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Wednesday, 11 July 2018

CoinText question about proprietary algorithm

CoinText works absolutely flawlessly, and I am super-excited about it! :) I've just begun introducing friends to BCH by using CoinText because it's so easy & seamless. Incredible service!

But I want to make sure that I understand this correctly -- CoinText is technically no more secure than a centralized bank, correct?

CoinText's website states that they use a "proprietary algorithm" to create each user's private keys. But what that means is that if this "proprietary algorithm" is ever hacked or leaked or used by a nefarious employee or coerced by a government into being handed over...

... then all of our private keys have just been exploited, correct?

And as we all recall from the nefarious Shapeshit employee who stole bitcoins from that company, internal sabotage can happen when money is on the other end of the sabotage.

I suppose that as long as we all just keep "pocket change" in our CoinText wallets, then this isn't really that big of a deal, right? I mean, if I only kept $10 or $20 in my CoinText wallet and I lost it, it wouldn't be that big of a deal to me.

But that's how we should think about this service, correct? For keeping "relatively small amounts" of money in our wallets?

submitted by /u/scotty321
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from Bitcoin - The Internet of Money https://ift.tt/2KOLn2E

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