The term wallet can refer to either a wallet file or a wallet application. Wallet files are files used to store private keys. Wallet applications are clients that manage private/public key pairs, sign transactions, and interact with the peer-to-peer network to get information from the blockchain and to broadcast new transactions .
Decred supports both single chain and Hierarchical Deterministic (HD) wallet formats.
dcrwallet is a node daemon that handles Decred wallet functionality for a single user. It tracks balances across addresses, allows stakeholders to participate in Proof-of-Stake (PoS) voting, and manages all of the user’s accounts, addresses, and transactions.
dcrwallet can operate in two distinct modes. The first (and default) mode is to communicate with a single trusted dcrd instance using a JSON-RPC server inspired by the Bitcoin Core RPC server. The second is the privacy-preserving Simplified Payment Verification (SPV) mode.