The smell of fall in the air, this weekend I feasted on apple delights, watched the leaves change, and oh yeah, traveled to make sure my bitcoin escrow is up to date…
If you x.com/pete_rizzo_”>follow me on xyou know I have bitcoin with homea multi-signature security provider, and I use the service to manage a few different multi-signature vaults for various purposes.
This requires keeping a number of keys and wallets up to date and, as I don't keep any key materials at home, it requires a certain degree of routine and dedication.
I've maintained my own bitcoin custody since 2020, and along the way, I've developed some good habits. That being said, something that always surprises me is how much more stressful it is than trusted setups.
One thing that always gives me something to think about: updating the firmware.
As I've written before, I'm not very technical. My specialty in bitcoin is history, and while that requires me to know about network theory and architecture, there's something about seeing digital gears and a loading bar that makes me very uncomfortable.
I say all this because it is a lesser known issue with the bitcoin hardware wallets that most use for self-custody. These devices, called “signature devices” by the creator of Coldcard x.com/nvk?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor”>nvkDo just that, they manage your key material and sign on your behalf when making a transaction.
But, being active digital devices, they are not infallible. They require some maintenance. All you need to do is scroll down for some updates of people losing bitcoin on firmware updates to learn the drawbacks
It's a common problem and the culprit is always a corrupt hardware device (and a lost backup). Add in that multi-signature vaults, which require a combination of keys to sign a transaction, are not yet the norm, and the number of bitcoin lost seems to always be up and to the right.
The most common problem: the user does not update their firmware frequently, waits and then damages their device, later discovering that they have also lost their seed phrase.
here it is x.com/pete_rizzo_/status/1787875215696887828″>Andrew explaining firmware updates in more detailalthough it doesn't actually update your firmware, it only manages your seed phrase.
Suffice it to say, it's an example of why the world of self-custody, however improved, still makes me uneasy. In my case I updated my wallets without much problem. Only one of the wallets needed a firmware update, and it was simple. (I take a few minutes to prove that my coins are safe.)
That said, I had to make sure I checked my other keys beforehand and had several multi-signature keys needed in the worst case, as well as my initial backups.
This is what makes bitcoin custody such a high-octane process: you can never be too careful. When you are your own bank, there is always the possibility that something can go wrong.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
