So what happened with all of those with hardware wallets that have been pwned?
There apparently is no such thing as “your crypto” with how many security problems there are.
So what happened with all of those with hardware wallets that have been pwned?
There apparently is no such thing as “your crypto” with how many security problems there are.
By the nature of blockchain, it's never, ever your crypto. It's allocated to whichever bucket the majority of participants in a given network agree to allocate it to.
Well, not exactly. A malicious majority of miners could rewind the chain as they please. They could indirectly steal some funds by undoing certain transfers, but they couldn’t just directly reassign funds to themselves.
Has anyone calculated the mining capacity of the AI data centre buildouts? Presumably the big firms could out-mine mining firms if they chose to?
Absolutely not, as GPUs used in data centers cannot compete with ASICs designed specifically for Bitcoin mining.
The Bitcoin mining network is somewhere around 1000 EH/s, while the (AI assisted research ahead) 34.5 million H100-equivalent GPUs globally would yield about 0.435 EH/s. They'd represent less than 0.05% of the Bitcoin network.
That's only if they target Bitcoin and not some other coin which doesn't have an ASIC and has a GPU-friendly hash.
If they had built out the same number of ASICs and GPUs, what you said would make sense.
Back around 2012 I created a paper wallet using an offline website (it was HTML and JS downloaded locally that worked without internet. I put it on a USB stick and then use it in a laptop without internet), printed it out and put it in a safe
I did a similar stunt with an old PowerBook where I electrically disabled the WiFi/Bluetooth so it wouldn’t be online unless I plugged in Ethernet, generated keys, and played around with mining. This was back in 2010 when this was all just basically toys for fun. I also encrypted it all with FileVault.
Then I forgot my pass phrase and have never been able to recover any of it. I don’t even know how many btc were mined/lost.
Before anyone asks, no, there aren’t any usable exploits / vulns found for the encryption methods used. And from what I can tell the coins in question have still sat frozen for going in a decade and a half now. I suspect many other hackers did the same thing…
Apparently legacy filevault can be attacked offline with tools like john the ripper.
If you were attempting to mine Bitcoin with a PowerBook I can confidently say you mined zero Bitcoin
Edit: I thought he was talking about 2012 but yeah in 2010 CPU mining was still a thing
Wasn't the difficulty like 6 orders of magnitude easier back then?
Okay maybe in 2010 you could use a CPU but even by 2012 it was entirely dominated by GPUs and I think even dedicated hardware was coming out around that time or soon after
ehhh you could CPU mine in the early months IIRC. The issue was that 50BTC wasn't even worth a penny back then lol
Wasn't there an offline wallet that used a poor algorithm to develop seed phrases, and thus someone stole all of those coins a couple of months ago?
Aren't you thinking of a hardware wallet?
Yes
That's why I went with a paper wallet it seemed way simpler which is what you want for something like this
Definitely Ledger Ledger confirms spy chip implant behind wallet crypto thefts (796 points, 18 days ago, 515 comments) https://news.ycombinator.com/item?id=50054092
Possibly Trezor (35 points, 16 days ago, 3 comments) https://news.ycombinator.com/item?id=50078423
He's thinking of Coldcard, which accidentally switched their RNG from the hardware RNG to a predictable PRNG https://www.cryptotimes.io/learn/what-is-coldcard-hack/
> Coldcard’s software is built on MicroPython, and Coinkite supplies its own hardware-RNG wrapper for the device’s STM32 chip. To avoid conflicts, Coinkite deliberately disabled MicroPython’s built-in RNG path by setting a configuration flag, MICROPY_HW_ENABLE_RNG, to zero. The problem: the underlying library checked only whether that flag was defined, not whether it was enabled (set to a non-zero value). Because a flag set to zero is still “defined,” the build silently compiled against the wrong code, and seed generation fell back to a deterministic software pseudo-random number generator called Yasmarang
Yep, Thank you
bitaddresses .org? If the JS code was defective, the coins can still be stolen later if the hacker can recreate the keys by going through the small key space, despite the coins being created being offline.
Ah yes that's the one, although the domain name isn't plural
I keep a modest amount in Cake Wallet, not on an exchange. No hardware needed.
Tbh the biggest problem is platforms deciding you’re buying drugs because you purchase and transfer out (thanks Venmo)
Technically you can literally memorize your secret key
A paper wallet works as well
A hardware wallet is just a tradeoff between convenience and an extra security risk
insufficient entropy is the real problem. this is why coldcard was hacked
Care to explain?
Let's say I use an open source wallet, generate the keys, send there a few Bitcoin and then I print the wallet
Now the Bitcoin is on a paper wallet, where's the vulnerability here? (except a crazy ex burning it down, but that's besides the point haha)
idk the whole point of hardware wallets is that they are supposed to be a simpler stack. But if you're using a closed source hardware wallet...
An old laptop with the wifi card taken out is more transparent and auditable. It just runs the ordinary open source code
But I just keep all my funds in a hot wallet, no multisig. And if I get hacked I lose it all. I think the answer is just have good security and dont get hacked. The risk of losing cryptocurrency will encourage security advances across the whole ecosystem. I think I will set up multisig eventually
How do you update that open source code without network connectivity? How do you securely input long transaction data to sign?
> I think the answer is just have good security and dont get hacked.
So you proposed a way to be more secure, only to discard it yourself in favor of “just having good security”?
You don’t. It’s not networked. It doesn’t need updates.
In fact, updates are only a risk. You physically remove anything that can allow updates to happen + anything that allows wireless networking.
Then your scheme falls apart as soon as a backwards incompatible update is adopted by the blockchain.
How do you actually use funds like this? I mean, I know this is set aside for later. But if you had an emergency, how fast could you actually spend it?
Trivially. You can simply read the keys on the offline machine with your eyeballs and set up a software or hardware wallet elsewhere to access the account.
What is the offline machine even doing then? Seems like you could replace it with a sheet of paper.
USB flash or QR code to transfer data
I agree my approach is not great, I dont own a lot
I wonder if wallet is not a good or bad analogy considering it would make sense to have many wallets to distribute potential damage instead of being taken out in a single hit... UX issue?
You can have crypto without hardware wallets