Author: Jochen Hoenicke 2021-03-18 15:29:07
Published on: 2021-03-18T15:29:07+00:00
In a discussion on the bitcoin-dev mailing list, Robert Spigler argued that wallets shouldn't have to check all script types on recovery and proposed a new standard called "Signature and Script Independent Hierarchy for Deterministic Wallets." According to Robert, descriptor wallets can solve this problem. For multisignature wallets, each cosigner stores their extended private key (xprv) and the wallet descriptor for backup. To recover, simply combine M private keys, and check the script designated in 1 of the descriptor copies. For single signature wallets, it is the same, except only one signature is needed. Jochen disagreed with Robert's proposal and pointed out that currently, BIP39/BIP44 wallets can recover all accounts using just the seed words without the need for public keys or derivation paths. Additionally, Jochen stated that most hardware wallets currently rely on this feature. However, autodiscover doesn't work for multisig wallets, unless some output descriptor is stored in an OP_RETURN on the blockchain.Jochen also suggested that while it's okay to make a new standard that requires regular backups, it should be kept in mind that this complicates some use cases. Jochen further explained that a BIP39/BIP44/BIP49/BIP84 wallet can recover all these accounts using just the seed words and that the Trezor Suite does this. Most hardware wallets currently rely on this feature, as they don't store any additional information like output descriptors.In conclusion, the discussion revolved around the pros and cons of different methods for backing up deterministic wallets. While Robert's proposal seeks to separate keys and scripts by creating a new hierarchy, Jochen argues that the existing BIP39/BIP44/BIP49/BIP84 wallets can recover all accounts using just the seed words. The debate highlights the tradeoffs between simplicity and security in wallet backups.
Updated on: 2023-06-14T19:26:49.153311+00:00