• key exfiltration
  • background use of key material
Both things that are mitigated by having the key off-device.
Are blind signers better than dedicated hww or airgapped laptops? No. Are they the SAME as phone hot wallets? Also no. Key security is a gradient and there are more than two points on the spectrum.
Both are also solved by using an encrypted software wallet.
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doesnt help with key exfiltration if the host device is compromised
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Yes it does. If the wallet is properly encrypted, you can't decrypt from just having access to the phone.
If you mean that the wallet would be swept as soon as you send a transaction, it's the same with a card wallet.
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Cards key isn’t resident in memory on the phone. The encrypted hot key is, when you have the app open. They’re different models.
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Functionally zero difference. It's much more of a difference that you suddenly have to trust the software wallet AND the card wallet. You double your attack surface.
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