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Bitcoin Study Resources Curated by Finney21
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Library21 3 months ago
912,097 Topic: Airgapped Multisig Format: Informal article Author: Finney 21 Team Title: Why Airgapped Hardware is More Secure than Internet-Connected Software for Bitcoin Security ~12 min read — In Bitcoin, securing private keys is critical. Private keys are the cryptographic secrets that grant access to funds, and any compromise can lead to catastrophic loss. While various methods exist to protect Bitcoin, airgapped hardware solutions stand out as the gold standard for security, particularly when compared to internet-connected software. This resource explores why airgapped hardware is superior, delves into the role of multisig wallets in enhancing security, and highlights the importance of eliminating single points of failure. —> The Vulnerability of Internet-Connected Software Internet-connected software, such as hot wallets running on smartphones, computers, or cloud-based platforms, inherently carries significant risks. These systems are constantly exposed to the internet, making them susceptible to a wide range of attacks, including: 1. Malware and Keyloggers: Malicious software can infiltrate devices through phishing emails, compromised websites, or unverified downloads, silently capturing private keys or seed phrases. 2. Remote Exploits: Hackers can exploit vulnerabilities in operating systems, wallet software, or network protocols to gain unauthorized access to funds. 3. Phishing and Social Engineering: Internet-connected devices are prime targets for phishing attacks, where users are tricked into revealing sensitive information or installing malicious software. 4. Supply Chain Attacks: Software updates or third-party dependencies can be compromised, introducing backdoors that expose private keys. Even with robust antivirus software and careful user practices, the attack surface of an internet-connected device is vast. A single vulnerability—whether in the operating system, wallet software, or user behaviour—can lead to a total loss of funds. —> The Strength of Airgapped Hardware Airgapped hardware, by contrast, is a device that is physically isolated from the internet and any network connectivity. Examples include dedicated hardware wallets like Coldcard which are configured for airgapped operation, or even purpose-built computers that never connect to the internet. This isolation provides several key security advantages: 1. Elimination of Network-Based Attacks: Since airgapped devices have no internet connectivity, they are immune to remote hacking attempts, malware infections, or phishing attacks that rely on network access. 2. Physical Control: Airgapped hardware requires physical access to compromise, significantly reducing the risk of unauthorized access. An attacker would need to physically steal the device and bypass additional security measures like a PIN or passphrase. 3. Tamper Resistance: High-quality hardware wallets are designed with secure elements—specialized chips that protect private keys even if the device is physically compromised. These chips are resistant to physical attacks and often destroy sensitive data if tampering is detected. 4. Simplified Attack Surface: Unlike general-purpose computers or smartphones, airgapped hardware is purpose- built for securing encrypted information. Devices run minimal, auditable firmware, reducing the number of potential vulnerabilities compared to complex, internet-connected operating systems. For Bitcoin users, airgapped hardware is typically used to store private keys or sign transactions offline. Transactions are created on an internet-connected device, transferred to the airgapped device (via SD cards, USB drives, or QR codes), signed securely, and then broadcast back to the network. This workflow ensures that private keys never leave the isolated environment, drastically reducing the risk of exposure. —> Multisig: Enhancing Security Through Distributed Trust While airgapped hardware provides robust protection for private keys, relying on a single key introduces a single point of failure. If that key is lost, stolen, or destroyed, the associated Bitcoin becomes inaccessible or vulnerable. This is where multisignature (multisig) wallets come into play, offering a powerful way to enhance security and eliminate single points of failure. —> What is Multisig? A multisig wallet requires multiple private keys to authorize a Bitcoin transaction, typically configured in an "M-of- N" setup. For example, in a 2-of-3 multisig wallet, three private keys are created, and at least two must sign a transaction for it to be valid. These keys can be stored on separate airgapped hardware devices, held by different individuals, or kept in distinct geographic locations. —> Benefits of Multisig for Bitcoin Security 1. Elimination of Single Points of Failure: Unlike a single-key wallet, where the loss or compromise of one key results in total loss, multisig distributes trust across multiple keys. If one key is lost or stolen, the funds remain secure as long as the required threshold (e.g., 2 out of 3) is not met. 2. Enhanced Theft Resistance: An attacker would need to compromise multiple airgapped devices or keys, which is exponentially more difficult than targeting a single key. This makes multisig particularly appealing for high-value Bitcoin holdings. 