Post
Topic
Board Wallet software
Merits 2 from 1 user
Re: 2-of-3 vault: Can I spare myself passphrases, words seeds and PIN?
by
o_e_l_e_o
on 23/04/2023, 12:08:29 UTC
⭐ Merited by apogio (2)
In case someone gets one of my packets, they wouldn't be able to steal my money, but they would be able to monitor my transactions. I know that's not the best approach, but I can live with it!
There is a simple way around this. For any m-of-n multi-sig, then you only need to back up n minus m number of xpubs alongside each seed phrase (provided you pick the correct ones) and still have full redundancy and yet also protect your privacy.

For example, using your 2-of-3 system, then you back up 3-2 = 1 xpub alongside each seed phrase, and your 3 back ups would look like this:

Back up 1: Seed A, xpub B
Back up 2: Seed B, xpub C
Back up 3: Seed C, xpub A

As you can see, the compromise of any one back up is insufficient for an attacker to spy on your wallet, while you still only need to recover any 2 back ups to have all the information needed to restore your wallet.