Securing Your Funds With Armory
Offline Wallets
The Most Secure Way to Manage You Bitcoins!
• There is no risk-free way to manage your Bitcoins on an internet-connected computer
• Solution: Use Armory Offline Wallets– Keep private keys on an offline computer– Generate addresses and monitor incoming
payments with an online system, risk-free– Execute offline transactions using a USB key
Online attackers are no threat to a wallet that has never touched the internet!
Armory Security Model
• Your primary online system
• A permanently-offline system– Any system with 512MB RAM will work– Will never touch the internet again
• USB drive or read/write media– Anything with more than 1MB space
You can acquire an “offline” system on Ebay or Craigslist for less than $50!
What You’ll Need
Preparing the Offline Wallet
• Make sure both systems are running Armory
Preparing the Offline Wallet
• Create a wallet like normal on the offline system• Use encryption for security against physical theft
Preparing the Offline Wallet
• Make a digital or paper backup from the offline system (can use USB cable to connect to printer)
Preparing the Offline Wallet
• In wallet properties, “Create Watching-Only Copy”• Save watching-only wallet to USB drive
Preparing the Offline Wallet
• Transfer USB to online system, import into Armory• In wallet properties, click on “Belong To” field• Check “This wallet is mine”
Preparing the Offline Wallet
• The online system now produces identical addresses as the offline system!
Preparing the Offline Wallet
• Track transactions the same way as a regular wallet• Even if online computer is compromised the attacker cannot
spend any of the funds!
Executing an Offline Transaction
• The online system can create an “unsigned transaction” which is much like an unsigned check
• Save to USB and copy to the offline system for signing
Executing an Offline Transaction
• Use the offline computer to sign the transaction• Transfer the transaction back to the online system
Executing an Offline Transaction
• Finalize the transaction by broadcasting it to the Bitcoin network from the online computer
• It will be processed and verified like any other transaction!
Extra Notes
• The watching-only wallet only reveals the linkage between all the addresses generated by it
• Compromise of the watching-only wallet is a breach of privacy but not a breach of security
• The transaction data transferred via USB is not sensitive
• It is acceptable to use plain email or borrowed USB drive to transfer transaction data
With a little practice you will be executing offline transactions in under one minute!
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