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@@ -28,34 +28,36 @@ All Crypto wallets start with a "Seed": a large, random number used to generate
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Bitcoin, Ethereum, etc. wallets.
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The best practice for using these wallets is to load this "Seed" into a secure hardware device, like
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a Trezor hardware wallet. SLIP-39 Mnemonic cards contain the recovery words, which are typed directly
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into the Trezor device to recover the Seed, and all of its accounts.
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a Trezor "Model T" hardware wallet. SLIP-39 Mnemonic cards contain the recovery words, which are
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typed directly into the Trezor device to recover the Seed, and all of its Cryptocurrency accounts.
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The [[https://github.com/pjkundert/python-slip39/releases/latest][macOS and win32 SLIP-39 App]] helps you generate Mnemonic cards and back up this seed, securely and
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reliably, by distributing Mnemonic cards for the seed to partners, family and friends. Also,
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encrypted "Paper Wallets" can be output, to support software cryptocurrency wallets such as
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Metamask, Brave or various mobile phone wallets.
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The [[https://github.com/pjkundert/python-slip39/releases/latest][macOS and win32 SLIP-39 App]] helps you generate Mnemonic cards and back up this Seed, securely
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and reliably, by distributing Mnemonic cards for the Seed to partners, family and friends. Also,
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encrypted "Paper Wallets" can be output, to support safer use of software cryptocurrency wallets
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such as Metamask, Brave or various mobile- and computer-based wallets.
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Later, if you (or your heirs!) need to recover the accounts, they can collect a sufficient threshold
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of the cards and regain access to all of the cryptocurrency accounts related to the seed.
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Later, if you (or your heirs!) need to recover *all* of your Cryptocurrency accounts, they can
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collect a sufficient threshold of the cards and regain access to all of the cryptocurrency accounts
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related to the Seed.
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#+END_ABSTRACT
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#+TOC: headlines 3
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* Security with Availability
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For both BIP-39 and SLIP-39, a 128-bit or 256-bit random "Seed" is the source of an unlimited
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sequence of Ethereum, Bitcoin, etc. HD (Hierarchical Deterministic) Wallet accounts. Anyone who
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can obtain this Seed gains control of all Ethereum, Bitcoin (and other) accounts derived from it,
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so it must be securely stored.
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sequence of Ethereum, Bitcoin, etc. HD (Hierarchical Deterministic) Wallet accounts.
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Losing this Seed means that all of the HD Wallet accounts are permanently lost. Therefore, it
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must be backed up reliably, and be readily accessible.
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Anyone who can obtain this Seed gains control of all Ethereum, Bitcoin (and other) accounts
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derived from it, so it must be securely stored.
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Losing this Seed means that *all* of the HD Wallet accounts derived from it are permanently lost.
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Therefore, it must be backed up reliably, and be readily accessible.
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Therefore, we must:
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- Ensure that nobody untrustworthy can recover the seed, but
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- Store the seed in many places with several (some perhaps untrustworthy) people.
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- Ensure that nobody untrustworthy can recover the Seed, but
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- Store the Seed in many places with several (some perhaps untrustworthy) people.
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How can we address these conflicting requirements?
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@@ -69,15 +71,64 @@ of the cards and regain access to all of the cryptocurrency accounts related to
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#+ATTR_LATEX: :width 4in
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[[./images/slip39-cards.png]]
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*** Why Not a BIP-39 Mnemonic Phrase?
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If *everyone* you talk to is recommending that you just write down your 12- or 24-word phrase
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and store it somewhere, why not do this?
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It is estimated that 20% of Bitcoin is already lost in the first 10 years of its existence,
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stored in wallet addresses that can never be accessed because the corresponding "Private Key"
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has been lost, or the password forgotten.
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The statistical chances of anyone successfully passing a Cryptocurrency wallet Private Key +
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password or Seed to their heirs over a 50-year period is therefore very low. Since memory fades
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and "safe" storage places are lost, destroyed or forgotten, this risk actually increases
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exponentially over time.
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I estimate the probability of successfully inheriting such a Paper Wallet + password or BIP-39
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Mnemonic protected Seed is probably less than 50%. Perhaps *much* less.
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*** Why Not a BIP-38 Encrypted Wallet + Password?
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Have you ever forgotten a password to an online account?
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Well, with a BIP-38 Encrypted Wallet + Password, there is /no password reset/ option; there is
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no way to recover the password.
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If the Wallet is lost, there is of course no way to recover it, even if you have the password.
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This option is perhaps even less desirable than using a BIP-39 Mnemonic Seed phrase, because
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each and every Encrypted Wallet is exposed to this risk of loss.
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** Paper Wallets
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If desired, you can produce encrypted Paper Wallets, to support software crypto wallets
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(eg. Metamask, Brave or various mobile phone wallets):
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(eg. Metamask, Brave or various mobile- and computer-based wallets):
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#+CAPTION: Paper Wallets
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#+ATTR_LATEX: :width 4in
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[[./images/slip39-wallets.png]]
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*** Walking-Around Money
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Money that doesn't /work/ has low utility and hence low value. There are often situations where
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you want to transport money physically, perhaps to buy something somewhere where you have no
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access to a computer, or by mail. Paper Wallets allow this.
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Losing this Paper Wallet usually results in the loss of the funds held in it. But, not if you
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generate it from your Seed!
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Just pick a derivation path you aren't going to use for your own personal wallets (eg. ending in
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=..99'/0/0=), and generate some Paper Wallets (use each derivation path only once, of course).
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Fold them up so that the Private Key is not visible, laminate them and deposit funds into the
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wallet public address using the visible QR code.
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The recipient can cut and unfold the Paper Wallet, exposing the private key and password hint,
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and can transfer the funds into their own wallet.
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If the Paper Wallet is ever lost, you can recover the Private Key (it was derived from your
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Seed!), and transfer the Cryptocurrency back into one of your own wallets.
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* Affiliate Links
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To assist you in obtaining various SLIP-39 compatible components, we have established some
@@ -100,9 +151,9 @@ of the cards and regain access to all of the cryptocurrency accounts related to
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<!-- // End Ad Tag -->
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#+END_EXPORT
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We recommend the Trezor Model T for this reason. No other hardware wallet yet supports direct,
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on-screen SLIP-39 Seed recovery. This feature is, simply, so fundamentally important for Crypto
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Seed security and reliability that we consider it a necessity.
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We recommend the Trezor "Model T" for this reason. No other hardware wallet yet supports direct,
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on-screen SLIP-39 Seed recovery. This feature is, simply, so fundamentally important for
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Cryptocurrency Seed security and reliability that we consider it a necessity.
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