Post
Topic
Board Announcements (Altcoins)
Re: [ANN][KMD][dPoW] Komodo - Zcash Zero Knowledge Privacy Secured by Bitcoin
by
jl777B
on 21/01/2018, 10:56:43 UTC
So many warnings in the claiming instructions...
How it is more risky to use the private key from Ledger Nano S in Agama, than using some other private key in Agama ??

"[Note: You can also use only with 1 Ledger Nano S for this purpose. But, you have to leave your funds exposed(!) for longer. Not recommended.]" ... Exposed to whom, where, how ??
I get the impression that there is some added danger there contrary to using only Agama without any hardwarewallet in the first place.

I'm reasoning that it must be a wrong impression because: Generating private key from the Nano S seed is done offline, logging in to Agama is done offline too (local signing) and resetting the Nano S is also done offline, so the seed/private key is not going anywhere from my PC. That means the only risk is stepping down from hardware-level security to software-level security only momentarily. If you don't have keyloggers, compromised wallet etc. it is not that big of a risk at all.
Is my reasoning reasonable ?
seems pretty reasonable.
Most people maybe are not as astute and have a blackbox "hardware wallet" which they trust is the most secure. By downshifting to where the seed is input into live systems it is less secure than leaving it in the hardware.

that being said by quickly transferring to a new hardware protected address, then it is indeed a short temporary degradation of security level.

another aspect is that by spending from that address, the pubkey will be published on the blockchain, so it loses its cold address security against Quantum Computers from the future