@ -610,7 +610,7 @@ BTC public key: 029ade3effb0a67d5c8609850d797366af428f4a0d5194cb221d807770a15228
==== Encrypted Private Keys (BIP-38)
((("bitcoin improvement proposals", "Encrypted Private Keys (BIP-38)")))((("keys and addresses", "advanced forms", "encrypted private keys")))((("public and private keys", "encrypted private keys")))Private keys must remain secret. The need for _confidentiality_ of the private keys is a truism that is quite difficult to achieve in practice, because 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 might 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 <<paper_wallets>>) 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 BIP-38 (see <<appdxbitcoinimpproposals>>).
((("bitcoin improvement proposals", "Encrypted Private Keys (BIP-38)")))((("keys and addresses", "advanced forms", "encrypted private keys")))((("public and private keys", "encrypted private keys")))((("passwords", "encrypted private keys")))Private keys must remain secret. The need for _confidentiality_ of the private keys is a truism that is quite difficult to achieve in practice, because 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 might 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 <<paper_wallets>>) 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 BIP-38 (see <<appdxbitcoinimpproposals>>).
BIP-38 proposes a common standard for encrypting private keys with a passphrase and encoding them with Base58Check so that they can be stored securely on backup media, transported securely between wallets, or kept in any other conditions where the key might be exposed. The standard for encryption uses the Advanced Encryption Standard (AES), a standard established by the National Institute of Standards and Technology (NIST) and used broadly in data encryption implementations for commercial and military applications.
@ -776,7 +776,7 @@ So does a vanity address increase security? If Eugenia generates the vanity addr
[[paper_wallets]]
==== Paper Wallets
((("keys and addresses", "advanced forms", "paper wallets")))((("paper wallets", id="paperw04")))((("wallets", "paper wallets", id="Wpaper04")))Paper wallets are bitcoin private keys printed on paper. Often the paper wallet also includes the corresponding bitcoin address for convenience, but this is not necessary because it can be derived from the private key. Paper wallets are a very effective way to create backups or offline bitcoin storage, also known as "cold storage." As a backup mechanism, a paper wallet can provide security against the loss of key due to a computer mishap such as a hard drive failure, theft, or accidental deletion. As a "cold storage" mechanism, if the paper wallet keys are generated offline and never stored on a computer system, they are much more secure against hackers, key-loggers, and other online computer threats.
((("keys and addresses", "advanced forms", "paper wallets")))((("paper wallets", id="paperw04")))((("wallets", "types of", "paper wallets", id="Wpaper04")))Paper wallets are bitcoin private keys printed on paper. Often the paper wallet also includes the corresponding bitcoin address for convenience, but this is not necessary because it can be derived from the private key. Paper wallets are a very effective way to create backups or offline bitcoin storage, also known as "cold storage." As a backup mechanism, a paper wallet can provide security against the loss of key due to a computer mishap such as a hard drive failure, theft, or accidental deletion. As a "cold storage" mechanism, if the paper wallet keys are generated offline and never stored on a computer system, they are much more secure against hackers, key-loggers, and other online computer threats.
Paper wallets come in many shapes, sizes, and designs, but at a very basic level are just a key and an address printed on paper. <<table_4-14>> shows the simplest form of a paper wallet.
judymcconville@roadrunner.com
7 years ago