Received: from sog-mx-4.v43.ch3.sourceforge.com ([172.29.43.194] helo=mx.sourceforge.net) by sfs-ml-4.v29.ch3.sourceforge.com with esmtp (Exim 4.76) (envelope-from ) id 1WNqUX-0002VL-3Y for bitcoin-development@lists.sourceforge.net; Wed, 12 Mar 2014 21:15:09 +0000 Received-SPF: pass (sog-mx-4.v43.ch3.sourceforge.com: domain of gmail.com designates 209.85.216.180 as permitted sender) client-ip=209.85.216.180; envelope-from=will.yager@gmail.com; helo=mail-qc0-f180.google.com; Received: from mail-qc0-f180.google.com ([209.85.216.180]) by sog-mx-4.v43.ch3.sourceforge.com with esmtps (TLSv1:RC4-SHA:128) (Exim 4.76) id 1WNqUV-00067P-B9 for bitcoin-development@lists.sourceforge.net; Wed, 12 Mar 2014 21:15:09 +0000 Received: by mail-qc0-f180.google.com with SMTP id x3so132339qcv.11 for ; Wed, 12 Mar 2014 14:15:01 -0700 (PDT) MIME-Version: 1.0 X-Received: by 10.224.62.13 with SMTP id v13mr59062694qah.10.1394658901890; Wed, 12 Mar 2014 14:15:01 -0700 (PDT) Received: by 10.140.31.135 with HTTP; Wed, 12 Mar 2014 14:15:01 -0700 (PDT) In-Reply-To: <994afcd1-798d-452a-850c-02b5ce393dd3@me.com> References: <5320C27B.8090205@gk2.sk> <994afcd1-798d-452a-850c-02b5ce393dd3@me.com> Date: Wed, 12 Mar 2014 16:15:01 -0500 Message-ID: From: William Yager To: Jean-Paul Kogelman Content-Type: multipart/alternative; boundary=089e015371dc6e1b0a04f46f54d1 X-Spam-Score: -0.6 (/) X-Spam-Report: Spam Filtering performed by mx.sourceforge.net. See http://spamassassin.org/tag/ for more details. -1.5 SPF_CHECK_PASS SPF reports sender host as permitted sender for sender-domain 0.0 FREEMAIL_FROM Sender email is commonly abused enduser mail provider (will.yager[at]gmail.com) -0.0 SPF_PASS SPF: sender matches SPF record 1.0 HTML_MESSAGE BODY: HTML included in message -0.1 DKIM_VALID_AU Message has a valid DKIM or DK signature from author's domain 0.1 DKIM_SIGNED Message has a DKIM or DK signature, not necessarily valid -0.1 DKIM_VALID Message has at least one valid DKIM or DK signature X-Headers-End: 1WNqUV-00067P-B9 Cc: Bitcoin Dev Subject: Re: [Bitcoin-development] [RFC] Proposal: Base58 encoded HD Wallet root key with optional encryption X-BeenThere: bitcoin-development@lists.sourceforge.net X-Mailman-Version: 2.1.9 Precedence: list List-Id: List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , X-List-Received-Date: Wed, 12 Mar 2014 21:15:09 -0000 --089e015371dc6e1b0a04f46f54d1 Content-Type: text/plain; charset=ISO-8859-1 On Wed, Mar 12, 2014 at 4:08 PM, Jean-Paul Kogelman wrote: > > Agreed, this is a valid concern. This could possibly allow a 3rd party to > crack the password, but then again, they would not gain access to any key > material. So yes, you could expose your password, but your key would still > be safe. > > If people feel strongly about this vulnerability, we can revisit step 4 > and adjust it to make password recovery more expensive. > > Just to clarify on J.P.'s comments: *If* you choose to outsource StrongH calculation, and *If* that machine is compromised, then the security of your password is reduced to a single round of salted PBKDF2-HMAC-SHA512. Your private key remains on the trusted device, no matter what. Regrettable, but not catastrophic. Will --089e015371dc6e1b0a04f46f54d1 Content-Type: text/html; charset=ISO-8859-1 Content-Transfer-Encoding: quoted-printable
On Wed, Mar 12, 2014 at 4:08 PM, Jean-Paul Kogelman <jeanpaulkogelman@me.com> wrote:

Ag= reed, this is a valid concern. This could possibly allow a 3rd party to cra= ck the password, but then again, they would not gain access to any key mate= rial. So yes, you could expose your password, but your key would still be s= afe.

If people feel strongly about this vulnerability, we can re= visit step 4 and adjust it to make password recovery more expensive.=


Just to clarify on J.P.'s comments:

*If* you choose to outsource StrongH calculation, a= nd *If* that machine is compromised, then the security of your password is = reduced to a single round of salted PBKDF2-HMAC-SHA512. Your private key re= mains on the trusted device, no matter what.

Regrettable, but not catastrophic.

=
Will
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