Author: BitPLATES® (Chris) 2021-05-08 15:21:51
Published on: 2021-05-08T15:21:51+00:00
The Bitcoin Improvement Proposal (BIP) suggests a new method of introducing two-factor authentication called the 'quantum' passphrase. The idea is to protect a Bitcoin wallet using only 24 seed words and provide plausible deniability about the existence of this separate 2nd layer passphrase. The 'quantum' passphrase offers an exponential increase in the level of protection, as that offered by the original BIP39 mnemonic seed words. This method of passphrase generation consists of generating the BIP39 mnemonic seed words using a BIP39-compatible hardware wallet and converting these seed words into the 'quantum' passphrase following four simple rules which do not destroy the integrity of the initial data. This proposal aims to provide a very safe and secure 'low-tech' option that requires minimal (non-destructive) adjustments to the seed words. Firstly, it leaves no evidence of its existence on any backup devices, providing plausible deniability in case of coercion. Secondly, it discourages user-created words or sentences which often provide a drastically reduced level of passphrase security. The large amount of data required to produce a 'quantum' passphrase (up to 96 characters long) encourages the physical backup of the passphrase.Furthermore, the use of BIP39-only words provides a higher degree of standardization, which can help to avoid potential mistakes made by creating unnecessarily complicated combinations of letters, numbers, and symbols. A two-wallet configuration provides the user an opportunity to safely split the two factors of protection (equivalent to a 2 of 2 'multi-sig' setup). If a BIP39-compatible passphrase is created using a new set of 24 seed words, it provides 76 degrees of extra complexity (ie. 1 with 76 zeros, or 10⁷⁶ possible combinations of words). Following just four non-destructive BIP39-compatible rules, the 24 seed words can also function as a 'quantum' passphrase. The passphrase is simply a single string of all 24 seed words, set out using the above rules. This proposal provides adequate risk-management, considering the production of multiple backup devices, strategically stored in multiple geographical locations.
Updated on: 2023-05-21T02:28:50.134757+00:00