Should I move my cold storage to multisig? - page 2.

ensurance982

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Quote from: MineForeman.com on April 19, 2015, 06:47:13 PM

A multisig address will protect your from the "$5 wrench" attack. If you use a 2 of 3 multisig address you keep one yourself, give one to you mom and then put a third in a safety deposit box.

That way if you die your mom can get the safety deposit box and access your coins, you can still access your coins without your mom by going to your safety deposit box or you can just send a transaction to you mom for approval (because, yeah, you mom always needs to approve your spending anyway Tongue

).

I always keep telling people that multisig doesn't actually 'increase' the security of their coins or make the key more complex or whatever. But being protected against the $5 wrench attack makes so much sense, actually.... Thanks for that input!

Amph

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i'm still using the conventional 1 sig address and a usb for cold storage, i don't see the need to move them to a multisig address to be honest, as long as they are off-line encrypted wallet they are safe

StevenS

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Quote from: johnyj on April 19, 2015, 08:23:17 PM

and I might forget about one of the encryption password If I don't repeat them every week Cheesy

It makes the most sense to save your backup unencrypted in a safe deposit box. If you die, you'll want your heirs to have access to your bitcoin.

If you're worried about the authorities or others getting access to your safe deposit box without your authorization, then you have bigger problems, and the multi-sig option among your cohorts is probably a better solution.

BitcoinPenny

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BitcoinPenny.com

Quote from: MineForeman.com on April 20, 2015, 03:46:25 PM

Quote from: BitcoinPenny on April 20, 2015, 03:41:49 PM

In other words, only use the multisig technology if you hate your mom.

Feel free to use your wife instead Tongue

.

Right after I use smart contract technology to take out the $1M life insurance policy. Grin

(Please don't tell her I said that.)

Me

MineForeman.com

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Quote from: BitcoinPenny on April 20, 2015, 03:41:49 PM

In other words, only use the multisig technology if you hate your mom.

Feel free to use your wife instead Tongue

.

BitcoinPenny

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Quote from: MineForeman.com on April 19, 2015, 06:47:13 PM

A multisig address will protect your from the "$5 wrench" attack. If you use a 2 of 3 multisig address you keep one yourself, give one to you mom and then put a third in a safety deposit box.

That way if you die your mom can get the safety deposit box and access your coins, you can still access your coins without your mom by going to your safety deposit box or you can just send a transaction to you mom for approval (because, yeah, you mom always needs to approve your spending anyway Tongue

).

Great comic! LOL Grin

But wouldn't they simply get your 1 of 3 multisig address, ask you who has the other multisig addresses, then visit your mom and give her the same "$5 wrench" attack? The multisig address idea endangers your mom, too.

In other words, only use the multisig technology if you hate your mom.

Regards,
Me

BitcoinPenny

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Quote from: crazyearner on April 19, 2015, 02:17:35 PM

I only use paper wallets as cold storage lot safer than using anything else and only take them out when really needed to.

I know it's silly, but it always amazes me that with all the crazy technical algorithmic cryptographic hot/cold wallet innovations, the most secure might be paper. Grin

Me

crazyearner

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Quote from: johnyj on April 19, 2015, 08:23:17 PM

When bitcoin reach $10K per coin, I might consider more secure measures, now offline storage is enough Grin

The real problem for me is that I want to spread the risk by using multiple addresses, then it is a pain to maintain several wallets at different locations, and I might forget about one of the encryption password If I don't repeat them every week Cheesy

10k per bitcoin ill fall of me chair if it ever got to that and 10x the bubble what went pop when gox went and then pop again and again. Will need some serious investments and people hauling and buying up to reach that with some serious demands for btc to ever get to that stage

johnyj

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Beyond Imagination

When bitcoin reach $10K per coin, I might consider more secure measures, now offline storage is enough Grin

The real problem for me is that I want to spread the risk by using multiple addresses, then it is a pain to maintain several wallets at different locations, and I might forget about one of the encryption password If I don't repeat them every week Cheesy

MineForeman.com

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A multisig address will protect your from the "$5 wrench" attack. If you use a 2 of 3 multisig address you keep one yourself, give one to you mom and then put a third in a safety deposit box.

