Post
Topic
Board Wallet software
Merits 3 from 3 users
Re: Compartmentalized brainwallet
by
nc50lc
on 06/06/2020, 03:00:38 UTC
⭐ Merited by o_e_l_e_o (1) ,ETFbitcoin (1) ,hosseinimr93 (1)
Alternatively, maybe I should run several instances of electrum with separate wallets based on appending alpha, bravo, charlie, etc to the original seed phrase.  Will it let me do that?
You can:
[1] Set a different derivation path for the second, third and fourth account for alpha, bravo and charlie wallets.
Generate a "BIP39 seed" offline and create an Electrum wallet (Standard wallet-> I already have a seed) by enabling "BIP39 seed" in the "Option" below the seed text box.
To set the derivation path for the second account, select the address type and (for legacy) change m/44'/0'/0' into  m/44'/0'/1', m/44'/0'/2' for the third and so on.

 or

[2] Generate a "BIP39 seed" offline and set a "BIP39 passphrase" for alpha, bravo and charlie wallet.
To set a BIP passphrase, enable "extend this seed with custom words" above "BIP39 seed" and provide the BIP39 passphrase in the next window.
Different passphrase will generate different "wallets" (note: BIP39 passphrase is not the wallet's passphrase).

The obvious security flaw here is having a single seed for all the businesses' funds is dangerous.
Once the seed or one wallet was compromised, it's only a matter of time for the other wallets to get hacked,
Specially the first option that can all be hacked instantly once the seed was compromised; the latter will depend on the strength of your BIP39 passphrase.