PQ-single-address-backup - BIP-38 for P2MR (bc1z) - 104-char encrypted backup format

The discussion revolves around the technical approach to enhancing encryption methods for digital wallet security, particularly focusing on cold-storage backups resembling BIP-38 but applicable to Post-Quantum Cryptography (PQC) with SLH-DSA seeds. The proposed solution includes creating an encrypted backup that is concise and easy to scan, maintaining a one-line equals one-key sweep invariant, crucial for effective key management and recovery processes.

The technique suggested involves using a minimal outer header containing essential elements such as version information, Key Derivation Function (KDF) identifier, and bounded parameters, which would be utilized as associated data in Authenticated Encryption with Associated Data (AEAD). This configuration allows the KDF to be selected prior to decryption while enabling the detection of any tampering with the header. It's important to note that AEAD's role is specifically to signal authentication failures rather than verifying the integrity of the password or the ciphertext itself, which could still be prone to issues like transcription errors that are detected via a pre-KDF checksum.

Furthermore, the proposal includes standardizing this format to ensure wide applicability and adoption, avoiding proprietary solutions. The idea is to establish a shared Bitcoin Improvement Proposal (BIP) that supports a pure 32-byte seed that is prefix-agnostic and compatible with BIP-360, featuring a 104-character visual invariant. This standardization would involve collaborative decisions on key components such as KDF bounds and failure semantics among wallet developers. The initiator of this proposal is open to co-authoring or transferring ownership to encourage community involvement and consensus in developing these enhanced security measures.