That way if you die your mom can get the safety deposit box and access your coins, you can still access your coins without your mom by going to your safety deposit box or you can just send a transaction to you mom for approval (because, yeah, you mom always needs to approve your spending anyway Tongue

).

crazyearner

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Quote from: EvilPanda on April 19, 2015, 05:03:53 PM

Quote from: Jybrael on April 19, 2015, 04:44:42 PM

Well I am new to the Cryptocurrency world...so I don't fully understand the meaning behind Coldstorage. Have read that word a lot in many different threads...just never got the guts to ask...What exactly is cold storage?

Cold storage is in other words an offline storage, it can be for instance a paper wallet or an encrypted wallet.dat stored on a USB stick. When you have a wallet that you're using daily to process transactions it's your hot wallet.

Quote from: medUSA on April 19, 2015, 03:49:58 PM

I keep my coins on Electrum, which is not a multisig wallet. I understand the advantages of a multisig. Then I would have to keep 3 "things" really safe instead of just 1. I might have to do that someday, when I have a huge amount, not worried about it now.

Same here. Maybe if I had a small fortune in Bitcoin I'd be more inclined to make paper wallets and stuff. When I had more coins I used a dedicated netbook running ubuntu that I turned on only to process the payments. Now I don't even bother and keep most stuff online, just divided between different wallets.

Just make sure them sites are not going to go anywhere had that with 4 or more exchanges with online wallets. Lucky didn't have much in them and ran into problems going off line hacked and other news on them and come back and now waiting on re payments from the exchange that seems to not be budging much. Like you Panda I use online wallets to some level but too many sites now pop up and come and go just be careful with them

EvilPanda

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Quote from: Jybrael on April 19, 2015, 04:44:42 PM

Well I am new to the Cryptocurrency world...so I don't fully understand the meaning behind Coldstorage. Have read that word a lot in many different threads...just never got the guts to ask...What exactly is cold storage?

Cold storage is in other words an offline storage, it can be for instance a paper wallet or an encrypted wallet.dat stored on a USB stick. When you have a wallet that you're using daily to process transactions it's your hot wallet.

Quote from: medUSA on April 19, 2015, 03:49:58 PM

I keep my coins on Electrum, which is not a multisig wallet. I understand the advantages of a multisig. Then I would have to keep 3 "things" really safe instead of just 1. I might have to do that someday, when I have a huge amount, not worried about it now.

Same here. Maybe if I had a small fortune in Bitcoin I'd be more inclined to make paper wallets and stuff. When I had more coins I used a dedicated netbook running ubuntu that I turned on only to process the payments. Now I don't even bother and keep most stuff online, just divided between different wallets.

Jybrael

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Well I am new to the Cryptocurrency world...so I don't fully understand the meaning behind Coldstorage. Have read that word a lot in many different threads...just never got the guts to ask...What exactly is cold storage?

crazyearner

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Quote from: boopy265420 on April 19, 2015, 04:00:51 PM

Multi signature is good option for those who can not store their Bitcoins in cold storage as paper wallet is safe but same time is very risky to take care good care of that paper. I think it is more better mix your Bitcoins by using some mixer service and keep them in your wallet which to be installed in some device which has less contact with internet.

Not ahd to take care of it. Simply laminating it and sealing up so water and air tight and the need something to unseal is what I do and job done never let me down yet. Why would you want to mix your coins unless want true anonymity with them so no trace but still waste time to mix coins if spending or using in later months to come or for other reason I could understand but odd to mix without reason.

boopy265420

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Multi signature is good option for those who can not store their Bitcoins in cold storage as paper wallet is safe but same time is very risky to take care good care of that paper. I think it is more better mix your Bitcoins by using some mixer service and keep them in your wallet which to be installed in some device which has less contact with internet.

dothebeats

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Cashback 15%

Quote from: coinableS on April 19, 2015, 03:48:36 PM

Quote from: newcripto on April 19, 2015, 03:17:50 PM

I was keeping my bitcoins in standard wallet with good strong encrypted password. What is multi Signature and how can I use it ? Where I can get it from ? How is it more safer than standrad encrypted wallet ?

