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Gwada97159

nano ledger is safe ?

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2 hours ago, Gwada97159 said:

Hey folks,

 

could you please explain me why nano ledger is safe, if yes, is there a tutorial how to use it ?

 

Best.

When people talk about wallets in the context of crypto currencies they are really talking about software that handles secret keys and the use of those keys to sign transactions. A transaction must be signed using your secret key for it to be valid. There aren't really any coins, they are just existing implicitly given all the transactions registered. So "wallet" is a somewhat  imprecise metaphor.

With a hardware wallet:

1. Your secret keys are created inside the hardware wallet.

2. The secret key never leaves this wallet, not even is you use it on a infected computer. 

To make a transaction:

1. Software on your computer creates a unsigned transaction.

2. The unsigned transaction is sent to the hardware wallet, where it is signed using the secret key. And here you can see the destination address on the display, and you have to physically press keys to approve before the transaction is signed.

3. The signed transaction is sent back to the computer, which sends it to the network.

So the advantage is that your keys never are on your computer, were they are vulnerable to spyware, viruses etc.

Lets say you install a fake wallet, or a wallet that has a bug someone has exploited, that reroutes your transaction to somewhere unintended. Doesn't matter, because the unsigned transaction contains the destination address and you can see it on you nano ledger display, if it isn't the correct one you just don't press the keys that approve its signing.

And of course no rogue wallet can steal your keys, as they are not on your computer.

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2 hours ago, tomkri said:

When people talk about wallets in the context of crypto currencies they are really talking about software that handles secret keys and the use of those keys to sign transactions. A transaction must be signed using your secret key for it to be valid. There aren't really any coins, they are just existing implicitly given all the transactions registered. So "wallet" is a somewhat  imprecise metaphor.

With a hardware wallet:

1. Your secret keys are created inside the hardware wallet.

2. The secret key never leaves this wallet, not even is you use it on a infected computer. 

To make a transaction:

1. Software on your computer creates a unsigned transaction.

2. The unsigned transaction is sent to the hardware wallet, where it is signed using the secret key. And here you can see the destination address on the display, and you have to physically press keys to approve before the transaction is signed.

3. The signed transaction is sent back to the computer, which sends it to the network.

So the advantage is that your keys never are on your computer, were they are vulnerable to spyware, viruses etc.

Lets say you install a fake wallet, or a wallet that has a bug someone has exploited, that reroutes your transaction to somewhere unintended. Doesn't matter, because the unsigned transaction contains the destination address and you can see it on you nano ledger display, if it isn't the correct one you just don't press the keys that approve its signing.

And of course no rogue wallet can steal your keys, as they are not on your computer.

So what you're saying essentially for those who aren't as tech savvy, is that we are not at risk of Ledger the company being able to access the tokens we deposit in our Nanos, and our hardware wallets are indeed 100% safe? 

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14 minutes ago, RegalChicken said:

So what you're saying essentially for those who aren't as tech savvy, is that we are not at risk of Ledger the company being able to access the tokens we deposit in our Nanos, and our hardware wallets are indeed 100% safe? 

The Devils advocate @RegalChicken sir Likealot. :ok:

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22 minutes ago, RegalChicken said:

So what you're saying essentially for those who aren't as tech savvy, is that we are not at risk of Ledger the company being able to access the tokens we deposit in our Nanos, and our hardware wallets are indeed 100% safe? 

Unfortunately not. You have to put your trust somewhere in any case.

https://en.bitcoin.it/wiki/Hardware_wallet#Security_risks

 

If you for example create a paper wallet you must trust the software that generates the secret key. Also, with a paper wallet eventually you will have to enter the secret key into your computer. 

Can I trust my laptop? Not 100%. Neither the hardware or the software I have installed. I don't think it is possible to eliminate all risk.

So if the guys at Nano Ledger has a long term evil plan of stealing secret keys I suppose they can do so. But I consider this risk to be tiny compared to the risk of my laptop being compromised through spyware and viruses. 

 

Another thing to keep in mind is that the destination address you see on your actual computer screen could be manipulated. Then a hardware wallet wouldn't help either of course, as this address is the one you would compare with on hardware wallet's display. Maybe someone made your browser show a fake address when sending coins to Bitrex...

Edited by tomkri

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2 hours ago, tomkri said:

 

That's more or less what I thought. I feel like the only truly safe method in the wild west of crypto is multiple wallets / exchanges. So at least them if you do get compromised you don't lose everything in one fell swoop. 

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4 minutes ago, RegalChicken said:

That's more or less what I thought. I feel like the only truly safe method in the wild west of crypto is multiple wallets / exchanges. So at least them if you do get compromised you don't lose everything in one fell swoop.

It is the all eggs in one basket problem. I know the feeling. I myself do keep all on Nano Ledger, but I don't have life-changing amounts. If I did maybe I would keep some in paper wallet, some on Ledger, some on Trezor (also hardware wallet), some on reputable exchange in a jurisdiction  I trust like USA or EU, but unlike Coconut-Island. But anyway, overall I do feel hardware wallets are safest. 

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