Bitcoin Self-Defense, Part I: Wallet ProtectionSubmitted by MMJ Ministry on Tue, 11/05/2013 - 21:07
Bitcoin Self-Defense, Part I: Wallet Protection
by Vitalik Buterin on May 16, 2013
Wallet security has always been a primary concern in the Bitcoin development community. Although no other payment system in existence grants you the same level of freedom and control over your money that Bitcoin does, at the same time it can also be its greatest weakness. If you lose your wallet, or the password to your wallet, there is (usually) no one who can help you recover it. If someone else gains access to your wallet (and your password) and steals everything, there is no way to reverse the transaction. This has all been known for the past four years, and great progress in security has been made, but many people do not realize that we still actually have a long way to go.
Why Cold Wallet Bitcoin Storage Is Not “Technologically More Complex” Than Storing Bitcoin Online
On a USB drive or other data storage medium in a safe place (e.g. safety deposit box, safe)
On a paper wallet
On a bearer item such as a physical bitcoin.
Online, but on encrypted media where the encryption key is offline.
Then there is deep cold storage, in which a USB stick containing an encrypted wallet is put in a vault or something like that. The public (sending) addresses can be used any time to send additional bitcoins to the wallet, but spending the bitcoins would require physical access to the box (in addition to knowledge of the encryption password).
How to make an offline bitcoin wallet using Armory
This is a tutorial for using the Armory client to generate an offline bitcoin wallet, be it on a USB drive or a piece of paper. Armory version used is .88 beta.