Bitcoin Magazine: How To Protect Your Bitcoin With Coldcard And Integrated Seed XOR

Bitcoin Magazine: How To Protect Your Bitcoin With Coldcard And Integrated Seed XOR

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  1. GREAT write-up. Not only does the author explain why each step is important from a security perspective, he/she/they lists the tradeoffs–e.g. the harder it is for an adversary to break your security, the harder it may be for your loved ones to access your Bitcoin if you die. Plus, the guide includes steps (and worksheets!) you can follow to audit what the ColdCard is doing behind the scenes.

    Thank you, OP, for sharing this.

    I might have to upgrade to Mk3 devices so I can take advantage of that slick XOR seed splitting function!

  2. One thing I might add is this thought: If you generate a seed on your Coldcard and then put it into Sparrow Wallet on an offline computer, you are significantly reducing the security of that seed. Similarly, if you saved that wallet and then deleted it, the information would still be on your hard drive / SSD. Deleting a file doesn’t actually destroy the information. Only when that location on the drive is overwritten (which you as the user have no control over) would the old information be erased.

    A more likely scenario is this: You have a keylogger (a type of sypware) installed on your computer, but don’t know it. You sever the network connection, turn off WiFi, etc., and enter your seed phrase. The keylogger remembers what you typed (stores it on your hard drive) and just waits. Once you reconnect the computer to the internet, the keylogger sends out all you’ve typed, including your seed.

What do you think?

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