What do you figure are the best use-cases for Bip-85? Wanna make a video outlining the many ways one could utilize this awesome feature.
Discussion
#[2] #[3]
Agree! Have an ColdCard lying around and think it would be nice to have more ways of utilizing the BIP-85 feature on it.
Well, the obvious one is that it allows you to secure your cold-stored funds securely offline with a metal seed backup and have a separate hot-wallet for spending funds that is also secured by that same metal seed backup without having to compromise the security of your cold-storage.
Another benefit is that I can store some funds for a relative using the security of my cold-storage. You can teach them all about how to manage their own [derivative] seed and how to properly secure and store their seed online or offline, without compromising your own security or setup. That way if they ever screw up, you still can regenerate a copy of their seed and help them recover. It is a great way to gently onboard relatives or people that you have two-way trust with.
As a cautionary tale of what people should NOT do. Don't over-complicate your cold storage setups!
We added BIP-85 support to #[2] (and I even helped out on that PR) but I will never recommend it to anyone. Our UX (and my personal justification for including it) is more about verifying other BIP-85 implementations, but it's intentionally biased against promoting the resulting child seed to be a usable signing seed in the UI.
For sure. Definitely highlights how two-way trust is inherent is such a set up.
I'll outline both of these things in the risk/tradeoff section for sure
My preferred Uncle Jim solution is either:
* Just teach them (as we're all trying to do) and ease them into their own self-custody. But at some point they are off and flying on their own. If they screw up, they learn a valuable lesson. Too bad.
* If I really need to be able to bail them out, I'd maybe consider a 1-of-2 multisig.
But mostly I'm a "learn it + personal responsibility" maxi.
Making some of your cold stack hot so it’s less costly to spend when the time is right 🔥
Another bad idea: Someone previously asked if they could use one BIP-39 backup and then generate three BIP-85 child keys and use those as their 2-of-3 multisig.
😱
Just thinking outloud but it can be used to create/sign a multisig transaction from the same device. Is this a dumb idea?
Please do!