Blind signatures for Bitcoin to secure BTC storage(blog.oleganza.com)
blog.oleganza.com
Blind signatures for Bitcoin to secure BTC storage
http://blog.oleganza.com/post/77474860538/blind-signatures-for-bitcoin-the-ultimate-solution-to
27 comments
With M-of-N multisignature you don't need to fully trust any single party.
With Electrum you have to have a fully trusted machine to sign transactions. Using M-of-N multisig transaction is safe even if NSA secretly owns your machine.
With Electrum you have to have a fully trusted machine to sign transactions. Using M-of-N multisig transaction is safe even if NSA secretly owns your machine.
No backups needed
Doesn't Electrum do this by backing up your wallet to "the cloud"? Even if it is 100% properly encrypted, I can't say that I feel good about this. Feels like one bug away from compromising many people's wallets.
Doesn't Electrum do this by backing up your wallet to "the cloud"? Even if it is 100% properly encrypted, I can't say that I feel good about this. Feels like one bug away from compromising many people's wallets.
No, it does not.
Are you sure? Why does the restore process require a server address?
https://electrum.org/seed.html
The screenshot uses ecdsa.org, which seems to be just an Electrum server of some kind.
https://electrum.org/seed.html
The screenshot uses ecdsa.org, which seems to be just an Electrum server of some kind.
Pretty sure that's because Electrum doesn't download the entire blockchain but relies on servers for most of it and only downloads a certain amount of recent history and trusts servers for older history. And it doesn't have to be that server, which is why app lets you change the URL, any server serving blockchain history you trust is fine. It's using your passphrase as the one and only seed for key generation, so it can reliably generate same private key every time. Someone correct me if I'm mistaken on any details.
Electrum is a thin client that has to ask a full node for the chain so that it can pluck out the relevant transactions to rebuild your local wallet state.
https://en.bitcoin.it/wiki/Thin_Client_Security
It knows which transactions are relevant because of the keys that can be deterministically generated from your seed, but the seed itself isn't sent to a server.
https://en.bitcoin.it/wiki/Thin_Client_Security
It knows which transactions are relevant because of the keys that can be deterministically generated from your seed, but the seed itself isn't sent to a server.
The idea is spreading the security to multiple systems. Electrum doesn't help you if you enter the passphrase on a compromised computer.
The paper is very light on details. I am not even sure what security property is being achieved here. Is it some kind of group blind signatures protocol? Some kind of threshold system? Some kind of special-purpose multiparty computation protocol?
The paper only discusses blind signature algorithm: how to prepare a "blinded" public key and then produce a matching signature, also blinded from the signer. The primary motivation is to use such blinded public keys in the standard Bitcoin multisignature transactions. That is, transactions, using N public keys and requiring M signatures (M <= N). "Multiparty computation" with "threshold system" here are provided by Bitcoin automatically, paper does not discuss that. But it shows how such multiparty signing can be done absolutely privately, when neither party (except for initiator and holder of funds) can learn which transaction they allowed to spend.
"The paper only discusses blind signature algorithm"
No, it seems to discuss something else. It starts out talking about blind signatures, then veers off with claims like this:
"The novelty of the scheme is that unlike the original Chaum blind signature scheme, this one does not allow anyone to prove that the signing party signed a particular message"
I am not actually sure what you are trying to say there. Does it mean that I can only narrow down the possible signers to some group? Does it mean that the signature key is ephemeral, yet somehow meaningful?
To put it another way, what differentiates your proposal from this:
https://eprint.iacr.org/2011/402.pdf
""Multiparty computation" with "threshold system" here are provided by Bitcoin automatically, "
What? Where? Citation needed.
No, it seems to discuss something else. It starts out talking about blind signatures, then veers off with claims like this:
"The novelty of the scheme is that unlike the original Chaum blind signature scheme, this one does not allow anyone to prove that the signing party signed a particular message"
I am not actually sure what you are trying to say there. Does it mean that I can only narrow down the possible signers to some group? Does it mean that the signature key is ephemeral, yet somehow meaningful?
To put it another way, what differentiates your proposal from this:
https://eprint.iacr.org/2011/402.pdf
""Multiparty computation" with "threshold system" here are provided by Bitcoin automatically, "
What? Where? Citation needed.
Yeah confused. If you can't tell who signed a particular message, then what are signatures for? I thought they were for authentication, which means the message was not modified, and, I know who sent it.
A "blind signature" sounds like an odd concept.
What can be done I just thought up is adding another transport layer to bitcoin. And breaking up and distributing the wallet's contents "sum" among strangers into something like a checksum. Then on transactions bringing the chunks of checksum partially back together.
How it's broken down can vary. you have to remember though, if you are buying something for $10 all that needs to be verified is that you have $10 or more for the next step.
What can be done I just thought up is adding another transport layer to bitcoin. And breaking up and distributing the wallet's contents "sum" among strangers into something like a checksum. Then on transactions bringing the chunks of checksum partially back together.
How it's broken down can vary. you have to remember though, if you are buying something for $10 all that needs to be verified is that you have $10 or more for the next step.
The scheme allows never holding all secret pieces in one place to make a transaction. Otherwise, if your machine is compromised, someone can send your money elsewhere. I don't quite understand your proposal, but it requires having all chunks in one place to make a transaction.
Something that also just came to me, instead of having one large sum on money in one wallet. Who says it can't be distributed and broken down in max wallet sizes of $50 or so. $50 is a common number no one should really care too much about. So there goes your concern about being able to see wallet size. If something costs more than $50 group multiple wallets into the transaction.
And how do you plan to realistically manage 200 such wallet's? Realistically you would have a computer somewhere know there key's which introduces the same inherent risk as having that computer manage a single wallet.
