bitcoin security - multisignature in theory and practice - martin albert
TRANSCRIPT
Multi-Signature in theory and
practice
BitcoinSecurity
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
I was asked once:
Why would I ever need Bitcoin?
I can buy and sell everything I want with normal money
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Problem: Who CONTROLS your money?
When your money is controlled by someone else
It is no longer your money.
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Status Quo - Intermediary
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Status Quo - Intermediary
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Status Quo - Intermediary
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Status Quo - Intermediary
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Status Quo - Intermediary
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Problem solved? – Bitcoins
- Centralized Service??
- Give up control over my coins??
- Security issues with hackers?
- Sites close over night???
--> SAME PROBLEM AS BEFORE!
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
so…where should I store my Bitcoins
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
What if.. A service exists where you- DO NOT give up control over your coins
- DO NOT allow even the administrators to access your coins
- IS NOT possible that Hackers can steal coins, even when the server is compromised
-DO NOT need to trust the trading party, as still an escrow is in place? EVEN when the site is closed?
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Trick: Multi-Signature wallets
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Multi signature wallets
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Multi signature wallets
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Hackers and admins see encrypted wallets
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
“Normal” TransactionHow does it work?
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Part 1: Create multi-signature addressMulti-Signature
-Get two or more Bitcoin addressees.
-Combine them using addmultisigaddress JSON-RPC command
-As a result, you will get a special Bitcoin address starting with „3”.
-The resulting Bitcoin address is fully functional and can receive coins.
-You can create different combinations of M-of-N addresses. It means that you can specify how many private keys are needed to spend the coins.
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Part 2: Spending coins from multi-signature walletsMulti-Signature
-Create a transaction draft using createrawtransaction JSON-RPC command -Sign the resulting transaction data with one of private keys, utilizing signrawtransaction command -provide it with correct details, which may include: public key and redeem script-Pass partially signed transaction data to other party, which repeats this process-Finally, you broadcast the transaction to the network (using sendrawtransaction or another means)
Two-Factor authentication
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
And the last resort: Dead Man’s Switch
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Centralized services
www.bitalo.comPhone: +49 6322 9419292 | e-mail: [email protected]
Decentralized services
YOUFOR watching
THANK