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Stephan Livera: Discrete logarithm security critical when sharing xpub in hardware and software wallets
Stephan Livera, head of education and podcast host at Swan Bitcoin, discusses the reliance on the discrete logarithm problem for security in cryptocurrency wallets.
He points out that users trust this mathematical challenge to remain hard when hardware wallets share their xpub with online devices, wallet software communicates xpubs or output descriptors with providers, or users share xpubs with payees.
Livera has previously highlighted differences in asset control. He noted that USDT can be centrally frozen by authorities, while Bitcoin held in self custody is not subject to such action. In a separate update, Livera described Strategy’s sale of 32 BTC as minor compared to earlier transactions.
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