A simple backup scheme for wallet accounts

The discussion revolves around enhancing the security and reliability of a cryptographic system designed for generating and storing secrets, specifically focusing on a multi-key setup where each participant holds a key part (ci). A proposed method to improve security involves not generating a key part for individuals who should not have access to the secret, thereby directly controlling access. Additionally, the suggestion to utilize different entropy sources or paths for generating these keys is considered, aiming to standardize the process and potentially integrate with hardware features in the future. This approach, however, introduces the need for all devices involved to contribute their key parts for the backup process, contrasting with the current setup where any single participant can initiate an encrypted backup.

This new strategy addresses concerns regarding the unpredictability of key generation paths by proposing a more uniform approach that could also facilitate the addition of hardware-based security enhancements. Such enhancements might include confirmations on a device's screen before a key part is shared, increasing user control over the security process. The dialogue also emphasizes the importance of incorporating an error correction mechanism into the system. This feature would ensure the integrity of backups, especially in scenarios like disaster recovery or inheritance planning, where a single copy of the data might be stored and needs to be reliably accurate. The preference against using blockchain technology for this purpose suggests a prioritization of privacy and efficiency, considering the potential limitations in storage and the desire to avoid public dissemination of sensitive information.