Having Bitcoins is nice and having them being stored securely is even nicer. Though, as bitcoin bip39 wallet is the case, the bitcoin bip39 wallet security often invites complexity to frequent use of your money. There are great software and hardware solutions that make your money safer than ever.
What's nice about about these solutions is that they hide the complexity of securing your money and give you the best-practice approach to do it. The problem is that they deal with the specific use-case they had in mind and are bitcoin bip39 wallet flexible when you'd like to deviate a bit from the usual path.
It's a great solution that uses TrustedCoin as a co-signer to each of your transactions. With a two-factor setup, bitcoin bip39 wallet computer cannot spend your bitcoins without your entering a code from your cell phone. You will have significantly increased security. And there's also a backup key that allows you to recover your Bitcoins in case TrustedCoin ever goes offline, so you're safe.
Recently some forks bitcoin bip39 wallet Bitcoin happened. There's Bitcoin Cash, Bitcoin Gold and maybe some more precious metal variants in the near-future. Those variants operate on a different chain than the usual Bitcoin, and that means that Electrum and TrustedCoin do not support it. If both my wallet and the co-signing service do not support Bitcoin Gold They hid all the complexity of how they secured me and now I don't know how to recover.
That was just an example of a situation that can happen in many other use-cases - hardware wallets such as Ledger Nano S which I absolutely bitcoin bip39 walletmulti-sig wallets such as Copay and others.
It's important to stress that usually the developers of the different platforms bitcoin bip39 wallet doing an awesome job - they give you all the necessary bits of data that enable recovery. What they don't do, understandably, bitcoin bip39 wallet supporting every different recovery method that a user would like to have.
For example, if your Ledger Nano S hardware wallet is destroyed because you were trading while taking a bath, the main recommendation is to buy a new one and use the "seed words" bitcoin bip39 wallet were given when you created your wallet.
That's great, but what if Ledger goes bankrupt? I have to rummage through ebay to find rare Ledgers? How to store Bitcoins securely is a different matter I won't get into right now, but I want to tell you some good news: In this post I will survey the preliminaries to understand how wallets store your Bitcoin bip39 wallet and other coins using a single seed, how you would recover your Bitcoins in case you decide or can not to use a specific service anymore and what is the backup data you should keep in order to facilitate that.
Bitcoin development happens through BIPs. These are Bitcoin Improvement Proposals. They are announced on the mailing list and assigned a number. Roughly, if there's strong support behind it, it's implemented in Bitcoin clients.
Following is a high-level description of some of the BIPs that support the mechanism with which different bitcoin bip39 wallet manage private keys. BIP32 describes a standard way to generate multiple addresses and private keys from a single private key, in a secure way. The exact technical details can be read in the BIP itself, but I'll highlight the ones I feel important:. In drawings it looks like this: BIP39 describes a standard way to generate a private key from a sequence of human-readable words.
From the user's perspective, she has a Mnemonic Sentence - a sequence of words from which a binary array is derived. The exact number of words is related to the amount of entropy which translates to the level of security. Ledger Nano S, for example, uses a 24 word sequence. There's an awesome tool by Ian Coleman that allows you to generate the master private key given your mnemonic sentence, and following that, the children private keys derived from that.
You can even run this tool offline by either compiling it yourself, or saving the html and running it on an offline computer. BIP44 uses BIP32 and describes a standard way to generate private keys such that you can use the same master private key for different cryptocurrencies or use-cases without risk. BIP16 is a bit more complex to describe in a few words that also convey the motivation, but I'll try - it describes a general way to encode complex scripts in a way that's compatible with single-address schemes and moves the burden of paying the fee for these complex scripts from the sender to the receiver.
Such a complex script can be M-out-of-N multi-sig - an address from which you can only spend using M signatures out of N parties involved. This mechanism is used, for example, in Electrum 2FA, with a 2-out-of-3 multi-sig.
Bitcoin's scripting language is rich and I gave a talk on how it works and other interesting scripts you can use in the BlockchainWTB conference.
Now we're getting to the juicy stuff! We now know all the ingredients we need to recover from many different situation and I'm to describe some bitcoin bip39 wallet these through concrete examples. When you use your new Ledger Nano S for the first time, it walks you through a setup process. In this process, you are presented with a mnemonic sentence of 24 words.
Now you know that these words actually generate a master private key for your Ledger using BIP When you use your different wallet in the chrome apps that Ledger supplies you with, you are actually using the bitcoin bip39 wallet master private key but with different coin types, account indices and bitcoin bip39 wallet indices, as specified in BIP So, if you want to recover from situation where Ledger doesn't work anymore, you could import it into Electrum, for example.
Recovering from a multi-sig wallet service going offline is a bit more complex, but it's still possible. Let's examine a 2-out-of-3 multi-sig Bitcoin wallet case. In this case, the address is derived from the 3 public keys of the different participants. Let's assume we have these:. To transact from this address, you'd have to sign the transaction using 2 of the private keys. In this case, you'd usually use your primary one and the wallet protection service would provide the second signature.
