just to ask regarding the use of a desktop wallet - i backup my wallet.dat whenever necessary, like after i am done with transactions for the day, etc. i am not sure if backing up the wallet.dat is enough. so do we still need to know the private key of the desktop wallet?
The wallet.dat file is enough, you don't need the private key.
You can do a fresh install of the wallet on another computer, then close the program and replace the 'new' wallet.dat with your backup copy.
That is correct.
The private key is what you would use to create a paper wallet, and is a much more cumbersome, complicated and dangerous process that is only recommeded for expert users (since if done incorrectly you have a very good chance of losing your coins), and using 3rd party software to supposedly make that easier is even more dangerous.
Just to clarify some points here. A private key is used as an almost universal backup system. It can be used to import any funds tied to that address into every Digibyte wallet available be it Digibyte Core, Digibit, DigiElectrum, Digiandroid, Digibyte iOS or paper wallet. The danger comes from you loosing the private key or having it stolen as an attacker that has access to your private key has access to all your funds. In many ways a private key can be more secure than simply backing up your wallet.dat file. I've known people that have had their private key imprinted on bits of wood which they then store in a safe. Remember that all data can be stolen remotely (that is via the internet) not to mention that hard drives regularly fail, whereas someone would actually need physical access to whatever storage medium you have chosen to store your private key on in order to gain access to those funds.
Although yes for your average user backing up your wallet.dat file is more than enough to ensure you will always be able to access those funds in the future. I would recommend backing it up in a couple of places!
Cheers.
Nice additional information - especially the cross platform stuff.
I still can't stress enough how dangerous it can be though, and that private key (paper wallet) manipulation is for expert users. Think of what happens, for example, when the uninitiated, thinking the import process is taking too long, or that it isn't working at all, tries to abort! Goodbye private key coins. (And nobody think that the third party "cloud" software offering to do the job for you for free is free from their simply pirating your private key either.)
The average user needs to learn to do the process in a secure way on his or her own, and then if they want to send money to another wallet they have, they should do it the normal way. The everyday user should be instructed on the safest and easiest way to do things (and even then, things will go wrong), similar to what I was doing in the second half of the post you quoted but left out (
https://bitcointalksearch.org/topic/m.10635714 ).
And "backing it up in a couple of places",
at very least!!!! As you mention, storage media can and will fail!!! And, if you're backing up private keys too, that includes your private key storage media as well!!!! And this even means
different physical locations!!! Imagine your home catches fire . . .
Serious stuff that certainly needs standardization. Things are complicated enough as it is with cryptographic digital currencies, let alone we unduely complicate them more.
Best Practice ideas and instructions are not easy to come by. Thanks for contributing to that end.
I'll put this together into a nice simple and easy HOWTO on Asistec TI as soon as I possibly can - as you know, I'm very busy at the moment.
