Remove client-side migration and reorganize wallets

[ekzyis]

Description

supersedes #2546 (merged into master already in #2585) #2553 (merged already in #2584) #2552 #2554

#2552 (comment):

It has been 2 months since we released #2169.

I think we can now remove the code to migrate wallets that are still stored locally.

Instead, we just delete them now and also delete the old IndexedDB.

#2554 (comment):

This PR is limited to moving files or functions around to make more sense:

• moved wallets/client/context into ../hooks
  • distinction didn't make sense
• hooks/ only contain hooks (function name must starts with use)
  • moved pure functions to wallets/lib/crypto
  • context providers are the exception
  • moved passphrase hooks into own file

Additional context

For me personally, it is definitely better to just have one big PR because I know what I did and then I can resolve conflicts between commits immediately. If I want to use the web interface to review and document my changes, I can also push to my own repository and do it there.

The small PRs were mostly meant to make review easier, but since that is apparently not really the case, I now squashed every individual PR into one commit that I added here.

I hope that is better.

Checklist

Are your changes backward compatible? Please answer below:

yes

On a scale of 1-10 how well and how have you QA'd this change and any features it might affect? Please answer below:

tested PRs individually before

For frontend changes: Tested on mobile, light and dark mode? Please answer below:

n/a

Did you introduce any new environment variables? If so, call them out explicitly here:

no

Did you use AI for this? If so, how much did it assist you?

no

---

Note

Reorganizes wallets by moving provider/reducer into hooks, removing v1→v2 client migration, extracting crypto utilities, renaming DnD component, and updating imports/usages across the app.

• Wallets Architecture:
  • Global Hooks: Move WalletsProvider, state, and actions into wallets/client/hooks/global.js; remove wallets/client/context/* (provider/reducer) and update all imports to @/wallets/client/hooks.
  • Migration Removal: Delete client-side migration logic; add cleanup of old localStorage wallets and old IndexedDB via useDeleteLocalWallets and useDeleteOldDb.
  • Key Handling: Initialize and validate keys in global.js; emit KEY_STORAGE_UNAVAILABLE, WRONG_KEY, KEY_MATCH actions.
• Crypto:
  • Extract deriveKey, encrypt, decrypt, generateRandomPassphrase to wallets/lib/crypto.
  • Split passphrase flows into wallets/client/hooks/passphrase.js; keep encryption/decryption/key APIs in wallets/client/hooks/crypto.js.
• Components & Hooks:
  • Rename components/draggable to components/dnd and update re-exports/consumers.
  • Update various hooks (indicator, diagnostics, payment, query, wallet) to use new global/crypto/logger/query modules and simplified imports.
• Pages:
  • Use WalletsProvider from @/wallets/client/hooks in pages/_app.js and pages/wallets/index.js; wire passphrase prompt and DnD reorder via new hooks.

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[huumn]

Just to be clear: not preferring 5 one-line PRs modifying the same 10 lines of code, all so closely related to each other that they practically conflict on all lines when merged out of order, does not mean we want big vague PRs. We're looking for goldilocks PRs - not as small as possible but also not a PR that's like here's everything I did this week.

Given that you "own" the wallet code, this PR is fine by me, but you didn't need to do this retroactively.

I know you understand this, but I feel like you're being kind of rigid, trying to treat PR size like a bunch of fixed rules, an algorithm, rather than an also vibes thing. It's as much an art as it is a science.

[ekzyis]

(I updated the description.)

@huumn can you review or just merge this?

I moved files around in this PR and this creates conflicts with basically any wallet change that I want to make in a separate PR that is not new code in new files like in #2575