15 sats \ 2 replies \ @Bitcoin_Bootcamp 23 Jan \ on: Do You Split Up Your Stack? bitcoin
Modern hardware wallets often generate new addresses automatically, and each address is derived from the wallet's seed. While these addresses might appear different, they are fundamentally linked to the same seed. When you request an address from your wallet, it provides a new one, enhancing security.
In most cases, relying on a single hardware wallet should suffice. However, if there is a concern about losing the seed, using two or more hardware wallets can add an extra layer of security. Initially, users might send transactions to the first address provided by their hardware wallet, but later on, managing UTXO could help up this process.
@harrr's idea in the comment section is also reasonable, give it a thought.
Please correct me, if I am wrong :)
My concern around a hardware-generated seed is the actual level of randomness. I haven't looked into anything specific, but for most hardware wallets the randomness seems to be computer-generated - as opposed to rolling dice, etc.
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So, it's more about how much entropy the generated seed has. In my opinion, some hardware wallets really excel in this.
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Hardware Wallets: They use special algorithms to create randomness (entropy) through cryptographic methods, making them secure against various risks. They often let you also add a 25th "word" with your own numbers or letters.
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Dice: They give you randomness based on the physical environment (like the table material or forces applied).
I recommend checking out this article about the secure layer of the open-source Bitbox02 made in Switzerland. Big credit to these Cypherpunks! :)
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