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To: Pavol Rusnak <stick@gk2.sk>
From: Jean-Paul Kogelman <jeanpaulkogelman@me.com>
Date: Wed, 12 Mar 2014 19:26:39 +0000 (GMT)
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Cc: Bitcoin Dev <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] [RFC] Proposal: Base58 encoded HD Wallet
 root key with optional encryption
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=0A=0AOn Mar 12, 2014, at 08:55 AM, Pavol Rusnak <stick@gk2.sk> wrote:=0A=0A=
On 03/12/2014 04:45 PM, Jean-Paul Kogelman wrote:=0AYes I am. There are so=
me differences between BIP 39 and my proposal though.=0A- BIP 39 offers an=
 easy list of words, no gnarly string of case sensitive letters and number=
s.=0A=0AWhich is better IMO. I can't imagine anyone writing down a long Ba=
se58=0Aencoded string.=0A=A0=0AThat depends on your use case. A list of wo=
rds is totally fine for someone to write down, a long string of case sensi=
tive letters is easier to put into a QR code.=0A=0A=0A- BIP 39 only offers=
 one fixed length of entropy, always 12 words, no option to increase or de=
crease the length.=0A=0ANot true, BIP39 supports 12/18/24 words (=3D 128/1=
92/256 bits of entropy).=0A=A0=0AI stand corrected.=0A=0A=0A- BIP 39 doesn=
't have a genesis date field, so no optimization during blockchain rescan.=
=0A=0AThis is nice addition, indeed. But we needed to limit the data as=0A=
possible in order not to increase the number of words needed to be noted=0A=
down.=0A=A0=0AMy proposal didn't have this either initially, but it was de=
emed an essential feature for SPV clients.=0A=0A=0A- BIP 39 doesn't have p=
assword typo detection. No easy way to recover a password if you know most=
 of it.=0A=0AIt has a detection. Not correction though.=0A=A0=0AIf I under=
stand the code correctly (and please correct me if I'm wrong), the validat=
ion only happens on the mnemonic list, not on the password:=0A=0A"Describe=
d method also provides plausible deniability, because every passphrase gen=
erates a valid seed (and thus deterministic wallet) but only the correct o=
ne will make the desired wallet available"=0A=0ASo upon entering a passwor=
d with a typo, the user will not be notified of an error, but be presented=
 with a wallet balance of 0, after the blockchain has been scanned. I'm so=
rry, but that's not the kind of experience I would want to present to my u=
sers.=0A=0A=0A- BIP 39 does not have a user selectable KDF, only 2048 roun=
d PBKDF2-HMAC-SHA512.=0A- BIP 39 can't outsource the KDF computation to a =
3rd party.=0A=0ATrue, but having one or two solid options are better than =
having=0Agazillions of possible options.=0A=A0=0A5 defined KDFs out of a p=
ossible 32 is hardly "gazillions".=0A=0A- BIP 39 wallet implementors can u=
se their own word lists, breaking cross wallet compatibility.=0A=0ATrue, b=
ut they are encouraged to use the list provided. Possibility to=0Aoutsourc=
e KDF outside of your "standard" breaks much more compatibility=0Athan thi=
s.=0A=A0=0AWould you care to elaborate how optional outsourcing of the KDF=
 breaks compatibility?=0A=0Ajp=0A=0A=

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<html><body><div><br><br>On Mar 12, 2014, at 08:55 AM, Pavol Rusnak &lt;stick@gk2.sk&g=
t; wrote:<br><br></div><div><blockquote type=3D"cite"><div class=3D"msg-qu=
ote"><div class=3D"_stretch">On 03/12/2014 04:45 PM, Jean-Paul Kogelman wr=
ote:<br><blockquote class=3D"quoted-plain-text" type=3D"cite">Yes I am. Th=
ere are some differences between BIP 39 and my proposal though.</blockquot=
e><blockquote class=3D"quoted-plain-text" type=3D"cite"></blockquote><bloc=
kquote class=3D"quoted-plain-text" type=3D"cite">- BIP 39 offers an easy l=
ist of words, no gnarly string of case sensitive letters and numbers.</blo=
ckquote><br> Which is better IMO. I can't imagine anyone writing down a lo=
ng Base58<br> encoded string.<br> </div></div></blockquote><span>&nbsp;</s=
