Bitcoin password risks

bitcoin

#1

Hello All, I have a key question here…

When a wallet provides you with a digital seed (12 Aleatory words)… who insures that those 12 words, are not in the hands of the wallet developer, or the software developer or the company owner of the wallet development? hopefully someone could shed some light on this topic.

THANK YOU ALL IN ADVANCE


#2

You trust the wallet developers.
If the wallet application is open source, it can be read by other developers before the code is pushed to the public.
For example, ledger nano’s bitcoin wallet is open source.


If the wallet is closed source, you are totally in the mercy of that wallet’s particular developer.
If he does anything naughty (intentionally or unintentionally), noone will be able to spot the problem except him and his co-workers in the company.


#3

Hello GDF, thanks for your reply this is quite cool to get peoples feedback.

So, BASICALLY ON BOTH ENDS WE ARE AT RISK OF GETTING HACKED?

Thanks again for your time.


#4

Well we are always at risk.
There isnt a 100 percent trustless system.
Same goes with banks…
Do you know how many legacy apps banks need to keep maintaining?


#5

Well… If you want complete safety, you can create an air-tight system (without any connection to the outside world, no wifi, no bluetooth, no internet, no radio/IR/yata-yata-yata), then install a light wallet there, then generate and sign the TXs, and propagate already signed transactions to the network by using the other system (with the connection to the internet).
That way you ensure the safety of your private key(s).

You can use the Raspberry PI for that (I recommend RPi2 as it has no wifi and bluetooth build in)
But, yes, that’s a hassle to program and setup such system.


#6

Thanks B, that is certainly a very complicated process, we should have something in place that is much transparent.

This is what is probably keeping mass adoption out of the process, WE NEED TO SIMPLIFY BITCOIN BEFORE WE OBTAIN MASS ADOPTION.

Thank you for your time, have a great day CryptoBro


#7

Jajajaja, that is a tough question