[bitcoin-dev] Removing Single Point of Failure with Seed Phrase Storage

[Contact Team <contact@cypherock.com>]

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Hi Everyone,
Seed phrase security has been a subject of discussion for a long time now.
Though there are varying opinions on the subject but the conflict usually
arises due to different security models used by different individuals. The
general practice in the space has been to use paper or metal engraving
options to secure seed phrase but those too act as a single point of
failure when secure storage is concerned. The hardware wallets, no matter
whether use a secure element or not can be hacked either through basic
glitching or through bigger schemes state enforced backdoors in the closed
soured SE used.

The option that Cypherock (Cypherock X1 Wallet)  is working on removes a
single point of failure when it comes to storage of seed phrases. It uses 2
of 4 (with the option of setting up custom threshold limit) Shamir Secret
Sharing to  split the seed phrase into 4 different shares. Each share gets
stored in a PIN ( hardware enforced ) Card with an EAL 6+ secure element.
The user would need any 2 of these 4 cyCards to recover the seed or make a
transaction. Ideally they should all be stored at different locations and
this added security through distribution makes losing seed phrase highly
improbable. We have decoupled storage and computation aspect of a hardware
wallet. More information can be obtained from cypherock.com. The purpose of
this mail is to get feedback from the community. Let us know if there is
any feedback, we would love it.

Thanks

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