3. Redundancy Against Loss: Multisig allows users to recover funds even if one key is lost. For example, in a 2-of-3 setup, losing one key still leaves two others to access the funds, providing a safety net against accidents like hardware failure or natural disasters. 4. Collaborative Control: Multisig can be used to enforce shared custody, such as in business partnerships or family inheritance plans, ensuring that no single party can unilaterally move funds. —> Implementing Multisig with Airgapped Hardware Multisig wallets are ideally paired with airgapped hardware for maximum security. Each private key can be stored on a separate airgapped device, such as a Coldcard, and kept in distinct, secure locations (e.g., a home safe, a bank vault, or with a trusted custodian). Transactions are signed offline on each device, ensuring that no single device or location holds complete control over the funds. Sparrow Wallet is a free open source coordinator that supports multisig setups with airgapped hardware, making it accessible to both technical and non-technical users. —> The Importance of Eliminating Single Points of Failure Single points of failure are a critical vulnerability in any security system, and Bitcoin is no exception. A single private key stored on an internet-connected device is a prime target for hackers, while a single key on a single hardware device risks loss due to theft, damage, or user error. By combining airgapped hardware with multisig, users can mitigate these risks: - Distributed Risk: Storing keys on multiple airgapped devices in different locations reduces the likelihood of total loss from theft, fire, or other disasters. - Resilience Against Human Error: Multisig provides redundancy, allowing funds to be recovered even if one key is lost or forgotten. - Protection Against Coercion: In scenarios where an attacker demands access to funds, multisig ensures that no single keyholder can be forced to surrender complete control. For example, a user might set up a 2-of-3 multisig wallet with one key on an airgapped Coldcard at home, another on a Trezor in a safe deposit box, and a third held by a trusted family member. Even if one key is compromised or lost, the funds remain secure and accessible. —> Practical Considerations While airgapped hardware and multisig offer unparalleled security, they require careful planning and discipline: - Backup Management: Seed phrases for each key must be securely backed up (e.g., on metal plates) and stored in separate locations to prevent loss. - User Education: Setting up and using multisig with airgapped devices requires a learning curve. Users must understand how to safely handle transactions and maintain their setup. - Cost and Complexity: Airgapped hardware and multisig setups involve purchasing multiple devices and potentially higher transaction fees due to the complexity of multisig scripts. However, for significant Bitcoin holdings, the cost is negligible compared to the risk of loss. —> Conclusion Airgapped hardware provides a fortress-like defense for Bitcoin security by isolating private keys from cyber threats on the internet. When paired with multisig wallets, this approach eliminates single points of failure, distributing trust and ensuring resilience against theft, loss, or coercion. While internet-connected software wallets may offer convenience, they pale in comparison to the robust security of airgapped hardware, especially for long- term or high-value Bitcoin storage. By embracing airgapped multisig setups, individuals and businesses can achieve peace of mind, knowing their funds are protected by the strongest tools available in the Bitcoin ecosystem.
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Library21 9 months ago
Unlike real estate, the cost to own and store bitcoin is effectively zero No taxes, fees, maintenance or surprise costs Bitcoin can be HODLed with maximum capital retention compared to any other asset 95% of people don’t understand it yet Makes sense to get some just in case it catches on #nostr #bitcoin #money #hodl image
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Library21 9 months ago
Website update in progress Preparation for the next wave Full service Bitcoin advisory We help individuals & companies put in 100 hours of Bitcoin study so they can adopt better money — Study Acquire Steward Maintain Repeat Thank you Satoshi #nostr #bitcoin #advisory image
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Library21 11 months ago
879,803_21 Bitcoin and Me Author: Hal Finney Format: informal online article, 4 min read Published: March 19, 2013
Bitcoin and Me | Satoshi Nakamoto Institute
Advancing and preserving bitcoin knowledge
