I still think multisig is the best if you can manage the complexity of storing the backups in different locations. Seed XOR is also another good way to do that as well.
Discussion
SeedxOR makes me nervous, but yes multisig is A+ #1, but you really have to plan that out carefully in advance or get rekt.
Yeah you need a solid plan and to really think about how you can still recover funds if multiple backups are compromised.
I love rabbit hole discussions.
What do y’all recommend when it comes to multi-sig backup with long-term cold storage? Especially when it comes to different locations for each seed backups?
Personally I never thought about using a loaded signing device as a backup.
Would having one loaded signing device (locked with a sophisticated pin) for each part of the multi-sig at a different location (such as a safety deposit box) be considered a good backup option?
That way, instead of having one set of the multiple metal plates stored in a safety deposit box, you’d have a secured hardware device locked with an alphanumeric passcode.
Obviously you’d still have set of metal plates secured some other place to create more redundancies in case of potential compromises.
What do y’all think?
I think nostr:npub1ltt9gry09lf2z6396rvzmk2a8wkh3yx5xhgkjzzg5znh62yr53rs0hk97y article here talking about multisig distribution
Interesting. Thanks for the recommendation!
This is great, thanks for sharing 💜🫂
My pleasure. All glory belongs to nostr:npub1ltt9gry09lf2z6396rvzmk2a8wkh3yx5xhgkjzzg5znh62yr53rs0hk97y though
It’s all tradeoffs. You can have 3 devices and 3 seed backups. That’s good redundancy but it’s more complex because now you need 6 different locations to keep track of. If you can secure those spots, then yeah I think it’s worth it. But you have to keep in mind certain risks. For example, let’s say you lose a backup seed and the same signing device that held that seed. Now you have two backups and two signing devices left. But since you need all 3 seeds to recover your funds, you essentially lost everything. You can backup the multisig wallet so that you can still recover the funds with only two of the three keys. But you’d need to keep that file secure somewhere separately as well. So you can see that it can get quite complex. It’s all tradeoffs.
What is seed XOR?
It’s made by coinkite. You basically split your 24 word seed in three (8 words each). I never used it so there could be more it but my guess is you have two backups for each set of 8 words. You store them in 6 different locations kind of like a multisig. I think the benefit is you don’t need so many signing devices and you don’t have to pay the higher fees of a multisig transaction.
Sorry it looks like it is split in two which makes it a little easier to manage. The tradeoff is that only two need to be compromised instead of three. It’s all tradeoffs
I love seed XOR as a backup.
You can do 2, 3, or 4 splits, but 2 is recommended. For example, you have a 24 word seed. It gets split up into two 24 seeds. You need part A and part B to build the actual seed.
So if you could somehow get 3 seeds on steel, you would only need 2-of-3 steel plates. You would not need the descriptor as long as you have 2-of-3 plates.
I'm legitimately paying out "5" grands to the first "6" to message me with "FAITH" cus I feel some people going through difficulties this year, y'all stay blessed.