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Introduction to the design concept, characteristics, advantages and disadvantages of cold Wallet

       Cold wallet refers to the bitcoin storage technology developed by information technology companies that provide blockchain digital asset security storage solutions. Cold wallet can effectively prevent hackers from stealing by integrating digital currency storage, multi transaction password setting, publishing latest market and information, and providing hard fork solution.

Hardware cold Wallet
The storage function of hardware cold wallet is similar to hard disk, but it needs to pay password when it trades, and generates strong seed password randomly to obtain private key and address. Each transaction is digitally signed and noted, which can be checked at any time; The app at the Internet can query the latest market and information online, open transparent information, automatically detect the transaction confirmation, and never contact the private key, and it is safe and safe.
Design concept
1. the network is not safe. As long as it is the equipment contacting the network, it may be attacked.
2. The U disk is unsafe, the U disk may be implanted with virus, and the U disk implanted with the virus may automatically record data. After being inserted into the computer with network, the data will be stolen through the network.
3. a single person is untrusted. All authorization must be double confirmed by multiple individuals to ensure safety.
4. everyone may have an unexpected event, so the authorized person needs to go to the remote backup to ensure safety.
5. the person may be kidnapped, so important data need to be kept in the bank safe with high security level, and the data can be removed only when he or she goes to the bank himself.
Private key generation and backup
1. generate 10000 private keys and corresponding addresses on a completely offline computer.
2. AES encryption is performed on the private key on the fully offline computer.
3. delete the original private key.
4. AES password is controlled by two people from different places of the company.
5. two persons who have the AES code shall not ride the same vehicle to avoid the risk of accidents.
6. generate QR code encrypted documents by using the private key and clear text address after the previous encryption.
7. the address document is generated by scanning the two-dimensional code completely offline computer for daily use. Each time the hot money bag is sent to the cold wallet, an unused address must be used, and each address cannot be reused.
8. print and save the QR code encrypted document to the safe with high security level. Even if the document master is kidnapped, it cannot obtain the encrypted document, because the document master must go to the bank himself to obtain the document.
9. back up the two-dimensional code encrypted documents in the remote bank safe.
10. local and remote bank safe must be held by two different people.
11. two persons who master the bank safe shall not ride the same vehicle.
12. the controller of local and remote bank safe shall not be the same as the two controllers of AES code.
Online to cold Wallet
1. take the corresponding address from the address document. According to the security level, each address shall not be remitted more than 1000B.
2. each address can not be used again after it is used once.
Take money from cold Wallet
1. send someone to the bank safe near the office to take out the corresponding number of unused private key ciphertext, and retrieve it by scanning QR code.
2. put the private key ciphertext into the fully offline computer through QR code scanning.
3. the person who has the AES password decrypts on the completely offline computer to obtain the private key plaintext.
4. import private key plaintext into another completely offline computer through QR code scanning.
5. sign the transaction on another fully offline computer, and synchronize the signed transaction to the network computer broadcast transaction through QR code or USB disk.
Features of cold Wallet
1. the cold wallet currency is stored in a decentralized way, and a certain number of bitcoin is stored in each address.
2. all private keys are stored on a fully offline computer.
3. make sure that the private key never contacts the network or USB disk.
4. the private key encrypted documents should be backed up in different places and controlled by different people in different places.
5. AES password of private key must also be controlled by two different people in different places, and it shall not be the same as the person who holds the private key.
6. the two groups of people who master the private key ciphertext document or private key password must be in different places, preferably in other countries.
7. once a private key is online, it will be void and will never be used again.
Advantages and disadvantages of cold Wallet
The advantage is that the safety performance is higher than the online wallet, which includes light wallet and neutral wallet
The disadvantage is that it is not convenient to use
As long as the system that is not physically and network isolated has the possibility of being attacked, it only depends on the cost of attack and the benefit of success. The amount of hot wallet in the bitcoin trading platform is very small, which is not worth attacking by 0-day and other means. At the same time, the cold wallet scheme has a private key of 1000 currencies at most. No one will pay a lot of money to attack a system with only 1000 currencies.

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