pan></div><div>That depends on your use case. A list of words is totally f=
ine for someone to write down, a long string of case sensitive letters is =
easier to put into a QR code.</div><div><br><blockquote type=3D"cite"><div=
 class=3D"msg-quote"><div class=3D"_stretch"><br><blockquote class=3D"quot=
ed-plain-text" type=3D"cite">- BIP 39 only offers one fixed length of entr=
opy, always 12 words, no option to increase or decrease the length.</block=
quote><br> Not true, BIP39 supports 12/18/24 words (=3D 128/192/256 bits o=
f entropy).<br> </div></div></blockquote><span>&nbsp;</span></div><div>I s=
tand corrected.</div><div><br></div><div><blockquote type=3D"cite"><div cl=
ass=3D"msg-quote"><div class=3D"_stretch"><br><blockquote class=3D"quoted-=
plain-text" type=3D"cite">- BIP 39 doesn't have a genesis date field, so n=
o optimization during blockchain rescan.</blockquote><br> This is nice add=
ition, indeed. But we needed to limit the data as<br> possible in order no=
t to increase the number of words needed to be noted<br> down.<br> </div><=
/div></blockquote><span>&nbsp;</span></div><div>My proposal didn't have th=
is either initially, but it was deemed an essential feature for SPV client=
s.</div><div><br></div><div><blockquote type=3D"cite"><div class=3D"msg-qu=
ote"><div class=3D"_stretch"><br><blockquote class=3D"quoted-plain-text" t=
ype=3D"cite">- BIP 39 doesn't have password typo detection. No easy way to=
 recover a password if you know most of it.</blockquote><br> It has a dete=
ction. Not correction though.<br> </div></div></blockquote><span>&nbsp;</s=
pan></div><div>If I understand the code correctly (and please correct me i=
f I'm wrong), the validation only happens on the mnemonic list, not on the=
 password:</div><div><br></div><div><span style=3D"color: rgb(51, 51, 51);=
 font-family: Helvetica, arial, freesans, clean, sans-serif; line-height: =
25.5px;">"Described method also provides plausible deniability, because ev=
ery passphrase generates a valid seed (and thus deterministic wallet) but =
only the correct one will make the desired wallet available"</span></div><=
div><span style=3D"color: rgb(51, 51, 51); font-family: Helvetica, arial, =
freesans, clean, sans-serif; line-height: 25.5px;"><br></span></div><div><=
span style=3D"color: rgb(51, 51, 51); font-family: Helvetica, arial, frees=
ans, clean, sans-serif; line-height: 25.5px;">So upon entering a password =
with a typo, the user will not be notified of an error, but be presented w=
ith a wallet balance of 0, after the blockchain has been scanned. I'm sorr=
y, but that's not the kind of experience I would want to present to my use=
rs.</span></div><div><br><blockquote type=3D"cite"><div class=3D"msg-quote=
"><div class=3D"_stretch"><br><blockquote class=3D"quoted-plain-text" type=
=3D"cite">- BIP 39 does not have a user selectable KDF, only 2048 round PB=
KDF2-HMAC-SHA512.</blockquote><blockquote class=3D"quoted-plain-text" type=
=3D"cite">- BIP 39 can't outsource the KDF computation to a 3rd party.</bl=
ockquote><br> True, but having one or two solid options are better than ha=
ving<br> gazillions of possible options.<br> </div></div></blockquote><spa=
n>&nbsp;</span></div><div>5 defined KDFs out of a possible 32 is hardly "g=
azillions".</div><div><br></div><div><blockquote type=3D"cite"><div class=3D=
"msg-quote"><div class=3D"_stretch"><blockquote class=3D"quoted-plain-text=
" type=3D"cite">- BIP 39 wallet implementors can use their own word lists,=
 breaking cross wallet compatibility.</blockquote><br> True, but they are =
encouraged to use the list provided. Possibility to<br> outsource KDF outs=
ide of your "standard" breaks much more compatibility<br> than this.<br> <=
/div></div></blockquote><span>&nbsp;</span></div><div>Would you care to el=
aborate how optional outsourcing of the KDF breaks compatibility?</div><di=
v><br></div><div>jp</div><div><br></div></body></html>=

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