Bitcoin theft and the future of cryptocurrencies
If your bitcoin wallet is compromised, all your bitcoins are gone forever. With a credit card, you have some chance of only minor damage. If your computer is owned, your wallet is at risk. This appears major problem for the widespread adoption of bitcoin IMHO. Fixing it appears to contradict decentralization, which opens another can of "worms". Potential approach is to use "trusted wallet proxy", but this may not work in practice. Are these concerns taken seriously? Any technical attempts at mitigating cryptocurrency theft?
On the one hand Satochi pitched Bitcoin as a cash-like system. What can happen with cash under careless handling and storage? OTOH, Bitcoin's crypto nature lends itself to novel solutions such as multisig pools that can be used to prevent this type of fraud and theft. See Stash Pool explanation at Stashcrypto.com. On Dec 13, 2017 2:17 AM, "Georgi Guninski" <guninski@guninski.com> wrote:
If your bitcoin wallet is compromised, all your bitcoins are gone forever. With a credit card, you have some chance of only minor damage. If your computer is owned, your wallet is at risk.
This appears major problem for the widespread adoption of bitcoin IMHO.
Fixing it appears to contradict decentralization, which opens another can of "worms".
Potential approach is to use "trusted wallet proxy", but this may not work in practice.
Are these concerns taken seriously?
Any technical attempts at mitigating cryptocurrency theft?
On Wed, Dec 13, 2017 at 10:43:10AM -0800, Steven Schear wrote:
On the one hand Satochi pitched Bitcoin as a cash-like system. What can happen with cash under careless handling and storage? OTOH, Bitcoin's
I strongly suspect Satoshi doesn't keep their large wallets on internet connected machines and will never carry so much cash on the street.
crypto nature lends itself to novel solutions such as multisig pools that can be used to prevent this type of fraud and theft. See Stash Pool explanation at Stashcrypto.com.
Thanks, will take a look. On the cryptography list was suggested that hardware wallet gives some protection.
On Thu, 14 Dec 2017 16:27:14 +0200 Georgi Guninski <guninski@guninski.com> wrote:
On Wed, Dec 13, 2017 at 10:43:10AM -0800, Steven Schear wrote:
On the one hand Satochi pitched Bitcoin as a cash-like system. What can happen with cash under careless handling and storage? OTOH, Bitcoin's
I strongly suspect Satoshi doesn't keep their large wallets on internet connected machines
yeah, you know, paper wallets/cold storage isn't exactly news....
and will never carry so much cash on the street.
crypto nature lends itself to novel solutions such as multisig pools that can be used to prevent this type of fraud and theft. See Stash Pool explanation at Stashcrypto.com.
Thanks, will take a look. On the cryptography list was suggested that hardware wallet gives some protection.
Yet most Bitcoin users and definitely the rest of people don't how to use cold storage or even what it means. There is work that needs to be done in order to bring it to the masses. -------- Original Message -------- On Dec 14, 2017, 17:36, juan wrote:
On Thu, 14 Dec 2017 16:27:14 +0200 Georgi Guninski wrote:
On Wed, Dec 13, 2017 at 10:43:10AM -0800, Steven Schear wrote:
On the one hand Satochi pitched Bitcoin as a cash-like system. What can happen with cash under careless handling and storage? OTOH, Bitcoin's
I strongly suspect Satoshi doesn't keep their large wallets on internet connected machines
yeah, you know, paper wallets/cold storage isn't exactly news....
and will never carry so much cash on the street.
crypto nature lends itself to novel solutions such as multisig pools that can be used to prevent this type of fraud and theft. See Stash Pool explanation at Stashcrypto.com.
Thanks, will take a look. On the cryptography list was suggested that hardware wallet gives some protection.
@guninski.com>
On Fri, 15 Dec 2017 14:49:57 -0500 Michalis Kargakis <kargakis@protonmail.ch> wrote:
Yet most Bitcoin users and definitely the rest of people don't how to use cold storage or even what it means.
There is work that needs to be done in order to bring it to the masses.
so the masses need to learn the basics of cryptography at the user level, and the basics of information security. luckily we have governments and their free public schools
-------- Original Message -------- On Dec 14, 2017, 17:36, juan wrote:
On Thu, 14 Dec 2017 16:27:14 +0200 Georgi Guninski wrote:
On Wed, Dec 13, 2017 at 10:43:10AM -0800, Steven Schear wrote:
On the one hand Satochi pitched Bitcoin as a cash-like system. What can happen with cash under careless handling and storage? OTOH, Bitcoin's
I strongly suspect Satoshi doesn't keep their large wallets on internet connected machines
yeah, you know, paper wallets/cold storage isn't exactly news....
and will never carry so much cash on the street.
crypto nature lends itself to novel solutions such as multisig pools that can be used to prevent this type of fraud and theft. See Stash Pool explanation at Stashcrypto.com.
Thanks, will take a look. On the cryptography list was suggested that hardware wallet gives some protection.
@guninski.com>
It's unlike that most Internet users know how BGP works (said elsewhere). -------- Original Message -------- On Dec 15, 2017, 21:54, juan wrote:
On Fri, 15 Dec 2017 14:49:57 -0500 Michalis Kargakis wrote: > Yet most Bitcoin users and definitely the rest of people don't how to > use cold storage or even what it means. > > There is work that needs to be done in order to bring it to the > masses. so the masses need to learn the basics of cryptography at the user level, and the basics of information security. luckily we have governments and their free public schools > > -------- Original Message -------- > On Dec 14, 2017, 17:36, juan wrote: > > > On Thu, 14 Dec 2017 16:27:14 +0200 > > Georgi Guninski wrote: > > > >> On Wed, Dec 13, 2017 at 10:43:10AM -0800, Steven Schear wrote: > >> > On the one hand Satochi pitched Bitcoin as a cash-like system. > >> > What can happen with cash under careless handling and storage? > >> > OTOH, Bitcoin's > >> > >> I strongly suspect Satoshi doesn't keep their large wallets on > >> internet connected machines > > > > yeah, you know, paper wallets/cold storage isn't exactly > > news.... > > > >> and will never carry so much cash on the > >> street. > >> > >> > crypto nature lends itself to novel solutions such as multisig > >> > pools that can be used to prevent this type of fraud and theft. > >> > See Stash Pool explanation at Stashcrypto.com. > >> > > >> Thanks, will take a look. On the cryptography list was suggested > >> that hardware wallet gives some protection. > >> > > > > @guninski.com> @protonmail.ch>
Cold storage - https://www.bitcoin.com/guides/setting-up-your-own-cold-storage-bitcoin-wall... -------- Original Message -------- On Dec 13, 2017, 2:16 AM, Georgi Guninski wrote:
If your bitcoin wallet is compromised, all your bitcoins are gone forever. With a credit card, you have some chance of only minor damage. If your computer is owned, your wallet is at risk. This appears major problem for the widespread adoption of bitcoin IMHO. Fixing it appears to contradict decentralization, which opens another can of "worms". Potential approach is to use "trusted wallet proxy", but this may not work in practice. Are these concerns taken seriously? Any technical attempts at mitigating cryptocurrency theft?
participants (5)
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Georgi Guninski -
juan -
Michalis Kargakis -
rooty -
Steven Schear