The Blind oracle feature on the Blockstream Jade is a remote server that enhances the security of this Bitcoin hardware wallet by acting as a virtual secure element
During setup, Jade encrypts your wallet’s recovery phrase using a PIN you create, splitting the decryption key between the device and the blind oracle
The oracle, which can be managed by Blockstream or run independently by the user, holds part of this key and remains “blind” to your wallet data, knowing only a hash of your PIN and a nonce
When you enter your PIN correctly the companion app retrieves the oracle’s portion of the key via an encrypted channel, allowing Jade to decrypt your wallet without ever connecting directly to the internet or exposing your information, making it resistant to physical attacks
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