With the rise in the value of major cryptocurrencies in recent months, it is more important than ever to know how to keep private keys safe.
We have all seen horror stories that emerge when important seeds for recovery are lost, damaged or inaccessible – or worse, an attacker steals them. The consequences can be serious: Savings can be lost overnight.
But Trezor says it should not be, and it has come up with a new way to protect the cryptocurrency for many years to come … with current security measures that reduce the likelihood of a hacker breaking into the security system.
How Shamir Backup works
Shamir Backup divides the seed into several parts known as recovery lobes – such as Horcrux from the Harry Potter series.
Users can create up to 16 recovery posts, each with 20 word sequences. From there, they have to decide how many shared recovery resources they need to gather to unlock access to the cryptocurrency.
For example, a single user may want to combine two of three common recovery resources to create keys. Another person may decide to cross a threshold of three out of five recovery rates, while another may request five out of eight. The only thing you have to remember is that the wallets can not be redeemed if the required minimum can not be reached.
This approach eliminates one point of error, says Trezor, and most importantly, money can still be raised if any of these redemption shares are lost. Users can freely distribute these campaigns in various safe places, such as with lawyers and loved ones, in lockers and warehouses.
Even if the attacker manages to get a share of the recovery, he can not steal anything, since he does not have a threshold to generate the keys. It also eliminates the risk of an administrator gaining access to the cryptocurrency.
More information from Trezor here
The undeniable advantage of Shamir Backup is that it can allow cryptocurrency investors with a death inheritance scheme. The location of the redeemed shares can be revealed in a will so that the digital assets can be transferred to their closest relatives.
Better than one seed
Trezor states that Shamir Backup offers a number of benefits over a single backup backup beyond those mentioned above. It is based on an encryption algorithm created by Uday Shamir.
It is important to note that his approach uses a different glossary compared to seeds to restore BIP-39. Recovery posts are also likely to be longer than individual backups, which are usually 12, 18, or 24 words long.
Even knowing a few words from a traditional 12-word metaphrase can ruin the rest – and according to Trésor, it can be so dangerous to divide a single word of 24 words into several parts.
Shamir Backup is currently an exclusive feature of the Trezor Model T, a hardware boom book that supports more than 1,000 coins … including big names like Bitcoin, Ethereum and Litecoin.
This flexible device can operate in temperatures from -20 ° C to + 60 ° C, has a bright color screen and can be connected to mobile phones and computers via the USB-C port.
As early Bitcoin users calculate the cost of losing private keys – hard drives are littered and programmers struggle to remember the password for storage stations of hundreds of millions of dollars of cryptocurrency – Shamir Backup can be a silver lining that allows investors to protect crypto for future generations.