In case the wallet protection service goes offline, you'd use your primary and backup key. Bitcoin bip39 wallet thing is, that in order to transact from a P2SH address you don't need just the 2 private keys, but also a redeem script derived from the 3 public keys. That means, that in order to successfully recover, you also need this redeem script.
So make sure you save that as well. An example of such tool that automates a lot of this process in the case of Bitcoin Cash and Bitcoin Gold forks is bcash-instadump by Nadav Ivgi. For P2SH addresses, you'd have to do the same, but when you sign the transaction, you'd provide multiple private keys and the redeem script. This redeem script is easily attainable in good wallets such as Electrum. I had such a case and wrote some code that uses exactly this redeem script to extract Bitcoin Gold using BitcoinJS.
For other types of coins that use this scheme the recovery process is similar in theory, but it usually requires a different set of libraries and wallet software. For instance, in Ethereum, you may use MyEtherWallet with the derived private keys. If you have some stuck Zcash, bitcoin bip39 wallet may notice that the BIP39 tool misses it. That's actually because of a technical limitation in BitcoinJS - Zcash use an address prefix which is 2 bytes, but BitcoinJS only supports a single-byte address prefixes.
I have a hacky-fix from it that I use, but it's not generic enough to publish. For some coins such as Bitcoin Goldthere are also some wallets that supports the import of single-address private keys, but are not open-source. That doesn't immediately mean the wallet developers are malicious, but it bugs me to use something proprietary like this for sensitive matters like money. I hope this post would encourage people to take advantage of the best security practices, such as using a hardware wallet or multi-sig.
In this latest price surge, a lot of new folks come bitcoin bip39 wallet, techie or otherwise, and are worried of using complex software, but using the easier-to-use ones such as hardware wallets feels like being dependent on a specific piece of software. It might feel like you're losing control bitcoin bip39 wallet your coins, contrary bitcoin bip39 wallet the promise of cryptocurrencies.
I hope this post showed you that you're not actually strongly tied bitcoin bip39 wallet it - you could always recover from it, given you bitcoin bip39 wallet you backed up your private keys, or your seed, and required metadata such as redeem scripts. You can do it bitcoin bip39 wallet or the help of your friendly techier Bitcoiner friend. There are, of course, other recovery bitcoin bip39 wallet which I didn't cover - such as wallets and coins that don't use these schemes and other types of coins which require special handling.
Menu Close Home Subscribe. Overview TL; DR Bitcoin bip39 wallet I can help with Got any type of coin stuck for which you saved some backup and want to consult whether they can be rescued? Want me to walk you through the recovery process? Want to consult how to properly backup your private keys in bitcoin bip39 wallet to be able to recover your coins in the future? Use the BIP39 tool to derive the private keys and then use bcash-instadump Got Bitcoins stuck in a Ledger Nano S who was destroyed but you have the 24 words saved?
Import them into Electrum Got any type of coin stuck in a Ledger Nano S who was destroyed but you have the 24 words saved? It's a bit more complex, but possible - read through the deep dive or contact me - I can help!
Want to know more about the technical details? Deep dive Having Bitcoins is nice and having them being stored securely is even nicer. Quoting from them, With a two-factor setup, your computer cannot spend your bitcoins without your entering a code from your cell phone. Preliminaries Bitcoin development happens through BIPs. BIP32 BIP32 describes a standard way to generate multiple addresses and private keys from a single private key, in a secure way.
The exact technical details can be read in the BIP itself, but I'll highlight the ones I feel important: A parent extended private key can generate many distinct children private keys by an index. The derivation can be done in a "normal" way or a hardened way, bitcoin bip39 wallet a significant security difference exists - in the normal way, it's possible with some additional meta-data to retrieve the parent private key from a child private key, but bitcoin bip39 wallet gain an interesting feature - given the bitcoin bip39 wallet public key, you can view all of its normal children public keys and, for example, monitor their balance.
This path means - take the extended private key, take its hardened child 0 and then from that resulting private key take the normal child 0 - and then you gain a private key you can use. BIP44 BIP44 uses BIP32 and describes a standard way to generate private keys such that you can use the same master private key for different cryptocurrencies or use-cases without risk. That is, it standardizes the path that is used by BIP Bitcoin is 0 and there seems to be bitcoin bip39 wallet that Ethereum is 60, Litecoin is 2 and many others.
Ian Coleman's tool has an extensive list of these, but a wallet doesn't have to conform to it - the coin type is just a convention. This element in the path allows you to distinguish them by assigning different indices to them.
BIP16 BIP16 is a bit more complex to describe in a few words that also convey the motivation, but I'll try - it describes a general way to encode complex scripts in a way that's compatible with single-address schemes and moves the burden of paying the fee for these complex scripts from the sender to the receiver.
Recovery Types of addresses Now we're getting to the juicy stuff! Let's assume we have these:
Setting up an account doesnвt take long and, as long there are enough sellers, it is usually pretty easy to execute an order. I may update the thread before 2018 when I can mine some time from my schedule. Binance registration re- opened ( for a limited time) - Reddit.