Temporary Seed: Maximum security through temporary seed phrase management
Imagine someone steals your hardware wallet, confident they can access your valuable Bitcoin. But when they open the wallet, they discover it doesn't contain any Bitcoin or seed phrase. Instead, it's a device powered solely by a temporary seed function, serving solely as a tool for signing transactions. This scenario highlights the strength of the temporary seed function: Even if the hardware wallet falls into the wrong hands, your Bitcoin and seed phrase remain completely secure.
What is the Temporary Seed function?
The Temporary Seed function describes a hardware wallet operating mode in which the wallet's seed phrase is not permanently stored on the device. Instead, the seed phrase is only temporarily stored in memory. Once the device is turned off, it is completely deleted. This prevents an attacker who gains physical access to the device from reading the seed phrase. This turns the hardware wallet into a pure signing device – it doesn't store a key, but rather securely signs transactions offline.
Advantages of Temporary Seed
Maximum security with physical access: Because the seed phrase isn't permanently stored on the device with the Temporary Seed feature, it's secure even in the event of a physical attack on the wallet. The seed phrase is only temporarily stored in RAM and is completely deleted when the device is turned off.
Increased flexibilityThe Temporary Seed feature allows you to manage any number of seed phrases without having them permanently stored on your device. This allows for much more flexible Bitcoin storage.
Ideal for Uncle Jim Wallets: The Temporary Seed feature makes it possible to create so-called "Uncle Jim Wallets." This means a user can set up watch-only wallets for friends or family members without requiring them to have their own hardware wallets. This significantly lowers the barrier to entry for friends and family to financial self-custody.
Cost reductionTo reduce the cost of a hardware wallet, a hardware wallet can use temporary seeds, eliminating the need for expensive security components such as a secure element.
Secure management of multi-signature wallets: Thanks to the ability to manage multiple seed phrases without storage, the Temporary Seed feature is perfect for setting up multi-signature wallets. With just a single hardware wallet,
Disadvantages of the Temporary Seed function
Despite the many advantages, there are also some disadvantages. The main one is the loss of convenience. Users have to re-enter the seed phrase each time they use it, which can be cumbersome on devices without a large touchscreen. However, this problem is virtually completely eliminated by the extremely fast seed scanning via the Seed QR code.
Another disadvantage is that it is advisable to store the Bitcoin seed phrase in a Security bag Store in a tamper-evident bag in case someone attempts to access it. This bag should be replaced after each opening.
Another disadvantage is the responsibility for securely storing the seed phrase. Since the key is not stored on the device, it is solely the user's responsibility to securely store the seed phrase externally, for example, on paper. This can involve additional effort and makes the use of a passphrase all the more important to provide additional protection in the event of the seed phrase being lost or stolen.
Who is Temporary Seed suitable for
The Temporary Seed feature is ideal for users who seek maximum Bitcoin security and are willing to sacrifice some convenience. It's particularly well-suited for hardware wallets without a secure element and for managing multiple seed phrases. It's also useful for helping friends and family, or for drastically reducing the cost of a multi-signature wallet.
For users who make frequent transactions, storing the seed phrase on a hardware wallet might be a better choice.
Specter DIY and Specter Shield
The first hardware wallet that supported Temporary Seeds was the Specter DIY. While the seed phrase can be saved on the Specter DIY without a Secure Element, the Agnostic Mode made this unnecessary. For users who want both—the ability to temporarily save seed phrases and simultaneously rely on the extremely secure encryption of the seed phrase using a Secure Element—the Specter Shield The Specter Shield, which features interchangeable secure elements, is the perfect device for people who want the best of both worlds.
Conclusion
The Temporary Seed feature offers maximum security and flexibility, as it only temporarily stores the seed phrase in RAM and not permanently on the device. This means the wallet serves as a pure signing device and is protected from theft or tampering in the event of physical access. The ability to securely set up Uncle Jim wallets or multi-signature setups opens up new approaches to Bitcoin management.
While the Temporary Seed feature requires careful seed storage and offers less convenience, Seed QR and the elimination of PIN protection make it easier to use. This option is aimed at users who prefer the highest level of security and flexibility and are willing to sacrifice some convenience.
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