Fixes #18085
Add a document explaining what the wallet passphrase
does
Fixes #18085
Add a document explaining what the wallet passphrase
does
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0@@ -0,0 +1,21 @@
1+## Wallet Passphrase
2+
3+Understanding the nuances of wallet security is essential to storing your Bitcoin safely. One crucial aspect of safeguarding funds is the utilization of a wallet passphrase or password, implemented through wallet encryption introduced in Bitcoin Core [v0.4.0](https://github.com/bitcoin/bitcoin/blob/master/doc/release-notes/release-notes-0.4.0.md). Let's explore key points to demystify the nature of a wallet passphrase and the encryption process, emphasizing what they do and what they don't do:
4+
5+ - **Not the Seed:**
6+The wallet passphrase is distinct from the seed phrase (recovery phrase). The seed phrase is a crucial backup that can be used to restore access to your wallet and recover your funds. The passphrase, on the other hand, is an additional layer of security specific to secure the private keys in the wallet. Anybody who discovers a wallet's seed phrase can steal all the bitcoins if the seed isn't also protected by a secret passphrase.
0@@ -0,0 +1,21 @@
1+## Wallet Passphrase
2+
3+Understanding the nuances of wallet security is essential to storing your Bitcoin safely. One crucial aspect of safeguarding funds is the utilization of a wallet passphrase or password, implemented through wallet encryption introduced in Bitcoin Core [v0.4.0](https://github.com/bitcoin/bitcoin/blob/master/doc/release-notes/release-notes-0.4.0.md). Let's explore key points to demystify the nature of a wallet passphrase and the encryption process, emphasizing what they do and what they don't do:
7+
8+- **Limited Protection Against Physical Threats:**
9+While the wallet passphrase provides security in the digital realm, it doesn't safeguard against physical threats (like someone using a $5 wrench to force you to reveal your passphrase). Physical security measures are also equally important, and users should be cautious about where and how they access their wallets.
10+
11+- **Protection Against Unauthorized Access:**
12+The passphrase helps protect your funds in scenarios where a stranger gains access to your unlocked computer or device while your wallet application is running. Without the passphrase, an unauthorized user would be unable to access the wallet's funds or perform transactions.
0@@ -0,0 +1,21 @@
1+## Wallet Passphrase
2+
3+Understanding the nuances of wallet security is essential to storing your Bitcoin safely. One crucial aspect of safeguarding funds is the utilization of a wallet passphrase or password, implemented through wallet encryption. Let's explore key points to demystify the nature of a wallet passphrase and the encryption process, emphasizing what they do and what they don't do:
4+
5+ - **Not the Seed:**
6+The wallet passphrase is distinct from the seed. The seed, also known as the HD seed, functions as a master key for deriving key pairs in a hierarchical deterministic (HD) wallet. The passphrase, on the other hand, serves as an additional layer of security, specifically designed to secure the private keys within the wallet. While the HD seed is essential for wallet restoration and fund recovery, the passphrase serves as a safeguard, demanding an additional layer of authentication even if the seed is compromised. This dual-layered approach enhances overall wallet security, effectively mitigating risks associated with unauthorized access and potential theft.
I wonder if this should instead be put in the GUI window and RPC help for the encrypt action, otherwise it seems easy to miss?
The GUI spreads the information over three pop-up windows, which doesn’t seem great, when it can be put into just one Window.
0@@ -0,0 +1,21 @@
1+## Wallet Passphrase
2+
3+Understanding the nuances of wallet security is essential to storing your Bitcoin safely. One crucial aspect of safeguarding funds is the utilization of a wallet passphrase or password, implemented through wallet encryption. Let's explore key points to demystify the nature of a wallet passphrase and the encryption process, emphasizing what they do and what they don't do:
4+
5+ - **Not the Seed:**
6+The wallet passphrase is distinct from the seed. The seed, also known as the HD seed, functions as a master key for deriving key pairs in a hierarchical deterministic (HD) wallet. The passphrase on the other hand, serves as an additional layer of security specifically designed to secure the private keys within the wallet. While the HD seed is essential for deriving private and public keys in the wallet, the passphrase serves as a safeguard, demanding an additional layer of authentication to access funds on the wallet. This dual-layered approach enhances overall wallet security, effectively mitigating risks associated with unauthorized access and potential theft.
7+
8+- **Limited Protection Against Physical Threats:**
0@@ -0,0 +1,21 @@
1+## Wallet Passphrase
2+
3+Understanding the nuances of wallet security is essential to storing your Bitcoin safely. One crucial aspect of safeguarding funds is the utilization of a wallet passphrase or password, implemented through wallet encryption. Let's explore key points to demystify the nature of a wallet passphrase and the encryption process, emphasizing what they do and what they don't do:
4+
5+ - **Not the Seed:**
128+
129+- **Not the Seed:**
130+The wallet passphrase and the seed are two separate components in wallet security. The seed, or HD seed, functions as a master key for deriving private and public keys in a hierarchical deterministic (HD) wallet. In contrast, the passphrase serves as an additional layer of security specifically designed to secure the private keys within the wallet. The passphrase serves as a safeguard, demanding an additional layer of authentication to access funds in the wallet.
131+
132+- **Protection Against Unauthorized Access:**
133+The passphrase serves as a protective measure, securing your funds in situations where an unauthorized user gains access to your unlocked computer or device while your wallet application is active. Without the passphrase, they would be unable to access your wallet's funds or execute transactions. However, it's essential to be aware that someone with access can potentially compromise the security of your passphrase by installing a keylogger. To enhance security, prioritize good practices such as running up-to-date antivirus software, and inputting your wallet passphrase exclusively into the Bitcoin client
121@@ -122,6 +122,22 @@ $ bitcoin-cli -rpcwallet="restored-wallet" getwalletinfo
122
123 The restored wallet can also be loaded in the GUI via `File` ->`Open wallet`.
124
125+## Wallet Passphrase
126+
127+Understanding the nuances of wallet security is essential to storing your Bitcoin safely. One crucial aspect of safeguarding funds is the utilization of a wallet passphrase or password implemented through wallet encryption. Let's explore key points to demystify the nature of a wallet passphrase and the encryption process, emphasizing what they do and what they don't do:
ACK d07557d0038521f78baf3f1c94e1f282f51b8c1b
Could still be condensed a bit more but this is alright.