Sparrow Wallet v2.5.4 Released with Enhanced Security and Reduced Reliance on External Servers

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Sparrow Wallet v2.5.4 is now live, addressing potential security breach risks and improving on-chain news responsiveness. The update reduces reliance on external servers such as Electrum and enhances support for Ledger, Keycard, Trezor, Payjoin, PSBT, and multisignature handling. Debug logs no longer expose Bitcoin Core credentials, and wallet directories are now restricted to owner access only. Tor DNS leaks have been fixed, and wallet import, signing, download, and server validation have been improved.

Odaily Planet Daily reports that Sparrow Wallet v2.5.4 has been released after extensive AI-assisted review, featuring multiple security enhancements designed to reduce users' reliance on external servers such as Electrum.

In addition, this version enhances support for Ledger, Keycard, Trezor, Payjoin, PSBT, and multisignature handling; removes Bitcoin Core credentials and other sensitive information from debug logs; restricts permissions for existing wallet and backup directories to owner-only access; closes residual local DNS resolution leaks when using Tor; and strengthens verification for wallet imports, signing, downloads, and server responses. This update expands Sparrow Wallet’s ability to independently verify transaction data, hardware devices, and other inputs, reducing reliance on external servers for data. (Bitcoin News)

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