Stupid question: How is it then more secure than the private keys on my device? If someone can send arbitrary things to it to sign if he compromises my device? Is it simply the fact that I can then unplug/change it an my private keys were never directly compromised?

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As soon as that happens you shut down the device and generate a fresh pairing code. Private key stays the same, but they lose access.

Thank you 🙏🏻

Wot 🤯