Sure, it's theoretically possible but it's such a ineffective approach that it's highly, highly unlikely. What's the point of an attack that writes the seed to the SD card that you are holding in your hand and crypto can possibly easily notice that something was written there and attacker has no access to it?
Use a firewall : If your internet activity happens behind the protection of a firewall, threats like those stemming from bitcoin cryptomining hacks can be kept out. Use a personal VPN : On each device you use, you can access the internet with your own personal VPN. Also, because the firewall can monitor the data leaving your computer, it can prevent your device from being used to hack into others. Antivirus protection : Antivirus programs filter threats, like mining botnet infections, and keep them from attacking your devices. This keeps your internet use private and secure. They can also quarantine and eliminate threats that have already penetrated your device, freeing your computer from their effects.
But as I understand crypto the private key can be any number, so you do not need to even use the seed phrase technique to create a private key, or if you do it isn’t required that it has a valid checksum in order to operate on the network.
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With the rapid rate of growth seen in recent years, the network is suffering from increasing levels of congestion. This means that Bitcoin as we know it is not scaling well. In its current state, Bitcoin does not function as originally intended.
All these points make me think that the best way is ditching the hardware wallet, and creating your own hardware wallet on a generic, airgapped PC where you write your own software (you always hear don't roll your own crypto, but in these case where you don't have to worry about side channel attacks, and you would do the random generation with dice, it should be fine).
Ignorance is the default human condition, so it seems unlikely to me that any specific ignorance of mine in this case demonstrates anything of significance. I’m not sure what point that is which you think has been demonstrated.
This could become a boon to other Alt-coins, as it can allow for atomic swaps to occur. Or it could hurt others, as Bitcoin becomes more flexible, and more powerful, reducing the need to look for a solution elsewhere.
As the network grows, less channels will need to be opened, as the likelihood of having a shared channel between the sender and recipient is increased with a potential 20 hops in between. By using many degrees of separation between senders/recipients, the much loved decentralized nature of the blockchain is maintained.
The Lightning Network utilizes a decentralized network of multiple payment channels in unison. This is achieved using something called HTLC (hashed time-locked contracts), and multi-sig wallets to perform these off chain transactions.
Then Peel realised the risk it was taking and made Powerhouse raise equity to lend money to Protos. In the beginning Peel Holdings was to fund the Protos SPV roiling out Powerhouse Energy’s (PHE) not so revolutionary and unproven waste to hydrogen plants.
When you type the signature on your computer, how do you know you are not unknowingly transmitting your seed? If your hardware wallet is malicious the "signature" it displays could be your seed instead of an actual signature.
Because bitcoin transactions require so much computing power to verify, the hardware for bitcoin mining has to be cooled constantly by special fans. Your average cell phone, desktop, or laptop computer does not have the cooling capabilities to keep the CPU from overheating. As a result, when a computer is hijacked for cryptocurrency
mining, it often overheats and burns up.
While adding such sophisticated attack to GCC or Intel chips somehow would be extremely unlikely. Plus the incentives to do some sophisticated but funny business on a commercial Hardware Wallet is quite high.
In theory, you could review the firmware and flash it yourself. You then just need to trust the hardware isn't backdoored to steal Bitcoin seeds. Also, if I recall correctly, there are fully open source hardware wallets like Trezor. But that would require some rather large companies like ARM to get in the Bitcoin
seed stealing business (and for your computer to be infected by ARM-developed seed stealing malware).
I’d just like to point out (re: the tweet in the original post) that the "Uighur face-matching AI" idea is bullshit invented by scaremongers, with no basis in fact and traceable to a shoddy reddit thread. Australia’s border control facial recognition software is far more advanced than China’s, as is the UK’s, bitcoin and facial recognition is actually pretty common in democracies. The Chinese government is not using facial recognition to identify Uighur, and the facial recognition fears about the Chinese government are vastly overstated.