Armory offline wallets


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Armory offline wallets

  1. 1. Securing Your Funds With Armory Offline Wallets The Most Secure Way to Manage You Bitcoins!
  2. 2. <ul><li>There is no risk-free way to manage your Bitcoins on an internet-connected computer </li></ul><ul><li>Solution: Use Armory Offline Wallets </li></ul><ul><ul><li>Keep private keys on an offline computer </li></ul></ul><ul><ul><li>Generate addresses and monitor incoming payments with an online system, risk-free </li></ul></ul><ul><ul><li>Execute offline transactions using a USB key </li></ul></ul>Online attackers are no threat to a wallet that has never touched the internet! Armory Security Model
  3. 3. <ul><li>Your primary online system </li></ul><ul><li>A permanently-offline system </li></ul><ul><ul><li>Any system with 512MB RAM will work </li></ul></ul><ul><ul><li>Will never touch the internet again </li></ul></ul><ul><li>USB drive or read/write media </li></ul><ul><ul><li>Anything with more than 1MB space </li></ul></ul>You can acquire an “offline” system on Ebay or Craigslist for less than $50! What You’ll Need
  4. 4. <ul><li>Make sure both systems are running Armory </li></ul>Preparing the Offline Wallet
  5. 5. Preparing the Offline Wallet <ul><li>Create a wallet like normal on the offline system </li></ul><ul><li>Use encryption for security against physical theft </li></ul>
  6. 6. Preparing the Offline Wallet <ul><li>Make a digital or paper backup from the offline system (can use USB cable to connect to printer) </li></ul>
  7. 7. Preparing the Offline Wallet <ul><li>In wallet properties, “Create Watching-Only Copy” </li></ul><ul><li>Save watching-only wallet to USB drive </li></ul>
  8. 8. Preparing the Offline Wallet <ul><li>Transfer USB to online system, import into Armory </li></ul><ul><li>In wallet properties, click on “Belong To” field </li></ul><ul><li>Check “This wallet is mine” </li></ul>
  9. 9. Preparing the Offline Wallet <ul><li>The online system now produces identical addresses as the offline system! </li></ul>
  10. 10. Preparing the Offline Wallet <ul><li>Track transactions and balances the same way as a regular wallet </li></ul><ul><li>Even if online computer is compromised the attacker cannot spend any of the funds! </li></ul>
  11. 11. Executing an Offline Transaction <ul><li>The online system can create an “unsigned transaction” which is much like an unsigned check </li></ul><ul><li>Save to USB and copy to the offline system for signing </li></ul>
  12. 12. Executing an Offline Transaction <ul><li>Use the offline computer to sign the transaction </li></ul><ul><li>Transfer the transaction back to the online system </li></ul>
  13. 13. Executing an Offline Transaction <ul><li>Finalize the transaction by broadcasting it to the Bitcoin network from the online computer </li></ul><ul><li>It will be processed and verified like any other transaction! </li></ul>
  14. 14. Extra Notes <ul><li>The watching-only wallet only reveals the linkage between all the addresses generated by it </li></ul><ul><li>Compromise of the watching-only wallet is a breach of privacy but not a breach of security </li></ul><ul><li>The transaction data transferred via USB is not sensitive </li></ul><ul><li>It is acceptable to use plain email or borrowed USB drive to transfer transaction data </li></ul>With a little practice you will be executing offline transactions in under one minute!