Thread

1. matesz · 1789648229 · focus · HN ↗

   I’ve read so many news stories of people gone missing who had been know to have sole access to bitcoin wallets with large amount of bitcoins in them.

   I wonder how people at large crypto exchanges handle that. Perhaps shamir share the access to the pkey password and store parts at secure places like a bank? And make official access protocol akin to dnssec, but simplified?

   1. ecesena · 1789659936 · focus · HN ↗

      A better solution (than Shamir secret sharing) are threshold signatures.

      The difference is that with Shamir you have to reconstruct the private key in one place before you can sign. With threshold signatures multiple servers can collaboratively sign without ever reconstructing the private key in a single place.

      For chains like Solana, Aptos, SUI that use ed25519 (schnorr signature), there's a pretty clean solution called FROST.

      For Bitcoin and Ethereum/EVMs that use ECDSA it's a bit trickier but there's been a lot of research recently, so there are solutions.

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