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Topic: Question about Physical Wallets (Read 422 times)

sr. member
Activity: 447
Merit: 250
April 29, 2013, 01:21:44 AM
#5
Your options will depend on your technical skill, but really it is safer and easier to just think of any paper wallet that you "redeem" as being compromised and simply create a new paper wallet to send the remaining balance to.

As soon as you send any bitcoins that were received at an address, that address immediately becomes a bit less secure.  In general, especially for short term use, this slight reduction isn't significant, but given the ease of creating a new address, why not make it as secure as you can.

Technical note for those who would like to know why an address is a bit less secure after spending bitcoins received at that address:
Bitcoins stored at an address that has never sent any bitcoins anywhere have three levels of cryptography between the private key and the publicly available bitcoin address (ECDSA, SHA-256, and RIPEMD-160).  Once you spend bitcoins from an address the public key of the address becomes public knowledge.  After that the only layer of security is the ECDSA algorithm between the private key and the public key.  This means that if a weakness is ever discovered in the ECDSA algorithm, bitcoins that are stored at addresses that have previously sent bitcoins will become vulnerable to the weakness.  Meanwhile, the bitcoins that are stored at addresses that have only ever received bitcoins are not vulnerable unless weaknesses are simultaneously discovered in all three algorithms.

Thanks for the info. 
full member
Activity: 172
Merit: 100
April 29, 2013, 01:10:42 AM
#4
Your options will depend on your technical skill, but really it is safer and easier to just think of any paper wallet that you "redeem" as being compromised and simply create a new paper wallet to send the remaining balance to.

As soon as you send any bitcoins that were received at an address, that address immediately becomes a bit less secure.  In general, especially for short term use, this slight reduction isn't significant, but given the ease of creating a new address, why not make it as secure as you can.

Technical note for those who would like to know why an address is a bit less secure after spending bitcoins received at that address:
Bitcoins stored at an address that has never sent any bitcoins anywhere have three levels of cryptography between the private key and the publicly available bitcoin address (ECDSA, SHA-256, and RIPEMD-160).  Once you spend bitcoins from an address the public key of the address becomes public knowledge.  After that the only layer of security is the ECDSA algorithm between the private key and the public key.  This means that if a weakness is ever discovered in the ECDSA algorithm, bitcoins that are stored at addresses that have previously sent bitcoins will become vulnerable to the weakness.  Meanwhile, the bitcoins that are stored at addresses that have only ever received bitcoins are not vulnerable unless weaknesses are simultaneously discovered in all three algorithms.

Thank you for the great explanation.
legendary
Activity: 3388
Merit: 4615
April 29, 2013, 12:26:15 AM
#3
Your options will depend on your technical skill, but really it is safer and easier to just think of any paper wallet that you "redeem" as being compromised and simply create a new paper wallet to send the remaining balance to.

As soon as you send any bitcoins that were received at an address, that address immediately becomes a bit less secure.  In general, especially for short term use, this slight reduction isn't significant, but given the ease of creating a new address, why not make it as secure as you can.

Technical note for those who would like to know why an address is a bit less secure after spending bitcoins received at that address:
Bitcoins stored at an address that has never sent any bitcoins anywhere have three levels of cryptography between the private key and the publicly available bitcoin address (ECDSA, SHA-256, and RIPEMD-160).  Once you spend bitcoins from an address the public key of the address becomes public knowledge.  After that the only layer of security is the ECDSA algorithm between the private key and the public key.  This means that if a weakness is ever discovered in the ECDSA algorithm, bitcoins that are stored at addresses that have previously sent bitcoins will become vulnerable to the weakness.  Meanwhile, the bitcoins that are stored at addresses that have only ever received bitcoins are not vulnerable unless weaknesses are simultaneously discovered in all three algorithms.
legendary
Activity: 4298
Merit: 3209
April 29, 2013, 12:16:43 AM
#2
First, you can only spend the bitcoins by importing the key into a wallet that is connected to the network.

Keep in mind that when you spend bitcoins from an address you must send the entire amount somewhere. The client sends the excess ("change") to another address. You must get a client to send the change back to the original physical wallet address.

After you have sent the portion, with the change going back to the original address, you need to delete the physical wallet's key from the connected wallet so that the wallet does spend any more from that address. Anytime you delete a private key, you are risking the loss of your coins, so be careful.

Some clients may make this process easier. Armory is probably the best candidate.

On the other hand, how hard is it to make a new physical wallet? The simplest and safest thing to do is to import the physical wallet's key, spend the money, and then make a new physical wallet with what left over. I highly recommend doing this instead.
legendary
Activity: 896
Merit: 1000
April 28, 2013, 11:47:22 PM
#1
So this is a prety n00b question, and I'm pretty sure I already know the answer, but I figured why not ask anyway? Regarding physical wallets, is there ANY way to redeem only a portion of your coins? Like, say my paper wallet had 5 BTC in it. Is there any way I could redeem only 3 and keep 2 on there, or would I need to just generate a new keypair to do that?
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