened through a secure device, for example with a fingerprint, face recognition or the phone or computer’s PIN, without a traditional password or seed phrase. Some modern wallets and smart accounts use passkeys as an owner or signer method. After a death, it matters to find out which devices and accounts are linked to the passkey. See smart-contract wallets

Passphrase

An extra word or string added on top of a seed phrase to protect a wallet. Without the passphrase, the seed phrase alone may not restore the funds, a common cause of “found the words but nothing is there”. See wallet passwords and passphrases.

Private key

A private key is a secret value that can create valid cryptographic signatures. Whether a single private key is by itself enough to move crypto depends on the wallet, script or contract configuration. With multisig or some smart-contract wallets, for example, additional signatures or authorisations may be required. Technical signing authority is moreover not the same as legal ownership.

Never photograph or send it, and never enter it anywhere just because a website or app looks official. First check in the current official documentation of the wallet concerned where and how recovery is supposed to take place (see official channels and source verification). If what you see on screen differs from the official recovery procedure, or you are unsure, do not enter anything.

A private key is one key, usually a long string of letters and numbers; a seed phrase is recovery material from which a deterministic wallet can derive a set of keys, possibly together with an extra passphrase. See what is a private key and what is a seed phrase.

Probate / certificate of inheritance

Documents that, depending on their type, can show who the heirs are and/or who is authorised to act on behalf of the estate or the heirs for certain actions. They do not automatically give a general right to administer the entire estate. Which meaning and powers attach to them depends on the document, the applicable law and the specific situation. The name depends on the country, probate, letters of administration, certificate of inheritance, certificat d’hérédité, Erbschein. Institutions may require one before they release assets; which document is needed depends on the institution, the jurisdiction, the role of the person involved and the specific situation. See crypto estate documents explained.

Public key

The non-secret part of a cryptographic key pair that can verify signatures made with the corresponding private key. For some address types, a wallet address is derived from a public key or a hash of it; other addresses, for example certain script or smart-contract addresses, are formed differently. A public key is therefore not the same as a wallet address and can be privacy-sensitive. Public keys can appear in records or technical data. A private key, by contrast, is secret access material, but in an estate it can precisely be found on paper, in a file, or in an old backup. Treat any unknown key carefully and do not share or photograph it.

Safe

smart-contract wallet · formerly Gnosis Safe

A widely used smart-contract wallet (formerly Gnosis Safe). A Safe can have one or more owners and uses a set threshold for transactions. It can therefore be a 1-of-1 Safe or be set up as a multisig with multiple owners. The Safe contract itself has no seed phrase. See smart-contract wallet.

Security key (YubiKey)

A physical device used as a second factor for 2FA, for example a YubiKey. Without it an account can stay locked even when the password or PIN is known; backup codes can sometimes be an alternative. Preserve a found security key and record that it exists. See 2FA and wallet access after a death.

Seed phrase

Recovery phrase / mnemonic phrase

The words that can restore a wallet. Standard BIP-39 lengths are 12, 15, 18, 21 and 24 words; some wallets use other counts. A seed phrase is highly sensitive recovery material. With many wallets, someone with the correct words can restore access. If an extra passphrase or other security was set up, that may also be needed. Possession of the words does not prove legal ownership or authority. In an estate, finding it is the goal; typing, photographing or sharing it is the classic mistake. See what is a seed phrase and you already made a mistake.

Self-custody

non-custodial

A model in which the user or users – not a central exchange or custodian – control the necessary authorisation over the assets. This can work through traditional private keys or a seed phrase, but also through other wallet-specific mechanisms; a single seed phrase or locally stored private key is therefore not always required. After a death, both the relevant authority and the exact wallet and recovery model must be established. See exchange account or self-custody.

Signer

signing device / signatory

A device, program or party that signs transactions on behalf of a wallet. With some wallets the key stays on a separate device (an external signer) and never leaves it. In an estate, what matters is who has the device and the corresponding access.

Smart-contract wallet

A wallet controlled by a smart contract rather than a simple key pair, used by Safe and account-abstraction wallets. The contract itself has no seed phrase, so recovery follows different rules. See smart-contract wallets.

Staking

Participating in a proof-of-stake system, directly or through a pool or provider, to contribute to network security and potentially receive rewards. Whether assets remain locked, are directly withdrawable or are represented by a liquid token depends on the staking method used. Staked positions may have unbonding periods that continue after a death. See DeFi positions after a death.

TOTP (time-based one-time password)

The technical standard behind the time-based codes that authenticator apps generate for 2FA, for example on exchanges and wallets. The code changes periodically. New TOTP codes can be generated with the associated setup key, for example via an authenticator app. Backup or recovery codes do not generate TOTP codes, but depending on the provider they can offer an alternative login or recovery route. After a death, both the authenticator or setup key and any recovery codes can therefore be relevant. See 2FA and wallet access after a death

Unbonding (unstaking period)

The period after a withdrawal or exit request is submitted for staking or a validator, during which the assets remain locked before they become available. This period continues after a death and affects when assets become available. See DeFi positions after a death

Wallet software

The program that manages keys and addresses, a desktop app, phone app or browser extension. Different software uses different file formats, which is why the estate should identify the format before touching it. See the wallet format library.

wallet.dat

The wallet file used by Bitcoin Core and other Bitcoin-family clients (Litecoin, Dogecoin and similar). It can contain the wallet’s keys, depending on the wallet version and configuration. Always keep an unchanged copy of the original file before loading, migrating, converting or repairing it; compatibility differs per wallet generation and software version, so do not make changes on the only copy. See wallet.dat files.

Watch-only wallet

A wallet that can view addresses and balances but cannot sign, because the private keys are missing. A found wallet file can be watch-only; the file then proves no spendable keys or funds. See the wallet format library

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Found a term in a document that is not here? Start with what did you find?, identification comes before understanding.