Good idea to implement an BIP 32 / HD wallet.
I know for sure the Satoshi/ Armory/ MultiBit clients plan an implementation so to talk to your device there would just be the serial IO to integrate.
Have you thought about raising money for this project, Kickstarter style?
I would pay for such a device, if it was professionally made.
I approached the makers of
CryptoStick about the possible cost of such a device, and their rough answer was "100,000 euro + 50 euro per device". That's a bit stiff...
I'm not a hardware guy ... how much do you think it will cost to mass manufacture these, with these requirements:
1. Key is only stored on the device, only ECDES signatures are sent out.
2. No internal power source needed, draw power via USB
3. Support for m-of-n signatures are a must.
My dream use-case: you carry this around (1st signature), input a password into a computer to access your blockchain.info wallet (2nd signature), and can thus can move your bitcoins. To generate a signature, you get the bitcoin address and BTC amount from the USB interface, display them on the device to avoid any chance of trojan faking these, and click a button on the device (like Yubikey).
If you lose the device, you still have a 3rd signature lying someplace safe (bank vault). Compromising any single one of the 3 secrets doesn't cause you any harm.
4. Everything (code + hardware plans) should be open source.
5. This should be a real, production-quality project, and not just a POC.
6. The product should have long shelf life.
someone42, what are your plans with this? If you got funding, would you dedicate the necessary time & resources to make this production-grade? Do you have the necessary experience in making production-grade devices, or would you need to team up with someone to take it to the next level?
I want to help make this device a reality. I can donate funds and help organize a fund raiser, and perhaps help with other stuff (e.g. building a website, marketing).
Please pm if you want to discuss further.