A simple backup scheme for wallet accounts

The newly created Rust library, named descriptor-encrypt, provides a novel solution for encrypting any descriptor to ensure that only authorized spenders can decrypt it. This development is particularly noteworthy as it aims to align the access control policy directly with the spending policy of the descriptor. The library stands out for its compatibility with all types of descriptors and miniscript, showcasing its versatile application across various cryptographic scenarios. Additionally, it incorporates an innovative tag-based and variable-length encoding scheme designed to reduce the encrypted data's size effectively.

One of the pivotal features of descriptor-encrypt is its "full secrecy" mode, which significantly enhances data security. When activated, this mode allows encrypted data to be stored publicly without compromising the security of the underlying descriptor. This means that in the event of an unauthorized attempt to access the data, the attacker would not be able to learn anything about the descriptor or even acknowledge its existence, unless they manage to compromise enough seeds required to spend the funds. This level of security addresses previous concerns regarding the handling of complex wallet setups, such as those involving hash-lock or time-lock mechanisms, by providing a robust encryption solution that safeguards against unauthorized access.

For those interested in exploring the library further or implementing it in their projects, more information, including a comprehensive guide and a demo, is available through the provided links. The GitHub repository for the project can be found at https://github.com/joshdoman/descriptor-encrypt, and a live demo is accessible at https://descriptorencrypt.org. This initiative reflects a significant advancement in cryptographic security, offering a tailored encryption approach that promises to enhance the security and privacy of digital assets.