 — I thought I’d write about the last four years, an eventful time for Bitcoin and me. For those who don’t know me, I’m Hal Finney. I got my start in crypto working on an early version of PGP, working closely with Phil Zimmermann. When Phil decided to start PGP Corporation, I was one of the first hires. I would work on PGP until my retirement. At the same time, I got involved with the Cypherpunks. I ran the first cryptographically based anonymous remailer, among other activities. Fast forward to late 2008 and the announcement of Bitcoin. I’ve noticed that cryptographic graybeards (I was in my mid 50’s) tend to get cynical. I was more idealistic; I have always loved crypto, the mystery and the paradox of it. When Satoshi announced Bitcoin on the cryptography mailing list, he got a skeptical reception at best. Cryptographers have seen too many grand schemes by clueless noobs. They tend to have a knee jerk reaction. I was more positive. I had long been interested in cryptographic payment schemes. Plus I was lucky enough to meet and extensively correspond with both Wei Dai and Nick Szabo, generally acknowledged to have created ideas that would be realized with Bitcoin. I had made an attempt to create my own proof of work based currency, called RPOW. So I found Bitcoin facinating. When Satoshi announced the first release of the software, I grabbed it right away. I think I was the first person besides Satoshi to run bitcoin. I mined block 70-something, and I was the recipient of the first bitcoin transaction, when Satoshi sent ten coins to me as a test. I carried on an email conversation with Satoshi over the next few days, mostly me reporting bugs and him fixing them. Today, Satoshi’s true identity has become a mystery. But at the time, I thought I was dealing with a young man of Japanese ancestry who was very smart and sincere. I’ve had the good fortune to know many brilliant people over the course of my life, so I recognize the signs. After a few days, bitcoin was running pretty stably, so I left it running. Those were the days when difficulty was 1, and you could find blocks with a CPU, not even a GPU. I mined several blocks over the next days. But I turned it off because it made my computer run hot, and the fan noise bothered me. In retrospect, I wish I had kept it up longer, but on the other hand I was extraordinarily lucky to be there at the beginning. It’s one of those glass half full half empty things. The next I heard of Bitcoin was late 2010, when I was surprised to find that it was not only still going, bitcoins actually had monetary value. I dusted off my old wallet, and was relieved to discover that my bitcoins were still there. As the price climbed up to real money, I transferred the coins into an offline wallet, where hopefully they’ll be worth something to my heirs. Speaking of heirs, I got a surprise in 2009, when I was suddenly diagnosed with a fatal disease. I was in the best shape of my life at the start of that year, I’d lost a lot of weight and taken up distance running. I’d run several half marathons, and I was starting to train for a full marathon. I worked my way up to 20+ mile runs, and I thought I was all set. That’s when everything went wrong. My body began to fail. I slurred my speech, lost strength in my hands, and my legs were slow to recover. In August, 2009, I was given the diagnosis of ALS, also called Lou Gehrig’s disease, after the famous baseball player who got it. ALS is a disease that kills moter neurons, which carry signals from the brain to the muscles. It causes first weakness, then gradually increasing paralysis. It is usually fatal in 2 to 5 years. My symptoms were mild at first and I continued to work, but fatigue and voice problems forced me to retire in early 2011. Since then the disease has continued its inexorable progression. Today, I am essentially paralyzed. I am fed through a tube, and my breathing is assisted through another tube. I operate the computer using a commercial eyetracker system. It also has a speech synthesizer, so this is my voice now. I spend all day in my power wheelchair. I worked up an interface using an arduino so that I can adjust my wheelchair’s position using my eyes. It has been an adjustment, but my life is not too bad. I can still read, listen to music, and watch TV and movies. I recently discovered that I can even write code. It’s very slow, probably 50 times slower than I was before. But I still love programming and it gives me goals. Currently I’m working on something Mike Hearn suggested, using the security features of modern processors, designed to support “Trusted Computing”, to harden Bitcoin wallets. It’s almost ready to release. I just have to do the documentation. And of course the price gyrations of bitcoins are entertaining to me. I have skin in the game. But I came by my bitcoins through luck, with little credit to me. I lived through the crash of 2011. So I’ve seen it before. Easy come, easy go. That’s my story. I’m pretty lucky overall. Even with the ALS, my life is very satisfying. But my life expectancy is limited. Those discussions about inheriting your bitcoins are of more than academic interest. My bitcoins are stored in our safe deposit box, and my son and daughter are tech savvy. I think they’re safe enough. I’m comfortable with my legacy. — #nostr #legend #bitcoin #library #cryptography #property #HalFinney image
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Library21 11 months ago
878,799 The Bitcoin Standard Author: Saifedean Ammous Published: March 2018 Format: Book (304 pages) #nostr #money #bitcoin #library image
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Library21 11 months ago
878,798 Bitcoin First: Why investors need to consider bitcoin separately from other digital assets Author: Chris Kuiper Published: January 2022 Format: Formal Research Report (26 pgs)
bitcoin-first.pdf
 #nostr #wealth #bitcoin #library image
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Library21 11 months ago
