I have lost all trust in almost everything in the Bitcoin/Nostr space in terms of security. From hardware wallets including the most popular Bitcoin-only ones, to wallet services, to Nostr apps, to LN wallet software… AI slop will only make this worse. This entire ecosystem is built like a house of cards.

Replies (125)

What do you mean? Why are you using AI slop. Dont use those because those vibe coded apps are built by people who don't know how to code, so they end up with security holes.
3 “do not enter” signs are about as effective as 1 “do not enter” sign. That makes sense when you have good security (3 locks are harder than 1) but if they are flawed in mostly the same ways and are basically a paper tiger then it doesn’t matter.
Mr. Sat Stacker's avatar
Mr. Sat Stacker 2 months ago
So, keeping corn on an exchange is better? I dont think so. What's your ideal solution? Cold card is a solid HWW.
Coldcard is not a solid HWW at all. I work on secure element design and several other people that also do agree. Don’t use an exchange. SeedSigner so far is the best approach though it needs more code auditing.
tipping point I reported several security vulnerabilities to LNbits and they took months to fix and ignored it. Alby did not follow basic security practices. many HWWs are weak as shit Nostr apps keep leaking nsecs every few months. The reference Cashu mint is poorly designed and had on one case when I operated it duplicated funds.
The entire ecosystem is not slop but a majority is, and especially the ones that push marketing hard. What they can’t do with skills they try to do with deception whether it be false marketing or gold-coating a turd.
Well it has already contaminated a monetary system so who knows what’s next. Software development should require a license of competency because it can and will create significant harms. From economic losses to disruption of critical infrastructure.
The SeedSigner model intentionally puts firmware verification responsibility on the user. Of course anyone can create a malicious firmware, for any signing device.
Some clients were designed without XSS protection. I believe Coracle sent nsecs to an analytics providers for a while by accident. And a lot of other stuff.
I totally get where you're coming from! But let's not forget there are some great projects working hard to improve security every day. Together, we can build a stronger and safer space! 🚀💪
ESE's avatar
ESE 2 months ago
I think you should go on Facebook and visit your local bank branch; it will help you feel better in no time.
😱😱😱 no!!!!! ALBY: btw, I couldn't reset password to alby. It worked once then when you login it will not work again after resetting it. NOSTR: On your 2nd point about nostr. I joined nostr last yr and when I joined I asked around about security. I don't believe I got a direct answer to it. I know 2 users here who had been breached. 1st user could not recover and she decided to leave. 2nd one, I guess he was famous here, forgot the name, he had to change acct. So it did not surprise me. thankfully, I keep my nostr acct separate from my other stuff. WALLET: As for wallets, I do not use any of them. I had issues with no-kyc exchange and spent my entire Sun troubelshooting them. I decided, I had enough so I left and did not pursue. So I guess the lesson here is, to always protect and never trust the marketing hype. Keep everything quarantine. If I lose this nostr acct and alby, I can afford it. But I am not sure others can. 😔
I doubt anyone is 100% confident in their own setup because there is always an element of trust in play. Maybe go check out my blog on how I've removed a few of those trusted elements. cadayton.onrender.com/blog.
We need to fix the economic system. FOSS has no profit motive so it lives and dies with good intentions. But conversely, profit pushes centralization/control. We need to be clever. A prosperous economic system, without the control/centralization. Working on it.
Outbox relay connections can spread through interactions and follows. If a client is vulnerable but a "trusted" relay was able to filter/block harmful events, an attacker can convince my client to connect directly to an malicious relay and possibly compromise my client.
omg...I was asking this question here:
Lady Mae - Growth Teacher's avatar Lady Mae - Growth Teacher
#asknostr tribe: who is responsible of a breach (god forbid) in any nostr client? Centralised platform, the org of the app is responsible. I am not sure with nostr. Has someone ever talked about it? I understand users have to make sure they keep their private key. But what about if the breach happen in relay or client level? genuinely curious to know considering everything that is going on atm. Whilst we seek freedom, it also means we are responsible to keep everyone secure and safe. Perhaps this discussion already came up in the past? View quoted note →
View quoted note →
Kind of. It's sort of a priority/trade off thing. Basic XSS can be easily mitigated, but the nature of nostr clients is that they're always fetching unknown and untrusted data from servers (relays) and it's often not a priority of the developer (or their AI vibe sessions) to consider the "what could happen if".