Think of it like adding an additional lock to your front door.
Standard address only needs one key to get inside.
Multisig addresses can require M of N keys to get inside. (i.e. 2 of 3, or 3 of 5, 4 of 20, whatever/etc).

Here's a good written tutorial:http://sx.dyne.org/multisig.html

D'Angelo goes over them with his blackboard series: https://www.youtube.com/watch?v=zIbUSaZBJgU
There's also this guy: https://www.youtube.com/watch?v=ZKRLJGBMqWo

Now I understand. Instead of "breaking" only 1 "lock", the attacker should "break multiple locks" in order to gain full control of my wallet. Well that seems to be a pretty good thing if you have a large stash that needs some hiding. But I think I'll still use the paper wallet one for now. Anyways, thanks for the links and the information.

coinableS

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Quote from: unamis76 on April 19, 2015, 03:35:12 PM

I currently don't use multisig. The few Bitcoins I have are on paper wallets and on cold storage devices.

When I started saving Bitcoins on cold storage I was still pretty new to all this and saved them on a paper wallet. Later I discovered Armory and I've been using it since.

I've been thinking a lot about multisig in the last few months, but I don't think they would add much more security to the setup I already have. I can either have a split paper backup in many places or the private keys and redeem script to use a multisig address in many places, so there isn't much of a difference. Armory has lockboxes, but I haven't really tried them, as I see no need to use them...

Either there is no advantage in a multisig address on top of cold storage saving, or I'm missing something

If one can physically obtain a split backup, they can also obtain everything they need to spend from a multisig address.

I only see multisig as an advantage on cold storage saving when it comes to having a shared address, just like a shared bank account... Maybe it's really useful in those cases.

That's partially why I'm asking, if I should go multisig.
I was thinking, if someone broke in and found my private keys to a standard address they could figure out how to use them pretty easily, even if they weren't advanced with bitcoin. If someone broke and got my multisig keys and the redeemScript they would have to know how to execute a raw transaction in bitcoin core in order to steal them, so there is that additional level of security that it requires more technical knowledge to use.

medUSA

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--Signature Designs-- http://bit.ly/1Pjbx77

I keep my coins on Electrum, which is not a multisig wallet. I understand the advantages of a multisig. Then I would have to keep 3 "things" really safe instead of just 1. I might have to do that someday, when I have a huge amount, not worried about it now.

coinableS

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Quote from: newcripto on April 19, 2015, 03:17:50 PM

I was keeping my bitcoins in standard wallet with good strong encrypted password. What is multi Signature and how can I use it ? Where I can get it from ? How is it more safer than standrad encrypted wallet ?

Think of it like adding an additional lock to your front door.
Standard address only needs one key to get inside.
Multisig addresses can require M of N keys to get inside. (i.e. 2 of 3, or 3 of 5, 4 of 20, whatever/etc).

Here's a good written tutorial:http://sx.dyne.org/multisig.html

D'Angelo goes over them with his blackboard series: https://www.youtube.com/watch?v=zIbUSaZBJgU
There's also this guy: https://www.youtube.com/watch?v=ZKRLJGBMqWo

unamis76

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I currently don't use multisig. The few Bitcoins I have are on paper wallets and on cold storage devices.

When I started saving Bitcoins on cold storage I was still pretty new to all this and saved them on a paper wallet. Later I discovered Armory and I've been using it since.

I've been thinking a lot about multisig in the last few months, but I don't think they would add much more security to the setup I already have. I can either have a split paper backup in many places or the private keys and redeem script to use a multisig address in many places, so there isn't much of a difference. Armory has lockboxes, but I haven't really tried them, as I see no need to use them...

Either there is no advantage in a multisig address on top of cold storage saving, or I'm missing something

If one can physically obtain a split backup, they can also obtain everything they need to spend from a multisig address.

I only see multisig as an advantage on cold storage saving when it comes to having a shared address, just like a shared bank account... Maybe it's really useful in those cases.

Topic: Should I move my cold storage to multisig? - page 2. (Read 2562 times)