877,948 Bitcoin: A Peer-to-Peer Electronic Cash System Author: Satoshi Nakamoto Published: October 31, 2008 Format: Formal Whitepaper (9 pgs) https://bitcoin.org/bitcoin.pdf #nostr #bitcoin #library #satoshi #whitepaper image
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Library21 11 months ago
877,947 A Declaration of the Independence of Cyberspace Author: John Perry Barlow Written: February 8, 1966 Format: Formal Declaration (844 words) — Governments of the Industrial World, you weary giants of flesh and steel, I come from Cyberspace, the new home of Mind. On behalf of the future, I ask you of the past to leave us alone. You are not welcome among us. You have no sovereignty where we gather. We have no elected government, nor are we likely to have one, so I address you with no greater authority than that with which liberty itself always speaks. I declare the global social space we are building to be naturally independent of the tyrannies you seek to impose on us. You have no moral right to rule us nor do you possess any methods of enforcement we have true reason to fear. Governments derive their just powers from the consent of the governed. You have neither solicited nor received ours. We did not invite you. You do not know us, nor do you know our world. Cyberspace does not lie within your borders. Do not think that you can build it, as though it were a public construction project. You cannot. It is an act of nature and it grows itself through our collective actions. You have not engaged in our great and gathering conversation, nor did you create the wealth of our marketplaces. You do not know our culture, our ethics, or the unwritten codes that already provide our society more order than could be obtained by any of your impositions. You claim there are problems among us that you need to solve. You use this claim as an excuse to invade our precincts. Many of these problems don't exist. Where there are real conflicts, where there are wrongs, we will identify them and address them by our means. We are forming our own Social Contract. This governance will arise according to the conditions of our world, not yours. Our world is different. Cyberspace consists of transactions, relationships, and thought itself, arrayed like a standing wave in the web of our communications. Ours is a world that is both everywhere and nowhere, but it is not where bodies live. We are creating a world that all may enter without privilege or prejudice accorded by race, economic power, military force, or station of birth. We are creating a world where anyone, anywhere may express his or her beliefs, no matter how singular, without fear of being coerced into silence or conformity. Your legal concepts of property, expression, identity, movement, and context do not apply to us. They are all based on matter, and there is no matter here. Our identities have no bodies, so, unlike you, we cannot obtain order by physical coercion. We believe that from ethics, enlightened self-interest, and the commonweal, our governance will emerge. Our identities may be distributed across many of your jurisdictions. The only law that all our constituent cultures would generally recognize is the Golden Rule. We hope we will be able to build our particular solutions on that basis. But we cannot accept the solutions you are attempting to impose. In the United States, you have today created a law, the Telecommunications Reform Act, which repudiates your own Constitution and insults the dreams of Jefferson, Washington, Mill, Madison, DeToqueville, and Brandeis. These dreams must now be born anew in us. You are terrified of your own children, since they are natives in a world where you will always be immigrants. Because you fear them, you entrust your bureaucracies with the parental responsibilities you are too cowardly to confront yourselves. In our world, all the sentiments and expressions of humanity, from the debasing to the angelic, are parts of a seamless whole, the global conversation of bits. We cannot separate the air that chokes from the air upon which wings beat. In China, Germany, France, Russia, Singapore, Italy and the United States, you are trying to ward off the virus of liberty by erecting guard posts at the frontiers of Cyberspace. These may keep out the contagion for a small time, but they will not work in a world that will soon be blanketed in bit-bearing media. Your increasingly obsolete information industries would perpetuate themselves by proposing laws, in America and elsewhere, that claim to own speech itself throughout the world. These laws would declare ideas to be another industrial product, no more noble than pig iron. In our world, whatever the human mind may create can be reproduced and distributed infinitely at no cost. The global conveyance of thought no longer requires your factories to accomplish. These increasingly hostile and colonial measures place us in the same position as those previous lovers of freedom and self-determination who had to reject the authorities of distant, uninformed powers. We must declare our virtual selves immune to your sovereignty, even as we continue to consent to your rule over our bodies. We will spread ourselves across the Planet so that no one can arrest our thoughts. We will create a civilization of the Mind in Cyberspace. May it be more humane and fair than the world your governments have made before. #nostr #cyberspace #freedom #bitcoin #library image
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