Dunno man. I'm just a paranoid sysadmin who thinks everything and everyone is out to get him. It definitely doesn't mean I've formally verified all the attack surface i've worried up XD. I do really just wish more devs were even half as concerned about theoretical attacks (especially those that have existed since the birth of TCP/IP, HTTP, and web browsing)
NVK has been quite adversarial to the Seed Signer project publicly. I wouldn't trust the first propaganda I read about that comparison. IMO, SS is great.
Well said. There are really some abominable security practices out there. And much of the anti establishment attitude and "rebel dev" self-promotion does enough to cover it up and create a sense of false security in the community.
Sure if the criticism is sound, that's another thing. What did you take away from the article?
To be fair, security is hard and nobody or organization is perfect, including me. And nothing wrong with self promotion, especially in open source where funding is scarce or non-existent. But too much overconfidence can be misleading to self and others.
the reason software engineers do not need licence because it is left to the pentesters and employers to do it for regulation purposes. however it does not mean that engineers must ignore basic security foundations. In centralised organisation, there is bigger incentive to keep the system secure due to reputational and monetary consequences. Hence, they hire the likes of cyber sec like pentesters who are regulated and insured to go in and look for vulnerabilities within the scope. The question is, who is responsible when it comes to decentealise platforms which I raised previously from my notes. I also ask, if someone will go in and snoop around nostr clients — do we have breach disclosure channel to report it to and consent? This is left unanswered atm. 😬☺️
💯 agree. I support self-promotion. this thread started with curiosity and now it is turning into a much bigger critical conversation for nostr if we truly want this to grow and get adapted universally. I raised questions so I can reach out to the right people. 🤔☺️
indeed. I am not sure if you remember last yr when I briefly joined. I asked if there were pentesting done in nostr and this was also the same time as the spamming incident. I am not sure where we left it off. If someone will volunteer to pentest nostr, who is the go to contacts? I cannot see disclosure contacts either 😬 what's the consent process to remove liability? 🤔
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2025 Bitcoiners are plebs. They care not for security and privacy. You can see it by how they treat Monero, one of, if not the most solid community project out there. Bitcoin cultured topped in 2017. Few understand.
Reducing attack surface over convenient features. Security hardening is hard because it can not be marketed like the new shiny features. There are few projects that do a good job at it like Grapheme.
i just got a couple emails over past few days to reset pwd for one of those wallet services you mentioned and did NOT request it. Don't keep much sats on there but never saw one of those before. I wont throw them under the bus but paying close attention to all that you mentioned going forward. Thx for heads up. Do not trust verify.
Agreed. Though if I'm being perfectly honest, the approach of "everything is insecure, so I should build my own tools - they'll be more secure!" can be an anti-pattern in the wrong hands. I don't know enough about @ChipTuner or his work to say, but it's a very minor alarm bell. Sometimes the whole ecosystem is improved more by talented and motivated individuals contributing to exiting projects that need help in the areas those individuals identify as weak points.
This project doesn't already exist. Noscrypt was built so that others (including myself) are re-rolling their own nip44 crypto every time they want to create a messaging app. In the case of noscrypt the goal is to be as ubiquitous as openssl. Which btw, noscrypt is not hand-rolled, have a look. Yes there is a judgement cast on "Im smarter and I can build it better" I don't have a good argument to that, it is what it is. My attempt was naivley was to help prevent that. Noscrypt is an "old" project relatively speaking, it is the existing project.
I'll spare my soapbox of a the mono-language/high-level culture language speech, but there is a reason noscrypt is written in a systems language and believe this is the only correct way to be implemented.