If you really want secure storage you print out your private key's and store them in one or more vaults. If your even more paranoid you can encrypt the information such that you need more than one vault to access the data, but have some redundancy so if one storage location floods you don't lose any bit-coins. Which is where these N of M encryption schemes become useful.
If you really want secure storage you print out your private key's and store them in one or more vaults. If your even more paranoid you can encrypt the information such that you need more than one vault to access the data, but have some redundancy so if one storage location floods you don't lose any bit-coins. Which is where these N of M encryption schemes become useful.
The idea is less about losing coin, and more about concealing wallet size from people that don't need to know about how much money is in a bitcoin wallet.
My idea is more along the lines of instead of pulling out a wad of money you're only pulling out $50 at a time.
Me personally, I don't mind the wallet amount being public because for things lie fundraising it keeps people honest.
My idea is more along the lines of instead of pulling out a wad of money you're only pulling out $50 at a time.
Me personally, I don't mind the wallet amount being public because for things lie fundraising it keeps people honest.
In the bitcoin world, this technique is known as "merge avoidance" - read about it here: https://medium.com/bitcoin-banter/7f95a386692f
Implementation would have to be along the lines of a proxy, decentralizing ownership is a nice way to lose some friends.
The multisig vault makes sense for relatively large stash which would take a lot of $50 transactions to brake down into. Also, as you ask your friends to sign off $50 redeeming txs, they'd see how much did you have previously. Not ideal.
In my paper I propose using sequential generation of parameters so you can break down your funds into multiple transactions, but it's only for convenience, your privacy vis-a-vis your friends is still absolute.
In my paper I propose using sequential generation of parameters so you can break down your funds into multiple transactions, but it's only for convenience, your privacy vis-a-vis your friends is still absolute.
If I recall correctly Bitcoin already provides this out of the box: a wallet is already a collection of public/private keypairs (and not a single public address). You could at any point divide your money over an arbitrary amount of addresses that you own(maybe at a small transaction cost). This does not mean people could still try to understand what's really happening by analysing the full graph.
Why would you use this instead of a warp wallet?
https://keybase.io/warp/
https://keybase.io/warp/
Good question. I answered it in the paper (just 8 pages) which you obviously haven't read before asking.
Keybase is a single point of failure. Or your machine that will do KDF. M-of-N multisig transactions are way safer because to sign a specific transaction you never need to have all secret material at once on a single machine. If my PC is compromised, I can still independently verify specific transaction I want to sign and send it out to my friends to sign. All their private keys are stored on independent machines which normally aren't compromised altogether by the same attacker.
On specific problem with brainwallets - low entropy. One specific problem with web apps: no code signing. Even if your SSL pubkey is pinned (which is not supported by any browser yet), the code you receive from the server is never remembered and pinned (like with installed apps). If their server is silently compromised tomorrow, someone may humbly hijack keys of 1% of the users and go undetected for quite some time.
Keybase is a single point of failure. Or your machine that will do KDF. M-of-N multisig transactions are way safer because to sign a specific transaction you never need to have all secret material at once on a single machine. If my PC is compromised, I can still independently verify specific transaction I want to sign and send it out to my friends to sign. All their private keys are stored on independent machines which normally aren't compromised altogether by the same attacker.
On specific problem with brainwallets - low entropy. One specific problem with web apps: no code signing. Even if your SSL pubkey is pinned (which is not supported by any browser yet), the code you receive from the server is never remembered and pinned (like with installed apps). If their server is silently compromised tomorrow, someone may humbly hijack keys of 1% of the users and go undetected for quite some time.
> which you obviously haven't read before asking
Sorry, but the question was quite disrespectful. We are presenting a high-security solution to an important problem and the ignorant observer proposes to use something extremely unsafe and insecure as an alternative without even trying to understand the problem.
Here's the motivation, right on the first page:
"This can be viewed as an ultimate solution for secure storage of bitcoins as no individual computer system can be fully trusted (e.g. even RNG may leak information about private keys through ECDSA signatures [5]). By spreading the trust between several independently operating computers the risk is significantly reduced. The attacker not only has to compromise several computers instead of just one, but beforehand they must find out which computers are involved (which is made much harder when blind signatures are being exchanged). Therefore the scheme enables safer Bitcoin storage on conventional personal computers and smartphones without need for specialized hardware or compromising privacy."
To my excuse, I only allowed myself to be a bit arrogant while providing a respectful answer anyway. This both answers the question and signals that something can be improved in the discussion.
Here's the motivation, right on the first page:
"This can be viewed as an ultimate solution for secure storage of bitcoins as no individual computer system can be fully trusted (e.g. even RNG may leak information about private keys through ECDSA signatures [5]). By spreading the trust between several independently operating computers the risk is significantly reduced. The attacker not only has to compromise several computers instead of just one, but beforehand they must find out which computers are involved (which is made much harder when blind signatures are being exchanged). Therefore the scheme enables safer Bitcoin storage on conventional personal computers and smartphones without need for specialized hardware or compromising privacy."
To my excuse, I only allowed myself to be a bit arrogant while providing a respectful answer anyway. This both answers the question and signals that something can be improved in the discussion.
Good question. I've been meaning to try that one. Anyone know how secure it is?
Is there a way to get Btc out if that site goes down?
Is there a way to get Btc out if that site goes down?
From the page: "This page is self-contained for portability. Save it on your computer - all the JS, CSS, and images are embedded. It's also hosted on github." Link: https://github.com/keybase/warpwallet
I personally love how Electrum wallet does it:
You may generate and regenerate wallet using only key word phrase. Keep it safe in memory or in bank deposit box.
No backups needed. You may always regenerate wallet by keyphrase.