Hackernoon logoHow to protect your digital currency from governments, criminals, and hackers. by@Moonstash

How to protect your digital currency from governments, criminals, and hackers.

1) Create a multisig wallet
2) Deposit your coins into the multisig wallet
3) Give 3rd parties keys required to sign any transaction from your wallet.

How to do this safely

To be as safe as possible you should make sure the 3rd parties are dispersed across the globe in various different jurisdictions preferably non communist countries and make sure you never reveal who these people are to anyone for any reason. Make sure they know not to approve any transactions when you’re under duress no matter the consequences.

What this does

It makes it so even if you’re detained, kidnapped, or otherwise being pressured to do something with your funds there is no possibility of you being able to comply without cooperation from the 3rd parties who need to sign off on transactions for funds to move.

Will this keep your funds safe?

Yes and no depending on your definition of safe in this context and why someone is trying to do something with your funds (such as a hacker) or compel you to do something with your funds (such as governments or criminals) against your will. What this will do (when done properly) is prevent you from losing your funds against your will at least for a time.

How this protects you

  • It makes it take time for 3rd parties to get your funds if they are even ultimately ever able.
  • It makes it expensive for governments to seize your funds due to needing to traverse other legal jurisdictions to force the other signatories required participation in the unlocking of your funds.
  • It makes it virtually impossible for hackers to take your funds even if your personal private key is compromised.

Flaws with this

  • You have to trust other humans who are susceptible to outside influence and have the free will to act against your wishes.
  • You might be arrested, killed, or have other undesirable consequences.

Currently the only multisig wallet I trust is Armory. I will update the post if I find any that seem suitable for other cryptocurrency.

Until the technology exists to detect duress when unlocking encrypted files I currently know of no way to achieve this level of protection without trusting 3rd parties (other humans) will execute your wishes in setups similar to this.


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