Many people in the space are far too confident about their competency in cyber security. I've worked in it full time for years, I involve myself in lab training and I am still sure I know very little. Cryptocurrencies being associated with hackers in pop culture is to mostly blame for this. Using a couple apps and a HWW gets people over their heads. Growing anti-intellectualism by influencers (grifters offering to teach you better than a degree or an industry vet), unvetted GenAI content and a purity test mindset harms the movement. People are too confident to go against what every major company security team says. Working in technology doesn't immediately qualify someone as cyber security aware, never mind an expert. People always make basic mistakes. Cryptocurrency companies and people get pwned all the time.
Russo's avatar
Russo 2 months ago
They are all specialists of knowing nothing about.. 😂 Come to the Dark Forest, we are waiting for you to use your skills to build real deals, you are better than all this guys. Come build ''nostr 2.0'' with like minded people, and forget this guys, they don't know what they are doing, and as the years pass it is worst and worst. There is no space for guys like us here, don't waste more time, is a lost battle, they are all pushing to the other side of freedom.
there's probably plenty of them, they're just not evenly distributed. or magic. i designed a way to separate identity from authorization to avoid ever having your nsec in any app, based on my time designing and implementing high performance, distributed single sign-on at the new york stock exchange 🤷
I said it topped in 2017. 2013 was the year with biggest momentum. That was indeed THE time.
Welcome to the "PaPer' Bitcoin standard. Where everybody but a select few trade IOUs day in and day out to "make it" in the fiat hamster wheel. We are so fucked.
The last thing software engineering needs is licensing. Bitcoin's biggest weakness is it is software. Gold is hardware.
This is still because of a dependent mindset. Bitcoin security represents self-responsibility, being sensible about your context, and in harmony with your own skills. Trust yourself more than any entity or hardware or software. Keep it simple, keep it safe.
weak secure elements, bad architecture, UX is suboptimal, the designers of the architecture don’t know much about proper security, and not related but the company behind it has done a lot of shady shit.
casey's avatar
casey 2 months ago
Disagree on the “solid HWW” Ux is difficult. Their Security isn’t secure. And the company is general has a shady past. Sets off entirely too many alarms for me
casey's avatar
casey 2 months ago
Yes. Do a quick search. It’s well documented
tails + xpassxc + sparrow and borderwallets and/or shamir for backup. is that bulletproof? no. is there a better option? also no. you can't even trust any hw (e. g. intel me) anyway.
E's avatar
E 1 month ago
This statement about Coinkite? If so, can you point me to the shady shit they've done?
E's avatar
E 1 month ago
Same question here. Lots of generalities being being thrown out, but no specifics (no names, no examples, etc.)
casey's avatar
casey 1 month ago
It’s all pretty public stuff. Quick search will find it. The shady bits is him forking the trezor code the locking it back down against the open source license. Then took legal action against Foundation for forking CC before he changed the license type.
casey's avatar
casey 1 month ago
That’s a whole other thing. It’s bee researched and documented. It has to do with their secure element. You can find it and make a decision if it affects your personal threat model.
You mean the stuff about a year ago that someone had managed to extract the secret with some crazy apparatus when having physical access? (can't remember if it was X-ray laser or what it was - expensive thing anyway)
That is just the surface. The SEs they have used are in general insecure, lack any security certifications, and the Coldcards are vulnerable to many supply chain attacks that I have not published yet. Modern attacks with the same method you mentioned btw would cost at most $2K with a DIY setup.
Kind of. The developers of Coldcard do not do not have the security experience required to properly maintain a secure codebase.
casey's avatar
casey 1 month ago
Oh yeah thanks for the reminders damn the list is longer than I remembered
E's avatar
E 1 month ago
Thanks for the response and this information. I did a quick search on CC and secure elements, testing, analysis, insecure, etc. but only getting their links and other promo crap...
E's avatar
E 1 month ago
Thanks for this, looking into Borderwallets and shamir now, new to me. xpassxc is now keepassxc, correct?