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15 sats \ 5 replies \ @TheL0wner 31 Mar 2023 \ parent \ on: Stop pushing HWW and complex multisig setup to normies bitcoin
all of that assumes your collab partner continues to exist. otherwise recovery is a giant pain in the ass when it is possible at all. I'd rather trust in my own ability to not lose important things.
Even if it’s a pain (which is ultimately relative), it’s way better to have a real option to recover funds instead of losing them completely, like if you lose a passphrase.
Think of collaborative custody as security diversification. There are real benefits to using experts that specialize in bitcoin wallet security, especially when the only risk in the event that they become FULLY compromised is some added inconvenience.
Security is not convenient.
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security can very well be convenient, it's all up to you.
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To some extent yes - it's all about balancing what's practical/convenient vs what's actually secure.
For example, using the same password for everything is more convenient than using a different one each time. Using a password manager is a good compromise, but is still more inconvenient than just using the same password for everything, especially when there's no autofill. Using MFA always adds inconvenience, and the things that make it more convenient bring the potential for vulnerabilities. Using a hardware key (like a yubikey) is probably the best form of MFA, but requires the extra step of having a physical device.
Bitcoin is objective and irreversible, and to take security as seriously as is necessary, there is going to be some inconvenience. Engraving a seed phrase into metal is less convenient than writing it on paper, but it's disaster-proof.
And I mean, ideally, your single-sig recovery process doesn't require going to a second location. That's inconvenient. But it's safer than keeping everything at your house.
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Another problem of collaborative multisig !
Still another one, any centralized database will leak. 99% users of HWW send with real names addresses and numbers, once the data leaks they are now targets for all kind of attacks. Unchained, Ledger, indirect sellers like Amazon ...
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First off - if your view is that breaches are inevitable (which is not unreasonable), hot wallets are a significantly bigger target.
Second - if ledger or trezor were breached, an attacker could come to your home and steal it. You’re either done right then and there, or you have a backup that you’re fully reliant on. Multisig fixes this.
In the worst case scenario for unchained, they lose every private key - you STILL don’t have a single point of failure, you can easily recover funds, and the attacker can’t do anything with the unchained keys. Not only does that make them less of a target, it makes them a futile target.
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