This is one of the most interesting stories I’ve ever read in Bitcoin and we’re just a week out from Coldcard’s catastrophic failure.
I highly recommend you take the time to read this, you will not regret it, seriously.
Credit: @hodlonaut
https://t.co/LNUc8lAOd7
To my fellow Jews-
How much more will it take for you to stop voting for Democrats? I’m serious. Do you need to see blood in the streets? How bad does it need to get?
We desperately need to leave the crypto bubble for five minutes.
Dice? Entropy? Air-gapped devices? Seed phrases stamped into steel?
Nobody knows what the hell we are talking about.
If securing your life savings requires the average person to become an amateur cryptographer and cybersecurity expert, the product is not ready for the average person.
And screaming “not your keys, not your coins” doesn’t solve that.
Self-custody is incredibly powerful. It is also completely non-viable for 99% of people in its current form.
Until self-custody becomes so easy that your parents can use it safely without understanding what entropy means, we have not solved the problem.
I am getting a lot of questions about a Bitcoin multi-sig setup so I thought I'd create this quick guide.
This is now the gold standard for serious self custody.
Any single device can fail or have a flaw. Multi-sig removes the single point of failure.
1) The equipment:
Mix your hardware brands. A bug in one vendor's firmware cannot touch a setup where the other two keys come from different manufacturers.
-Trezor Safe 5 (wallet 1)
-Blockstream Jade (wallet 2)
-BitBox02 (wallet 3)
-Sparrow Wallet (desktop-only) as your coordinator
2) Generate your keys:
Set up all three devices completely independently. Secure the 12 or 24 word seed phrase for each. You now have three unrelated wallets.
3) Export the public keys:
Open Sparrow. Plug in each device and export its XPUB. XPUBs only read balances, they cannot move funds. This step is safe.
Make sure all three devices use the same script type, for example Native SegWit. Mixing address types across devices will cause errors in Sparrow.
4) Build the vault:
New Wallet, Multi-Signature 2-of-3. Import all three XPUBs. Sparrow merges them into a single vault.
Save and print the Wallet Configuration File. This is your blueprint and this is where people get caught out.
Two seeds spend your Bitcoin. Three XPUBs find it.
Bitcoin locks multi-sig funds to all three public keys simultaneously. Feed Sparrow only two XPUBs and it generates completely different addresses. Your balance shows zero. The coins are still there, you just cannot see them.
XPUBs cannot move your funds, but anyone holding them can see your entire balance and transaction history. Keep a copy of the blueprint wherever a seed lives, and store it with the same care.
5) Test it:
Send $5 to your new multi-sig address, then spend it back out. Sparrow will ask you to sign with any two devices.
If the spend works, your setup works. Do not skip this.
6) Separate your backups:
Never store them in the same place.
For example...
-Home: Seed 1 + blueprint
-Close relative's home: Seed 2 + blueprint
-Third location: Seed 3 + blueprint
You can also keep an extra copy of the blueprint on its own somewhere separate. It cannot spend anything by itself.
The absolute rule is that no single location should ever hold two seeds. Two seeds plus the blueprint is a spendable wallet and the blueprint is not secret enough to rely on as protection.
Why 2-of-3 works:
House burns down? Retrieve the other two seeds and recover everything.
One device compromised by a firmware flaw? Your Bitcoin is safe. They need two.
I have not covered passphrases to keep this simple.
I hope this helps. Happy to assist if anyone needs any support.
@ODELLXYZ Self custody has taken a huge leap backwards. Exchanges are overloaded and need to step up their own security immediately. All hands on deck right now.
Bernie Sanders got an $800k book advance. He used that money to buy a third home.
The Vermont Food Bank says 2 in 5 Vermonters suffer food insecurity. Sanders’ book advance could have provided 3,000,000 meals.
Bernie Sanders’ greed is *literally* starving children in Vermont.
Set an example @SenSanders - sell your houses and your stock portfolio, give it all to charity, and just live off of your Senate salary. If your claiming that Sergei Brin is killing people by holding onto his money the same holds true for you - its just a matter of numbers. Put up or shut up.