Why the need to protect them from water?

Usually the method of carry takes care of any water concerns, zip lock, match safe, pill fob ... duck tape, aluminum foil



all you need is fuzz, can be real short fuzz but if you've got water in your cotton sponge, it will interfere with flames

See U5pmQj_GD0k ? WetFire and Cotton ball fire starter soaked in water - YouTube
You know what is different? The whole cotton ball gets a coat/shell of petroleum jelly, so it doesn't soak up water like the cottony sponge that it is


That made me chuckle, I didn't know a butane lighter could kill you by exploding


Another man made "fatwood" ... needs a bit more work to light with a spark than actual fatwood ... but its $10 for 450 pieces of "waterproof tinder" each burning for 15 seconds .. total 6750 seconds, or 112.5 minutes, or 1.875 hours burn time

compare to dollar store tea light, 16 tealights for $1, 9 grams each, 3-4 hours burn time, tape a cotton ball on top of the tea light and you can light it with a spark

compare to dollar store wax paper, 65-square-foot for $1, about same weight/BTU as 16 tealights, from which tear/roll into 780 individual one inch tubes , torn edges ought to take a spark and ought to burn more than 15 seconds easy ... more BTU than one dollar 4oz vaseline, can carry loose in your pocket, water proof ...
wax paper is universal like a crayon