Post
Topic
Board Development & Technical Discussion
Re: How Perfect Offline Wallets Can Still Leak Bitcoin Private Keys
by
stv
on 10/12/2014, 11:47:05 UTC
I found some time to look into blinded Schnorr signatures now. It does not prevent my attack, but it indeed makes a practical application of my attack harder. The values “R = kG” and thus information about the private keys are still leaving the offline wallet. But it is not displayed in the transaction any more.

In addition, this solution is not compatible with classic ECDSA, it requires a change to the protocol. This is not required in my proposal of deterministic “k” plus proof.

I think the problem that ZK proofs are comparatively slow is a minor issue in comparison. If a user wants to make a transaction with an offline wallet, it requires time anyway (let alone the time for confirmations). Even if the proof requires minutes to generate and megabytes to store, it does not really matter. The proof is created for the user himself, and he only has to verify it once, he can forget it afterwards. It has NOT to be sent to any other Bitcoin peer and it has not to be stored in the blockchain or anywhere else. If a user transfers his transaction from an offline wallet via a removable medium or something, the size and time is not really that big of an issue. This solution makes sense for some use cases. Note that I don't claim that this is perfect for every Offline wallet setup and use case. Every user* has to decide himself what requirements of security, performance etc.


*) I mean power users who care about offline wallets, e.g. professional users like online merchants or exchanges.