Is It Better To Have One Private Key or Multiple?

l.j2300

member

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Thanks for the responses, I appreciate all of the advice.

Quote from: etotheipi on November 18, 2013, 05:42:47 PM

However, it may not be a bad idea to split your coins into a couple different addresses in your wallet, again for privacy reasons. But it's not critical. Keeping them all in one address is fine for security reasons.

I thought if one were to say have a collision of a private key, they would be able to spend the coins regardless of how many different addresses that the btc are in the wallet? Or did I misunderstand... I thought that if one has generated the same private key, they can use any of the btc in the addresses which the wallet creates regardless if you split them?

etotheipi

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Core Armory Developer

I don't agree with goatpig's explanation here. People like to dwell on the possibility of collisions, but it's irrelevant. A collision occurs at a rate similar to winning the Megamillions jackpot six consecutive times. It doesn't happen. No decisions should be made based on that possibility.

However, it is true that there are serious privacy implications to reusing addresses. Luckily Armory wallets were designed to generate an infinite number of addresses from the paper backup seed, so you can use a new address with every transaction, without any risk of your backup going bad. Just use a new address for every incoming transaction, and Armory will use a new address every time it needs to make a "change" address.

However, it may not be a bad idea to split your coins into a couple different addresses in your wallet, again for privacy reasons. But it's not critical. Keeping them all in one address is fine for security reasons.

goatpig

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Armory Developer

Quote from: l.j2300 on November 18, 2013, 02:47:43 PM

Thanks for the quick response. Let's say if there was to a private key collision, doesn't the multiple wallets with split up btc allow for a better chance of getting smaller amounts stolen? Or is the chance that small that this happens that it hardly wont effect it?

The collision would only compromise a single private key. Wallets have several private keys. If you're talking about Armory's wallet seed collision, then it would indeed corrupt the entire wallet. In this case multiple multiple wallets would protect even more.

Keep in mind that the chance for collision is infinitesimal

l.j2300

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Activity: 83

Merit: 10

Thanks for the quick response. Let's say if there was to a private key collision, doesn't the multiple wallets with split up btc allow for a better chance of getting smaller amounts stolen? Or is the chance that small that this happens that it hardly wont effect it?

goatpig

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Armory Developer

By design you should save your coins on several private keys. In the abysmal chance of private key collision, you wouldn't be losing everything.

l.j2300

member

Activity: 83

Merit: 10

Hey all,

I was wondering what is everyone's opinion/recommendation regarding the number of private keys someone should have if they are looking for long term cold storage. Would it better to store btc in one address (or multiple since it doesn't matter if one has access to your private key/wallet) on one private key or would it be better to split the btc in smaller amounts into multiple private keys/wallets?

Thanks

Topic: Is It Better To Have One Private Key or Multiple? (Read 726 times)