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by theEXTORTCIST 3111 days ago
The attacker only needs to have compromised the device which spends from the wallet file
1 comments

Only a half key exists in permanent storage on device. The other half paper key is loaded into memory for transaction signing, and then removed from memory the moment the transaction is sent off

You would need both halves to sign a transaction

I agree that you need "both halves" in this scenario to sign the transaction.

At some point during the spend from the wallet, the privkey that matches the wallet pubkey has to touch memory. This privkey can in theory be compromised in a number of ways with malware on the spending system (keylogger, screen caps, process memdump, etc).

I think the safest way to go about this is to generate an entirely new keypair/wallet on an isolated system. Spend from your wallet then transfer the balance to the newly created wallet. This minimizes losses as a result of privkey compromise (unless of course your isolated system isn't so secure)