09 Mar '13, 2pm

How the First Bitcoin Hedge Fund Approaches Security: An anonymous reader writes with a link to a story at For...

An anonymous reader writes with a link to a story at Forbes about what's said to the first Bitcoin hedge fund ; the article goes into some of the details of how the (literally) valuable data is kept. A selection: "The private key itself is AES-256 encrypted. After exporting Bitcoin private keys from wallet.dat file, data is stored in a TrueCrypt container on three separate flash drives. Using Shamir's Secret Sharing algorithm, the container password is then split into three parts utilizing a 2-of-3 secret sharing model. Incorporating physical security with electronic security, each flash drive from various manufacturers is duplicated several times and, together with a CD-ROM, those items are vaulted in a bank safety deposit box in three different legal jurisdictions. To leverage geographic distribution as well, each bank stores only part of a key, so if a single deposit bo...

Full article: http://news.slashdot.org/story/13/03/09/0757245/how-the-f...

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