Author: Tier Nolan 2016-08-06 11:13:52
Published on: 2016-08-06T11:13:52+00:00
The email conversation revolves around the safety of Bitcoin transactions and the importance of key management to prevent loss of funds. The writer suggests that while the reversal of transactions is not impossible, it should not happen unexpectedly, and if it is clear in the script that a reversal is possible, then the recipient can take it into consideration. Additionally, managing risk by keeping some keys offline is an important part of key management. The conversation also touches on the safety of 0-conf transactions and how BitGo has implemented an "instant" system to prevent double spending. It is noted that reversible payments should be treated as such and that moving coins from cold storage to hot storage should prioritize security over convenience. The discussion also highlights the concept of vaults, where a portion of an exchange's funds are held in cold storage and require manual intervention to access. This is meant to prevent theft by hackers who gain access to the servers. The writer argues that setting up offline keys to act as firebreaks is part of good security practices and should not be ignored.
Updated on: 2023-06-11T19:19:02.760812+00:00