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Good thing nobody can tell when the hot wallet starts to run low, otherwise they might know the exact moment when the keys need to come together.
by decker 9y ago
Good thing nobody can tell when the hot wallet starts to run low, otherwise they might know the exact moment when the keys need to come together.
- tehlike 9y agoFor bitcoin, they can actually tell. For things like monero, not really.
- AgentME 9y agoThe keys don't have to come together. Each keyholder can separately sign the transaction from wherever they are on the planet. The transaction to add funds into the hot wallet could have been pre-arranged. One of the keys could be controlled by a law office on the other side of the planet with contractual obligations to only sign the hot-wallet-refill transaction with a certain amount when the hot wallet falls below a certain amount and when the exchange requests it. The cold-wallet that they're funding from could itself be funded by a timelocked transaction to guarantee that the cold-wallet isn't emptied out too fast, and an entirely different set of law offices that the exchange doesn't regularly contact control the keys that allow the cold-wallet to be emptied out faster. If the different types of on-chain controls like timelocked transactions aren't enough, then some of the keys could be in tamper-proof hardware-security-modules that further restrict how the keys can be used.