From 416806c7062ae729a31011a609116034dba4d9ba Mon Sep 17 00:00:00 2001 From: "drusselloctal@gmail.com" Date: Thu, 30 Oct 2014 11:59:19 -0700 Subject: [PATCH] Made changes to ch04.asciidoc --- ch04.asciidoc | 6 ++++-- 1 file changed, 4 insertions(+), 2 deletions(-) diff --git a/ch04.asciidoc b/ch04.asciidoc index 03885194..7fdf6fef 100644 --- a/ch04.asciidoc +++ b/ch04.asciidoc @@ -777,9 +777,9 @@ On the fourth level, "change," an HD wallet has two subtrees, one for creating r | m/44'/2'/0'/0/1 | The second private key in the Litecoin main account, for signing transactions |======= -===== Experimenting with HD wallets using sx-tools +===== Experimenting with HD wallets using sx tools -Using the command line tool +sx+, introduced in <>, you can experiment with generating and extending BIP0032 deterministic keys, as well as displaying them in different formats: +Using the command-line tool +sx+, introduced in <>, you can experiment with generating and extending BIP0032 deterministic keys, as well as displaying them in different formats: ==== [source, bash] @@ -806,6 +806,8 @@ yUeAkRPe1kLR1P6Mn7jUrXFquUt === Advanced Keys and Addresses +In the following sections we will look at advanced forms of keys and addresses, such as encrypted private keys, script and multi-signature addresses, vanity addresses, and paper wallets. + ==== Encrypted Private Keys (BIP0038) Private keys must remain secret. The need for _confidentiality_ of the private keys is a truism which is quite difficult to achieve in practice, as it conflicts with the equally important security objective of _availability_. Keeping the private key private is much harder when you need to store backups of the private key to avoid losing it. A private key stored in a wallet that is encrypted by a password may be secure, but that wallet needs to be backed up. At times, users need to move keys from one wallet to another -- to upgrade or replace the wallet software, for example. Private key backups might also be stored on paper (see <>) or on external storage media, such as a USB flash drive. But what if the backup itself is stolen or lost? These conflicting security goals led to the introduction of a portable and convenient standard for encrypting private keys in a way that can be understood by many different wallets and bitcoin clients, standardized by Bitcoin Improvement Proposal 38 or BIP0038 (see <>).