"Did my money arrive?"
The transactions view is the wallet's home: every payment in and out, its confirmation
count, and the label you gave it. Because Sparrow is a lightweight client it gets this
history from an Electrum-protocol server rather than by validating the chain itself, so
a fresh wallet populates in seconds. Click any entry and you drop into the transaction
editor, which doubles as a blockchain explorer: you can walk backwards into the inputs
of a transaction that is not even yours.
"Give me an address, but not the same one twice"
The receive view hands you the next unused address and lets you attach a label before
anyone pays you. Addresses are derived from your keys in sequence, and Sparrow watches
a window of them called the gap limit, 20 by default. That number matters when
restoring: if you skipped far ahead and generated addresses beyond the window, a
restored wallet can look empty until you raise the limit.
Two newer options avoid address reuse entirely. Silent payments (BIP352) give you a
single reusable address that does not link its payers on-chain; sending to one arrived
in 2.3.0 and receiving wallets in 2.5.0. PayNym payment codes (BIP47) do something
similar between two people who have exchanged codes, at the cost of a one-off
546-satoshi notification transaction per contact. Pay-to-DNS support (BIP353) lets you
send to a human-readable name resolved over DNS rather than to a pasted string.
"I want to choose which coins move"
The UTXO view lists your unspent outputs individually, with labels and amounts, and
lets you freeze or select specific ones before building a transaction. Left to itself,
Sparrow picks inputs with Branch and Bound and Knapsack algorithms; override it and you
decide. This is the mechanical basis of every privacy practice on this site, because
which coins you combine in one transaction is what tells an observer that they belong
to the same person. The
privacy toolkit covers the policies to
apply on top of the tool.
"What exactly am I signing?"
The transaction editor is the feature the software is known for. Inputs and outputs
appear as an editable diagram, with the change output identified, the virtual size in
bytes, the fee and the resulting fee rate, and whether replace-by-fee is signalled. Fee
estimation charts sit next to it so a rate is a decision rather than a guess. A wrong
output or an accidentally enormous fee is visible here, while the transaction is still
unsigned and completely harmless.
Every unsigned transaction is a PSBT, the standard partially signed format, and Sparrow
treats PSBTs as a first-class citizen rather than an export option. That is what makes
collaboration possible: one machine builds, another signs, a third broadcasts.
"My keys should not be on this computer"
Keystores are configured per wallet. A software keystore keeps an encrypted key in the
wallet file. A connected hardware wallet signs over USB. An airgapped device never
touches the machine at all: the unsigned PSBT crosses as a QR sequence, using UR
fountain codes for transactions too large for one code, or on an SD card, and the
signed result comes back the same way. A watch-only wallet built from an xpub (the
extended public key that generates all your addresses without being able to spend from
them) lets you monitor funds on a machine that holds no secrets at all.