wallet VS slips

Not a stupid question. This actually happened https://github.com/bitpay/wallet/issues/9346

the BitPay Copay wallet was vulnerable to private key exfiltration due to a anybody-can-play policy in the Node.js repository. A commonly used function library was abandoned by its developer, taken over by a new developer (by mutual agreement). The new developer added some code which exfiltrated private keys from the Copay wallet when this general-purpose library was being called from the Copay app. Copay was safe one day, a theft wallet the next https://github.com/bitpay/wallet/issues/9346

https://github.com/bitpay/wallet <-- old wallet (still used for the desktop wallet app)

You shouldn't be storing your coins (or withdrawing to) on an online service. At the very least, use a mobile wallet like this one: https://bitpay.com/wallet/

The official SLIP-0039 standard itself confirms it is not possible to convert this mnemonic type to BIP-0039. Down in Section 9 "Compatibility with BIP-039":

For anybody new or returning to SSS, check out SLIP-0039: https://github.com/satoshilabs/slips/blob/master/slip-0039.m...

One of the big downsides of SSS is that it’s very raw and you have to do a lot of legwork to make it actually useable. It’s rightfully criticized for this and the argument follows the don’t roll your own crypto vein.

SLIP39 solves this by formalizing a protocol for handling SSS splits built atop standards for crypto key serialization (BIP-39). SlIP shards are unique on each generation so parties with the same underlying SSS shard can’t compare mnemonics, they’re mnemonically serialized, and have a checksum and group index metadata which makes a more sane UX possible when combining.

Well every wallet chose to solve this problem independently. Trezor proposed a new standard called SLIP10 to do BIP44 type operations coins that did not use secp256k1. Problem is, there are very few utilities I've found that will do SLIP10 derivations.

Checkout the SLIPs repo (https://github.com/satoshilabs/slips.git) and modify testvectors.py. We are going to replace the curvenames and last four show_testvectors lines with the following:

They use an open source algorithm which is documented here. Anyone can verify it and the recovery outside of a Trezor hw-wallet is possible if required.

It will be using SLIP-39, like Trezor and Electrum, or a Ledger rewrite of it. All the language about shards is straight from the SLIP39 spec.

This was all done with the SLIP-14 seed using the passphrase coinjoin if you want to follow along.

With the introduction of the new Coinjoin feature in the latest release of firmware and software, I had the need to dump some of my taproot derivations. Although blockbook can do this fine using descriptors in place of xpubs for taproot accounts, it fails on Coinjoin accounts. This is likely because SLIP-25 as 6 deep derivations while BIP-86 uses a standard derivation depth of 5.

The recovery of Coinjoin accounts is described here. Accessing them outside of Trezor Suite will 100% destroy all privacy obtained since Suite is the only keeper of the anonymity set for each UTXO. Using your CJ coins outside of Suite may also erode the privacy of previous transactions using your Suite Private coins as well.