Recent hacks of cryptos, controlled by private keys stored in hardware wallets (see [1-4]), forced prudent crypto holders to diversify into virtual wallets as a secure tool to manage private keys. In the previous post, an example was given on how to reduce a risk of losses from hardware wallet hacks, in 100 times, by diversifying over 99 virtual wallets and one hardware wallet (see [5]). Some users complained that it is not easy to manage 100 wallets. In this post, we consider a simple way to manage 100 virtual BTC wallets.
To simplify management of 100 virtual wallets, a user need to use a private dynamical passwords generator (DPG). By entering easy memorable key and date, the user can generate 100 virtual passwords with a single click.
Each of these virtual passwords can be used as input data (virtual key) to a converter, which generates virtual wallets (see [6]).
Master/extended public keys are associated with a set of public addresses on which users can receive cryptos. To find these addresses, users can use https://www.blockchain.com/ and enter the master/extended public key into the search field.
It will show the message (see above) with a link. After clicking on the link, it will show 60 addresses and some info on each address.
By clicking on a link in the address column users get more detailed info and a link to a QR image.
By clicking on the icon, users get a QR image of the address.
References:
1. https://cryptobriefing.com/ledger-security-breach-investigation/
2. https://www.merklescience.com/blog/ledger-wallet-scam-drains-214k-lessons-for-crypto-security
3. https://www.publish0x.com/cryptocurrencies-investments/problem-with-my-ledger-xkeoqgo
