Dad: Son, what is a "PSBT"?

Son: Hi Dad,

"PSBT" stands for "Partially Signed Bitcoin Transactions".

It's a data format that allows wallets and other tools to exchange information about a Bitcoin transaction and the signatures necessary to complete it.

Dad: Ok, that is basically what makes air-gapped Bitcoin possible?

Son: Using a PSBT makes it possible to do this in a standardized way. The first version of PSBT (version 0) is described in BIP174 and PSBTv2 is described in BIP370. Nowadays, I wouldn't recommend a wallet not supporting PSBTs.

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