In this post, we consider a simple way to reduce risks to forgot/lost your passwords or/and private keys on 99.999%.
An author under nickname “Lost Soul” published recently a post titled: “What If You Forgot Your Bitcoin Wallet Password Forever?” See, [1]. The author proposes the following solution to the problem of forgotten/lost passwords: “I would make sure to save my recovery phrase in at least two different safe places”.
There are two problems with this solution. The first problem is that putting passwords/recovery phrases/etc. in several places increases the risk that some other people can find them. This means that security is weakening by this method. The second problem is that it solves the original problem only on 50%, in other words it reduces the risk to forgot/lost passwords/recovery phrases only on 50%, because these passwords/recovery phrases still can be forgotten or lost, but with 50% reduced chance.
Similar problems are common to many users. Here are some facts:
1. Millions of people forget passwords daily, and an estimated $140 to $400 billion in cryptocurrency is permanently locked away. Because digital assets lack a "reset password" button, losing a password or a seed phrase means losing everything. See, [2].
2. Over 70% of internet users occasionally or frequently forget their passwords. See, [3].
3. Because of memory struggles, about 60% of people reuse the exact same passwords across different websites. See, [4].
4. About 20% of all existing Bitcoin (roughly 1.8 to 3.7 million coins) is stuck in dormant or lost wallets. See, [5].
5. Surveys show that over 30% of crypto holders have lost access to a wallet or account, and nearly one in three of those people never recover their funds. See, [6].
6. 12% lost more than $5,000 in a single incident. See, [6].
7. Users lost a median 30% of their total crypto holdings. See, [6].
8. 49% experienced stress or anxiety after losing access. See, [6].
The much better solution to all these and similar problems is to use dynamical passwords generators (DPGs) to create/recover/manage multiple secure passwords for multiple online accounts and crypto wallets.
A person can not lost/forgot her/his own name, birthday, address, etc. Even in a case of a memory loss due to a trauma or serious illness, such data is recoverable via friends, relatives or medical/public records. If a person enters her/his name into the key field of a private DPG’s input field or/and birthday into date fields and clicks on the “Go” button then 100 super strong different passwords will be generated. These passwords do not need to be saved in any place or remembered. They can be regenerated each time when they are needed with the same procedure.
To create private keys, users need to use offline or online converters. As an example, let us consider how to create multiple BTC virtual wallets from the generated passwords by the private DPG, using an online converter https://www.dynpass.online/demo/bw/btc.html.
A user needs to enter a generated password or any sub string from it into the “Input” field and click on the button “Create wallet”.
Users do not need to save the generated private keys in any place, because they can recreate them any time, by repeating this procedure. Because the generated private keys are not stored in any place they can not be lost, damaged, hacked, forgotten, confiscated, etc.
It is possible to simplify this method by entering just a single digit or symbol into the input fields. See, [7].
There are many other advantages of dynamical passwords generators. See, [8].
References:
2. https://www.oobit.com/lost-or-locked-out
3. https://allaboutcookies.org/password-users-behavior-survey
4. https://nordpass.com/blog/stop-reusing-passwords/
5. https://fortune.com/crypto/2024/04/24/bitcoin-wallets-waking-up-lost-coins-satoshi/
