mewtwo on Nostr: Nice, that’s really helpful. Really interested to look more into this, it’s super ...
Nice, that’s really helpful. Really interested to look more into this, it’s super different from anything I’m used to.
Regarding private key management:
Obviously the inherent risk in self-custody via a single private key is losing it. You need to balance:
Safety from theft - easily done by splitting the key up, and, I can’t emphasize this enough, AIRGAPPING it
Safety from disaster - a metal backup is the best option for this
*Reasonable Accessibility - we’re talking access within a day for your HODL wallet.
Ease of recovery - this means making sure YOU don’t lose access to your wallet by making recovery too difficult.
There are more factors to consider depending on your situation, but those are the main ones.
2-of-3 Multisig is the best overall option, especially collaborative custody multisig (if you trust the third party).
Using hardware wallets and metal backups at separate locations is an airgapped solution that’s safe from theft and disaster. Depending on the locations you choose, accessing your funds within a day should be possible as well.
Here’s the important part. Multisig sounds complicated, and it does take a bit of learning (although it’s actually super easy if you use Unchained), but it’s one of the simplest solutions for ease of recovery.
Because you need 2 of 3, there’s no need to overly complicate the security of an individual wallet. You don’t even need to use a password for your hardware wallets. If something happens to a wallet, you’re fine. You can give it to a wrench-attacker, you can lose it, and you’re fine.
Recovery is as simple as retrieving your other two wallets or backups. If it’s collaborative custody, it’s even simpler. What’s nice is, you don’t need to memorize anything, you don’t need passwords for wallets (that, if forgotten, render your funds lost), you don’t have to lose your mind over making sure you know where each piece is at all times, and it can be completely airgapped, which is important because [inserts hundreds of zero-days]
*this isn’t recommended for funds you need to access regularly. This is your diamond hands wallet, and this will still be important on a bitcoin standard, because saving / long term self-custody is a huge part of the system. Use a mobile wallet or hardware wallet for regular funds access, like you would a real wallet with physical cash.
Regarding private key management:
Obviously the inherent risk in self-custody via a single private key is losing it. You need to balance:
Safety from theft - easily done by splitting the key up, and, I can’t emphasize this enough, AIRGAPPING it
Safety from disaster - a metal backup is the best option for this
*Reasonable Accessibility - we’re talking access within a day for your HODL wallet.
Ease of recovery - this means making sure YOU don’t lose access to your wallet by making recovery too difficult.
There are more factors to consider depending on your situation, but those are the main ones.
2-of-3 Multisig is the best overall option, especially collaborative custody multisig (if you trust the third party).
Using hardware wallets and metal backups at separate locations is an airgapped solution that’s safe from theft and disaster. Depending on the locations you choose, accessing your funds within a day should be possible as well.
Here’s the important part. Multisig sounds complicated, and it does take a bit of learning (although it’s actually super easy if you use Unchained), but it’s one of the simplest solutions for ease of recovery.
Because you need 2 of 3, there’s no need to overly complicate the security of an individual wallet. You don’t even need to use a password for your hardware wallets. If something happens to a wallet, you’re fine. You can give it to a wrench-attacker, you can lose it, and you’re fine.
Recovery is as simple as retrieving your other two wallets or backups. If it’s collaborative custody, it’s even simpler. What’s nice is, you don’t need to memorize anything, you don’t need passwords for wallets (that, if forgotten, render your funds lost), you don’t have to lose your mind over making sure you know where each piece is at all times, and it can be completely airgapped, which is important because [inserts hundreds of zero-days]
*this isn’t recommended for funds you need to access regularly. This is your diamond hands wallet, and this will still be important on a bitcoin standard, because saving / long term self-custody is a huge part of the system. Use a mobile wallet or hardware wallet for regular funds access, like you would a real wallet with physical cash.